Sale to SEZ unit by an unregistered trader

[Ramachandran and Ramachandran Associates Subramanian]

Can a trader, who is not registered under central Excise Act,1944, supply goods to a unit located in a SEZ as “deemed export” on  ARE-1 without charging excise duty ?. If it is not possible to supply on  ARE-1 then what is the procedure to be adopted by a trader for supply to SEZ without charging duty.

[YAGAY andSUN]

Dear Sir,

Please check the Rule 30 of the SEZ Rules in this regards.  The unregistered dealer would have to file a bill of export before dispacthing the material to SEZ and get it endorsed from the jurisdictional development commissioner/officer (as the case may be) to avail the benefits of Deemed Export.

Regards

Pradeep Khatri

AI Summary

Deemed export treatment requires a pre dispatch bill of export and official endorsement to permit supply without charging excise duty. An unregistered trader supplying goods to an SEZ unit must file a bill of export before dispatch and obtain endorsement from the jurisdictional SEZ officer to avail deemed export benefits and permit supply without charging excise duty, in accordance with the SEZ Rules.