EOU supplies to SEZ

[Ashok Chopra]

Respected Forum,

I am EOU and Status Holder having permission of Self Sealing from Central Excise Authorities in terms of Circular No. 12/2005 dated 04-03-2005 and sent Loose consignment  to another unit in SEZ on ARE-1 clearance at our own in terms of above circular.

Custom office at SEZ not considering it as permission granted to us only for Container Sealing, hence they are asking me to debit duty on the consignment, hence it will be treated as DTA sale, I have applied for DTA sale permission to Development Commissioner, they verbally asked me that being status holder, DTA sale permission is not required to us in terms of para 6.38.8 of Foreign Trade Policy (Fast Track Clearance Procedure)

My quieries:-

1.  Are they correct and i should debit duty?

2. If yes, how much duty Only excise duty and Cess or Custom duty and Excise Duty Both  

3. If no, which circular,  notification  or act i should show them, to get the consignment cleared.

Pls guide me accordingly

Ashok Chopra

[HARISH RADHAKRISHNAN]

Dear Ashkoji,

You are not required to pay any duty in respect of the clearance made from an EOU to SEZ,

The customs officer at the SEZ gate is only required to examine the goods afresh at the SEZ gate to ascertain the identity of the goods supplied.

CBEC CIrcular 29/2006-Customs dtd 27.12.2006 para 7 has the solution to your problem.

Have a nice day

Harish. Gen Manager. SIIL Pune

AI Summary

EOU to SEZ Consignment: No Duty Required, CBEC Circular 29/2006 Clarifies Self-Sealing and Identity Verification Only An EOU status holder with self-sealing permission from Central Excise Authorities faced issues when sending a consignment to an SEZ. The SEZ customs office treated it as a DTA sale, requiring duty payment. The EOU sought clarification on whether duty should be debited and, if so, what type. A response clarified that no duty is required for EOU to SEZ clearances, and the SEZ customs officer should only verify the goods' identity. CBEC Circular 29/2006, paragraph 7, supports this position, resolving the issue without the need for duty payment.