Documents reqd for sale of goods to a unit in SEZ

[Asked by Guest]

What are the procedures to be followed and what are the documents to be filed witht he department for sale of goods to a unit of Special Economic Zone?

[Snehal Kulkarni]

Supplies to SEZ are treated as Physical Export ( Export Without Payment of Duty )

The supply to made against the ARE-1 form. If you are claiming any Export Incentive like DBK then you have to file the Bill of Export ( Bill of Entry)

The Proof of export i.e Custom Attested ARE-1 needs to produce as Proof of Export within 45 Days from the date of clearance beforet the Jurisdictional AC/DC.

Before clearance to SEZ, it is advisable to take the LoP from the SEZ unit.

[Ramaiah Swamy]

dear mr. venkatesan,

 

1.  Goods supplied to SEZ unit are considered as export

2.  Accordingly,  such supply will be without payment of any central excise duty

3.  You may supply the goods under ARE - 1 procedure

4.  Distribution of ARE - 1, raising of cenvattable invoice, central excise sealing ( at your option)  and submission of Annexure -19 is same as in the case of general direct export

5.  Cusoms-attested ARE - 1 is treated as proof of export.  You may get the same from your SEZ unit customer and submit to your jurisdictional central excise office

6.  In case you want to claim benefits such as drawback or depb, you have to file Bill of Export ( which is similar to shipping bill) duly assessed by your  range office or by the customs authorities in charge of your customer - unit.

7. The supplies can also be made against rebate route

8.  For futher details you may refer to rule 30 of SEZ rules and CBEC circular of December 2006

Hello all,

I am an excise dealer and I want to sell goods to a SEZ unit. My customer's manufacturing unit is in SEZ, Surat and his office is in Mumbai. My premises of functioning are in Gujarat. My customer asked me to send ARE-1 form, Form 402 and invoice to clear the shipment in SEZ unit.

1. Why do they need Form 402?

2. I am still not clear whether I should demand Form-i and Certificate of Procurement from my customer in SEZ?

3. Also, about ARE-1 forms, how many copies do I have to make and how to use those copies?

4. I want to go for duty drawback, but I have heard that it is difficult to recover drawback from the government office. I get drawback of 1.7% so should I go for that initiative?

AI Summary

Supply to SEZ units treated as export; exempt from central excise and require customs attested ARE 1 as proof.
Supplies to SEZ units are treated as physical exports exempt from central excise and effected under ARE 1. Customs attested ARE 1 is the proof of export and should be submitted to the jurisdictional central excise office (noting the referenced 45 day timeframe). Claiming export incentives requires a Bill of Export assessed by customs or the range office. Export formalities-ARE 1 distribution, cenvattable invoice, optional excise sealing and submission of Annexure 19-follow general direct export procedures; obtaining a Letter of Permission from the SEZ unit is advisable.