Applicability of export duty on sales made by SEZ unit

[SARTHAK MITTAL]

Dear All,

I wanted to understand if export duties under Customs Act 1961 will be applicable if the notified products are sold from an SEZ unit?

Unlike DTA sales to SEZ unit where Rule 27 provides for levy of export duty, is there any specific provision for levy of export duty on export sales

[Shilpi Jain]

Recently there was Trade Notice No.1/2022 dated 3.6.22 - export duty will be liable.

Also refer section 2(m)(ii) of SEZ Act with Rule 27(1) of Rules

[SARTHAK MITTAL]

Thanks for clarifying.

Export duty on DTA sales to SEZ is fine, but what about export duty on SEZ sales to foreign countries.

Will section 26(1)(b) be considered for not levying export duties on final products sold by a SEZ unit to let say an australian customer

[Ravinesh Sinha]

Export duty on specified goods is payable if unit of SEZ export out of country .

AI Summary

Clarifying if export duties apply to SEZ unit sales under Customs Act 1961; Section 26(1)(b) may offer exemptions. A discussion on the applicability of export duties for sales made by a Special Economic Zone (SEZ) unit under the Customs Act 1961. The initial query sought clarification on whether export duties apply to products sold from an SEZ unit. Replies indicated that recent trade notices and specific sections of the SEZ Act and Rules suggest export duties are applicable. However, questions remain about the application of duties on SEZ sales to foreign countries, with references to section 26(1)(b) potentially exempting such sales from export duties. The consensus is that export duty is payable on specified goods exported by SEZ units.