Removal of Manufacturing goods from Section 65 unit operating under MOOWR,2019

[Abhijeet Mane]

Please clarify whether customs duty payable or not for the removal of Manufacturing Goods from a section 65 unit operating under Manufacture and Other Operations in Warehouse Regulations 2019 to a

1] Special Economic Zone unit ( 'SEZ unit') as defined under SEZ Act,

2] Export Oriented Unit ('EOU') as defined under Foreign Trade policy,

3] another section 65 unit operating under MOOWR 2019.

Also please refer the respective section under Customs Act for the same.

AI Summary

Removal to SEZ treated as export, exempting basic customs duty and qualifying as zero-rated supply for indirect taxes.
Supplies from a Section 65 MOOWR unit to an SEZ are treated as exports and not subject to basic customs duty, being zero-rated. Clearance for home consumption attracts basic customs duty. Supplies to an EOU may be treated as home-consumption clearances (liable to basic customs duty and GST), though administrative guidance and the scheme's export intent create a gray area if the EOU subsequently exports. Transfers between bonded/Section 65 units under transfer bond do not attract customs duty.