SEZ Units can Export and Import
Prohibited or Restricted Goods Prior Approval of BOA Must
[Instruction
No. 47 – No. C-4/1/2010-SEZ
dated 4th March 2010]
Subject: Procurement, Import and Export of
Prohibited and Restricted Goods.
As
per present Foreign Trade Policy, SEZ units cannot export “prohibited items of exports”.
However, they do not require any permission to export “restricted items of
export”. To appreciate perspective and the background of this Policy,
interactions with the O/o DGFT revealed that prohibitions on exports is imposed
keeping the National requirements in view. Therefore, SEZ units should not be
permitted to procure these items from domestic area and export the same.
References
have been received from units to permit them to import rawmaterials
to make such finished products whose export, at present, is prohibited. Since
inputs were not procured from Domestic Area, their suggestion was that the
policy on prohibition of exports should not apply to them. In terms of the
provisions of the Foreign Trade Policy, an item whose import is restricted can
be imported under Customs Bond for export, export of
imported logs/timber is not prohibited. Hence, these exceptions in the Foreign
Trade Policy are, at par, with the suggestion of the units.
Keeping
the above in view, it has been decided that SEZ units should be permitted:
(i) to export prohibited items, provided they import
raw-material for the same. However, each such case will be placed before BOA
for approval so that views of DGFT, DoR and others can be considered before
taking a decision.
(ii) In respect of items which are prohibited for
import, SEZ units will be permitted to import the same provided they export
goods made out of the same. As in the case of exports, each such case will be
placed before BOA for consideration and approval.
(iii) In respect of supply of Restricted Items by a
DTA unit to SEZ Developer/Unit, the DTA unit can supply such items to a SEZ
Developer or unit for setting up infrastructure facility or for setting up of a
unit. It can also supply raw material to SEZ unit for undertaking a
manufacturing operation except refrigeration, cutting, polishing and blending.
However, it will require prior approval of BOA.