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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

Kaveri Exports, an SEZ Unit, ships finished goods to a buyer in Dubai. Which statement correctly reflects the SEZ Act, 2005 on duties for this export?

The Unit is entitled to exemption from any duty of customs on goods exported from the SEZ to any place outside India. The exemption covers both goods exported and services provided from the SEZ or Unit, so a shipment to Dubai qualifies.

  1. ACustoms duty is payable but at a concessional rate
  2. BThe Unit is entitled to exemption from any duty of customs on goods exported from the SEZ to any place outside IndiaCorrect
  3. CExemption is available only for services, not goods
  4. DExemption is available only if the goods are first moved to the Domestic Tariff Area

Explanation

Section 26(1)(b) exempts from customs duty goods exported from, or services provided from, an SEZ or Unit to any place outside India. Option C is wrong because the clause covers goods as well as services.

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