Central Government vide its notification no. Notification No. 4 (RE-2008)/2004-2009  dated 11th April, 2008  had inserted S.No. 72A  in Chapter 25 under Schedule 2 of ITC(HS) to put 100% ban export of Cements.

Since SEZ are situated within the territory of India but deemed to situated outside India for certain purposes and supply to SEZ is deemed as exported out of India, Central Government has granted some relaxation by issuing notification no.  5(RE-2008)/2004-2009 dated 15-4-2008.

Accordingly, Supply (deemed export) of cement to SEZ units is now permitted.

Supply to SEZs permitted despite cement export ban as such transfers qualify as deemed exports. A Central export prohibition on cement was modified by a subsequent notification permitting supply of cement to SEZ units because supplies to SEZs are treated as deemed exports, so transfers to SEZs are allowed despite the export ban.