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SME Chatroom: 'SEZ units need to be net foreign exchange earners'

SEZ units have to only achieve positive NFE and so the Customs need not demand refund of customs duty on the inputs

Govt plans to remove minimum alternate tax on SEZs, boost exports
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The first proviso to Rule 35 of the SEZ Rules, 2006 (relevant extracts), says that at no point of time will the unit be required to co-relate every import consignment with its export

T N C Rajagopalan
Can the SEZ Customs demand payment of customs duty from SEZ units for 10 per cent write-off of non-realisation of export proceeds? Neither in the RBI master circular, nor under the FTP, nor under the SEZ Rules is it mentioned that customs duty should be refunded if 10 per cent write-off has been done by SEZ units for non-realisation of export proceeds. The SEZ concept is to achieve positive NFE. The rule is very clear that duty is liable only for unutilised goods. Please give your opinion.

I agree that SEZ units have to only achieve positive NFE and so

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First Published: Jul 26 2022 | 12:16 AM IST

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