This notification exempts goods used within special economic zone from basic Customs duty and Additional duty.
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Customs duty exemption for Special Economic Zone units subject to bond, NFEP compliance, recordkeeping and conditional penalties.
Exemption from basic customs duty and additional duty is allowed for goods imported into or procured for use by units within a Special Economic Zone for manufacture, processing, assembly, trading, repair, packaging and related activities, provided the unit is authorised by the Development Commissioner, executes a bond undertaking use and disposal in accordance with the Export and Import Policy, maintains prescribed accounts and achieves positive Net Foreign Exchange Earning as a Percentage of Exports; failure to meet conditions triggers duty liability proportional to shortfall and interest, and customs may permit controlled temporary removals and transfers under conditions.