Circular No. 7/2002-Cus
29th January, 2002.

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

Sub: Transfer of Goods Imported/Procured by EOUs/EPZ/STP/EHTP to SEZ Units – Reg.

  I am directed to invite your attention to the notifications governing duty free import/procurement of goods by EOUs and units in EPZ/STP/EHTP. It may be noted that these notifications have specific provisions providing for transfer of imported/indigenously procured goods and for transfer of manufactured, processed etc. goods from one unit to another for the purpose of further manufacture and export. However in these notifications, there are no specific provisions for transfer of goods to the units located in Special Economic Zones (SEZ). In this connection, a doubt has been raised as to whether EOUs/EPZ/STP/ETHP units can transfer the goods referred to above to units in SEZ in absence of specific provisions to this effect in Customs /Central notifications governing the EOU/EPZ/STP/EHTP Scheme.

2. The matter has been considered by the Board. Paragraph 9.16 of the Exim Policy provides that an EOU/EPZ/STP/EHTP unit may transfer manufactured goods to another EOU/EPZ/EHTP/STP/SEZ. Further, it provides that goods imported/ procured by an EOU/EPZ/EHTP/STP unit may be transferred or given on loan or lease to another EOU/EPZ /EHTP/STP/SEZ unit. Corresponding provisions exist in Chapter 9A(paragraph 9-A.11) of the Exim Policy, which deals with SEZ scheme. A plain reading of these provisions makes it clear that inter-unit transfer of goods under the EOU/EPZ/STP/EHTP/SEZ scheme is allowed under the Exim Policy.

3 In view of this, you may kindly allow EOU/EPZ/STP/EHTP units to transfer the goods imported/ procured or goods manufactured/ processed in such units to the units in SEZ. Suitable amendments incorporating specific provisions for such supplies by EOU/EPZ/STP/EHTP units to SEZ units would be made in the notifications governing EOU/EPZ/STP/EHTP scheme at the appropriate time.

4. Wide publicity may be given by issue of a Public Notice in this regard.

5. Difficulties, if any, faced in the implementation of the above instructions, may be brought to the notice of the Board at an early date.

 Kindly acknowledge receipt of this Circular.

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