Raw Material Import without duty in SEZ.

[JIGNESH SITAPARA]

Dear Experts,

My client wish to Import from China to Mundra (SEZ) port without any duty. And same raw material will assemble and export to another. Can he do it ?? Please help me.

AI Summary

SEZ units importing raw materials duty-free under Rule 27 must use them for authorised exports or face duty recovery An SEZ unit approved under the SEZ Act, 2005 and SEZ Rules, 2006 can import raw materials into a notified SEZ such as Mundra without payment of customs duty, IGST, or other taxes, provided the goods are used for authorised operations specified in its Letter of Approval and for production meant for export. SEZs are deemed outside India's customs territory for such imports, subject to compliance with Rule 27, maintenance of prescribed accounts, and fulfilment of export/NFE obligations. If finished or semi-finished goods are cleared to the Domestic Tariff Area, applicable customs duties and GST become payable. Non-compliance, diversion, or unauthorised use of duty-free materials can lead to duty recovery, interest, and penalties under SEZ and Customs laws.