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Bill of Export and Advance License

Rajaram M (Asst. Manager Materials) (180 Points)

18 April 2011

Is it necessary to send the Bill of Export along with C/ment for DTA to SEZ supply if the goods imported under Advance License? Can you please clarify the obligation in the particular case?

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3 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 18 April 2011

Section 26 (c) of SEZ Act provides that the goods brought to a Special Economic Zone or an SEZ unit from Domestic Tariff Area (DTA) for carrying out authorized operations by the developer or SEZ unit, shall be exempt from payment of Central Excise duty leviable under Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or any other law for the time being in force.

Section 53(1) of the SEZ Act, 2005 treats the territory of SEZ outside the Customs territory of India on deemed basis. Further section 2(m)(ii) of the SEZ Act provides that supplying goods from DTA to a unit or developer shall have the status of export. Section 26(d) of SEZ Act, seeks to extend drawback or other benefits in case of supplies from DTA to SEZ. Thus supplies from DTA to SEZ are considered as exports.

The duty of excise in respect of goods manufactured in DTA is to be paid by the manufacturer of the goods. However, the goods manufactured in DTA and supplied to SEZ (developer/unit) are exempted in terms of rule 19 of Central Excise Rules, 2002 on account of supplies being in the nature of exports. The supplies are subject to the conditions notified under the notifications issued under rule 19 with the modifications provided for under rule 30 of SEZ Rules, 2006. This aspect has been clarified vide Circular No. 29/2006-Customs, dated 27.12.2006. Certain benefits, namely, drawback, DEPB, rebate of duty, fulfillment of export obligation under FTP etc as available in respect of normal exports out of India, have been extended to the supplies made from DTA to SEZ.

in CONCERNED DGFT/ RLA SUBMISSION OF THE SHIPPING BILL WITH BRC IS MANDATORY FOR THE REDEMPTION PURPOSES.

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 18 April 2011

In cases where the DTA supplier is not registered under Central Excise or the supplier is a trader or merchant exporter the procedure for assessment of Bill of Export as provided under the SEZ rules and discussed in the preceding paras would be applicable with the modification that there would be no requirement of ARE 1 or the invoice issued under Rule 11 of Central Excise Rules, 2002

jayaram GA (Regional Manager) (26 Points)
Replied 07 July 2016

Dear Mr. Ramesh kumar verma,

We have imported the raw materials under advance liscense and selling the finished goods to an SEZ. Do you mean to say, we need to execute ARE.. How exactly we can close this liscense. What are the documents to be produced to DGFT for closure of advance liscense? Can you please suggest

Rgds

jayaram