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Concessions to SEZs

Supplies to SEZs for the authorized operations of the SEZ Units are exempted from payment of Central Excise Duties and Service Tax.  However rebate for Central Excise Duty paid by DTA supplier on supply of goods to SEZ Units can be claimed from the jurisdictional Central Excise authorities.

The SEZ Act 2005 provides for setting up of a Single Window Clearance Mechanism for speedy implementation of SEZ Projects.  Accordingly, the State Governments are expected to take suitable steps to notify the SEZ policy and enact suitable enabling legislation in this regard for their respective States. A few States have enacted their State SEZ Acts.

As per Rule 53 of SEZ Rules 2006 the SEZ units are under an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production. Under Rule 53 certain categories of sales/supplies have also been permitted to be counted towards NFE earnings. Value of transactions under such categories are a very small percentage of the total exports made from SEZs. The total exports from the SEZs outside the country and sales to Domestic Tariff Area from SEZs, during the financial years 2009-10 to 2012-13 and first quarter of current financial year (April, 2013 June, 2013) are as under:

Financial Years

Value of Exports

Supplies which are treated towards positive NFE earnings.

Sales to Domestic Tariff Area

Total Exports

Percentage shared of column III over column V

(Value  in Rs. Crore)

I

II

III

IV

V

VI

2009-10

2,20,711.39

13,937.04

19,200.92

2,53,849.35

5.49%

2010-11

3,15,867.85

29,093.05

13,881.20

3,58,879.07

8.11%

2011-12

3,64,477.73

32,472.70

29,664.83

4,26,615

8%

2012-13

4,76,158.93

27,884.80

27,545.46

5,31,589

5%

 2013-14*

1,13,299

8,055.70

7,481.91

1,28,836

6%

* April, 2013 June, 2013

The contribution of SEZ exports during the last three years and the current financial year are as under:

Financial Year

Physical Exports from SEZs (Value  in Rs. Crore)

Growth Rate

(over previous year)

2010-2011

3,15,868

43.11%

2011-2012

3,64,478

15.39%

2012-2013

4,76,159

31%

2013-2014

1,13,299 (as on 30th June, 2013)

– 4.25%

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. D.Purandeswari in a written reply in the Lok Sabha.

Tags: Domestic Tariff AreaExportFiscal yearLok SabhaMinister of StateSEZSpecial Economic ZoneState Government

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