Cement export ban not applicable to SEZ units
The government on Wednesday said ban on export of cement will not be applicable to sale of the building material to units in Special Economic Zones from the Domestic Tariff Area.
By PTI |
NEW DELHI: The government on Wednesday said ban on export of cement will not be applicable to sale of the building material to units in Special Economic Zones from the Domestic Tariff Area, considered as deemed exports.
"Cement is not permitted to be exported. However, this restriction shall not apply to supplies of cement from Domestic Tariff Area to units in the SEZs, SEZ developers and co-developers for use within the zone only," the Directorate General of Foreign Trade said in a notification.
The government had last week banned cement exports as a move to bridge the demand-supply gap in the sector and check rising prices. Commerce and Industry Minister Kamal Nath had however said the ban will not impact SEZ units.
SEZs are considered to be bonded territories by customs authorities. DTA is the area within the country where normal tariffs apply. These do not include SEZs, which are deemed as foreign territory for tax purposes. Sales from DTA to the zones are treated as deemed exports.
"Cement is not permitted to be exported. However, this restriction shall not apply to supplies of cement from Domestic Tariff Area to units in the SEZs, SEZ developers and co-developers for use within the zone only," the Directorate General of Foreign Trade said in a notification.
The government had last week banned cement exports as a move to bridge the demand-supply gap in the sector and check rising prices. Commerce and Industry Minister Kamal Nath had however said the ban will not impact SEZ units.
SEZs are considered to be bonded territories by customs authorities. DTA is the area within the country where normal tariffs apply. These do not include SEZs, which are deemed as foreign territory for tax purposes. Sales from DTA to the zones are treated as deemed exports.
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