Duty-free imports for SEZs notified

NEW DELHI: The government has notified the long-awaited duty-free imports of inputs and materials by developers of special economic zones (SEZs) and set up a committee to approve such imports.
The notification comes almost one-and-a-half year after the government unveiled a comprehensive programme to encourage SEZs in the country to boost exports. The notification issued by the Central Board of Excise and Customs would allow such goods to be imported or procured from the domestic tariff area or public warehouse duty free.
The six-member committee which would approve such imports would be headed by the chief commissioner of customs/excise under whose jurisdiction the zone falls. The committee will give approval on the basis of guidelines formulated for this purpose. The duty-free benefit will be given only to those goods which are required for construction, development and maintenance of the zone.
In addition to this, developers of the SEZs will have to produce the approved construction plan and drawing, proof of ownership of the land, financial solvency of the developer from a leading bank and a list of the machinery required certified by an approved chartered engineer.
The committee will fix a time schedule for the commencement and completion of the construction of the SEZ, it said, adding that the committee would be allowed to condone any delay in the completion of the project.
It will meet every quarter to monitor the use of goods imported or procured by the developer as also to ensure that the duty-free goods are actually utilised for the purpose obtained.
Excise duty exemptions will be granted to the developers of these zones on fulfilment of certain conditions including permission by the development commissioner to develop, maintain and operate the SEZ.
The excise exemption will be applicable only on goods which have been authorised by the committee and would have to be stored in the premises appointed or licenced as a public or private warehouse.