Suppply to SEZ unit

[Rahul Sonawane]

Dear Sir,

We are Importer Dealer Registered under Central Excise. We have a order from SEZ unit to supply the goods,

These goods would be imported and supplied to SEZ unit.

Now my question is that can we import the goods with out payment of duty for further supply to SEZ unit.

Your immediate reply in this regards will be highly appreciated.

Regards,

Rahul Sonawane

[YAGAY and SUN]

By opting Advance Authorisation route, you may import goods without payment of duty and after processing, you may supply to SEZ (after following the set procedure as mentioned Section 30 of SEZ Act for fulfilling the Export Obligations

[Rahul Sonawane]

Dear Sir,

As i mentioned above , we can't go Advance Lic, as it is a trading activity, we are Dealer. not any mfg activity is involved in this transaction.

 

[YAGAY and SUN]

Then there is no way out.  You would have to pay the Customs Duties.

AI Summary

Advance Authorisation enables duty free import for supply to SEZ subject to fulfilment of export obligations; otherwise duties apply.
A dealer queried if goods imported for supply to an SEZ unit can be imported duty free. The operative mechanism is the Advance Authorisation scheme, which allows duty free import for supply to an SEZ conditional on fulfilling Export Obligations and complying with the procedures under Section 30 of the SEZ Act. If the dealer (a trading entity) cannot use Advance Authorisation, duty exemption is unavailable and customs duties must be paid on import.