Transfer of Goods from SEZ Implications

[Abhijeet Mane]

Dear Sir/Madam,

I have the following queries:

1) SEZ Unit want to export the capital goods to outside India- the same was imported for authorised operation and now want to export please answer implication as under;

(a) If positive NFE is maintained by the unit

(b) if positive NFE is not maintained

(c) Export at the time of exit from SEZ

2) SEZ want to transfer the assets/goods to a warehouse setup under the MOOWR scheme

3) SEZ want to transfer the Capital Goods under a new EPCG scheme- whether it is permitted? what are the implication on such transfer? Since EPCG cannot be claimed for second hand goods whether the capital goods can be considered as second hand and cannot be transfer?

Please guide with legal backing

[Shilpi Jain]

SEZ selling the capital goods to a MOOWR unit will not be liable to customs/IGST as it is like a bond to bond transfer.

AI Summary

Bond-to-bond transfer of SEZ capital goods: transfer to MOOWR unit not subject to customs or IGST. A sale or transfer of capital goods from an SEZ unit to a MOOWR unit is treated as a bond-to-bond transfer and is not liable to customs duty or IGST.