Instruction No. 105

Government of India
Ministry of Commerce & Industry
Department of Commerce
SEZ Division

Udyog Bhavan, New Delhi
Dated 5th February, 2021


All Development Commissioners
Special Economic Zones

Subject: One time waiver of Custom Duty as well as inspection requirement in case of de-bonding of IT/ ITeS units in SEZs and exemption on filing of BOE for goods sold by IT/ITeS SEZ unit which were initially procured on payment of duty and not used for authorised operations.


I am directed to refer to the subject mentioned above and to state that representation has been received in this Department from NASSCOM on the subject mentioned above and the same was examined and with the approval of competent authority following has been decided:

SI No. NASSCOM recommendation Remarks
(A) Introduce a one – time waiver on As the custom duty as well            asunder inspection requirement.

As part of the current de – bonding process, physical inspection of duty – free goods is done by thetax authorities to ascertain tax liability depending upon the remaining lifeexiting of such equipment. Given the fact simple that      majority of employees are working from home using the duty -they free assets, the requirement of physical inspection of duty – free assets would lead to significant operational  and administrative burden for the units. Considering the short shelf life and high depreciation value    for IT assets,  we suggest that
government should consider one ­time waiver of custom duty and inspection requirement on such IT assets, to expedite the process of surrendering SEZ benefits

As part of exiting from SEZ scheme rule 74 of SEZ Rules, physical inspection of duty free goods is done by the SEZ Customs officers to ascertain liability depending        upon the remaining life of such equipment. The IT/ITES SEZ Unit may opt for payment of duty  without
inspection subject to the condition that produce all relevant import and
other documents of goods to establish their identity and to avoid requirement of physical inspection of duty free goods.
(B) Goods imported / procured by IT ITES SEZ unit on payment o applicable duties and are not used for authorised operations are allowed to sold to DTA withou payment of customs duty and without filing bill of entry for home consumption as per Rule 49 (4) (a) read with proviso to Rule 48 (3) o SEZ Rules, 2006.

However, AO / SO are insisting to file bill of entry for home consumption with nil duty even fo DTA sale of goods as such which were initially procured on paymen of applicable duties and not used forauthorised operations.

Instructions may be issued to the effect that filing of BOE is no required for goods sold by SEZ uni which were initially procured o payment of duty and not used fo authorised operations.

If an IT/ITES SEZ Units procured good from DTA and supplied back to DT under the provisions of Rule 48(3) o SEZ Rules, 2006, the movement of the goods may be done on the basis of o invoice only and filing of bill of entry in such cases is not required. Whereas if an IT/ITES units import goods into SEZ after paying applicable duty and further clear it into DTA unde Rule. 49(4) (a) of SEZ rules, 2006 would amount to import into DTA as pe Customs act, thus, mandating the filing of Bill of Entry in such cases.



2. DCs are requested to keep above mentioned points before considering above proposal of IT/ITES unit under their jurisdiction.

3. This issues with the approval of competent authority.

Yours faithfully,

(Sumit Kumar SAI-)
Under Secretary to the Govt. of India
Tel. 23062496
e-mail: [email protected]

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February 2021