Section 9 in The Special Economic Zones (Customs Procedures) Regulations, 2003
9. Re-import or replacement or re-export of goods.
(1)The zone unit shall be allowed to re-import the goods exported and found to be defective or damaged by the overseas buyer or in the case of failure of the buyer to take delivery of the goods, subject to the procedure as mentioned in regulation 4 and subject to the following conditions, namely:-(i)identity of goods is established at the time of re-import ; and(ii)goods are re-imported within a period of one year from the date of export.(2)Where the goods imported by the zone unit are found to be defective or damaged or found to be otherwise unfit for use and suppliers agree to replace such defective or damaged or unfit for use goods, then such goods received as free replacement shall be allowed admission in the zone by way of import or replacement through the authorized dealer of the overseas supplier in India, subject to the following conditions, namely:-(i)the goods so found to be defective or damaged or otherwise unfit for use may be re-exported later on; or(ii)where the overseas supplier of such goods does not insist for re-export of such goods, the re-export of the same shall not be insisted provided such goods are either destroyed with the permission of proper officer, or shall be cleared into domestic tariff area on payment of duty as if cleared for home consumption.[10. Procurement of goods by zone unit or developer from domestic tariff area. - (1) The zone unit or developer, as the case may be, may procure any goods from domestic tariff area for carrying out authorised operation subject to the following conditions, namely:-(i)the domestic tariff unit supplying the goods to the zone unit or developer, or the zone unit or developer on behalf of the domestic tariff area unit, as the case may be, shall file a bill of export giving therein complete description, model, make, specifications, nature of goods such as capital goods, raw materials, spares, consumables, with specially stamped endorsement as "special economic zone cargo" alongwith invoice, packing list and purchase order for noting and assessment of the bill of export in the zone;(ii)the bill of export shall be assessed by the customs officer in the zone;(iii)the assessed bill of export shall be submitted to the proper officer having jurisdiction over the domestic tariff area unit and the same shall be treated as permission for transfer of goods to the zone;(iv)the domestic tariff area unit supplying goods to the zone unit or the developer, as the case may be, shall be allowed to remove the goods on the cover of ARE-I and the assessed bill of export, giving therein complete description, model, make, serial number, specifications etc.;(v)the goods so brought to the zone may be allowed admission into the zone on the basis of assessed of bill of export and ARE-I and a copy of bill of export and ARE-I, with an endorsement that goods have been admitted in full into the zone, shall be forwarded to the Central Excise Superintendent having jurisdiction over the domestic tariff area unit within forty-five days, failing which the Superintendent shall raise demand of duty against the domestic tariff area unit;(vi)where domestic tariff area unit or zone unit, on behalf of such domestic tariff area unit, has filed a bill of export under claim of duty drawback or duty entitlement passbook scheme and the domestic tariff area unit does not intend to claim duty drawback or duty entitlement passbook scheme credit, a disclaimer to this effect may be given to the zone unit, and on the basis of such disclaimer given by the domestic tariff area unit, duty drawback or duty entitlement passbook scheme credit may be claimed by the zone unit;(vii)the proper officers in the zone shall assess the bill of export in the same manner as it is assessed in the case of export of goods under claim of duty drawback or duty entitlement passbook scheme credit or no claim, as the case may be, and instruction issued under respective export promotion scheme shall apply mutatis mutandis in respect of these goods ; and valuation of such goods shall be done in terms of section 14 of the Act;(viii)before allowing admission of such goods in to the zone, the goods shall be examined by the customs officer of the zone in respect of description, quantity, marks, model etc. given in the ARE-I and bill of export, invoice and packing list and also as per the examination norms laid down in respect of export goods and instruction issued by the Board in this behalf from time to time;(ix)the duty drawback or duty entitlement passbook scheme credit against such supply of goods by domestic tariff area unit to the zone unit or to the developer shall be admissible only when the payment for such supply of goods to the zone unit is received in freely convertible foreign currency;(x)a copy of the bill of export and ARE-I with endorsement of zone customs authorities on it to the effect that goods have been admitted in full in the zone shall be treated as proof of export;(xi)where the goods are intended to be procured by the zone unit from a trader or merchant exporter, the procedure as stated hereinabove shall apply mutatis mutandis, including filing of bill of export except that the goods shall not be required to be brought to the zone under the cover of ARE-I and assessed copy of bill of export shall not be required to be submitted to the jurisdictional Central Excise authority for removal of goods, from the premises of the trader or merchant exporter.]
