Prohibition on export of cement, not to apply to SEZ – but will export duty on steel products apply?
The dichotomy of an SEZ situated very much in India being treated as a foreign land for the purpose of exports and imports is causing quite a lot of hardships. DGFT has now notified that the bar on cement export will not apply to SEZ .
The prohibition on export of cement will not apply to supplies of Cement from Domestic Tariff Area ( DTA ) to units in Special Economic Zone (SEZ) or SEZ Developers/ Co-Developers for use within the SEZ only.
And the existing ban on export of cement and cement clinker shall not be applicable to export to Nepal .
But what about export duty on goods cleared from the DTA to SEZs ? On 10 th May, 2008, the Government imposed export duty on several steel items and the entire SEZ scheme is put on hold as nobody is clear whether export duty has to be paid on the clearances from DTA to SEZ . In fact some Range officers are already “persuading” their assessees to pay export duty. Even if export duty is to be paid, it is not to be paid by the manufacturer clearing his goods to the SEZ – it has to be paid by the SEZ unit!
Will somebody clarify soon before our consultants become richer?
DGFT Notification No. 12 (RE-2008)/2004-2009, Dated: May 21, 2008