Page 224 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

Q-870: Obligations of the units set up in SEZ
A-:870: The units set up in an SEZ must earn Positive Net Foreign Exchange by exporting the
goods manufactured in the units or by providing services from the units. The Positive Net
Foreign Exchange means, the foreign exchange earned in FOB terms must be more than the
CIF value of the goods imported by remitting foreign exchange and foreign exchange
remitted by the units for any other purpose relating to the unit or their products/services.
This obligation must be fulfilled within a period of five years from the date of
commencement of production.

In the event of failure to achieve the prescribed foreign exchange earnings, the unit is liable
to penal action.

Q-871: Valuation of goods cleared into DTA under SEZ
A-871: As per Rule 48 of the SEZ Rules, valuation of the goods and/or services cleared into
Domestic Tariff Area shall be determined in accordance with provisions of the Customs Act
and the rules made thereunder as applicable to goods when imported into India. If goods
procured from Domestic Tariff Area by a Unit are supplied back to the Domestic Tariff Area,
as it is or without substantial processing, such goods shall be treated as re-imported goods
and shall be subject to such procedure and conditions as applicable in the case of the normal
re-import of goods from outside India.

SPECIAL VALUATION BRANCH (SVB)
Q-872: The SVB order is valid for a period of
(i) 2 years
(ii) 3 years
(iii) 5 years

(iv) 10 years
A-872: ii - 3 years

STANDARD INPUT-OUTPUT NORMS (SION)
Q-873: Standard Input-Output Norms (SION) issued by
(i) Customs
(ii) DGFT
(iii) Department of Revenue
(iv) Central Government

A-873: ii – DGFT
SUMMON
Q-874: Explain the Central Board of Indirect Taxes and Customs guidelines on issue of summons
A-874: The following guidelines issued on summons by the Central Board of Indirect Taxes
and Customs:

(i) Power to issue summons is generally exercised by Gazetted Officers (Appraiser /
Superintendent), though higher officers also issue summons. Summons by
Appraiser/ Superintendent should also be issued after obtaining prior written

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