Supplies to SEZ

[K Balasubramanian]

Kindly clarify as to whether supplies to SEZ are treated as physical exports or deemed exports.

[Rama Krishana]

Your query is wide open. SEZ area or units are within the jurisdiction of India. The term Export has different scope under different law / prospectives. If you wish to know from customs prospective, yes it is physical export. But, if you wish to know from another prospective, it is to be seen from that prospective and law. As such supplies to SEZ is nothing but supplied within India and not Export.

[dinesh agrawal]

Supply to India are traeted as deemed export under FTP/customs.

[Snehal Kulkarni]

SEZ units are deemed to be outside the customs territory of India though they are physically located in India.

The DTA supplies are considered as physical Export ( see Cus Circular No 29/06-Cus) where the Proof of Export needs to submit within 45 days from the date of cleareance.

The supplies are made against the ARE-1 form and govened by the CEX Notification No 42/01-NT

 

AI Summary

Supplies to SEZ: treated as physical exports under customs, requiring ARE 1 and timely proof, though other laws may deem them exports.
From customs perspective SEZ units are treated as outside the customs territory and supplies to them are treated as physical exports, requiring ARE 1 documentation and submission of proof of export within the prescribed time; under other regulatory regimes supplies to SEZs may be characterised as deemed exports and must be classified by reference to the relevant statute or policy.