G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods cleared from [OLD produced or manufactured] in a special economic zone and brought to any other place in India in accordance with the provisions of the Special Economic Zones Act, 2005 (28 of 2005) and the Special Economic Zones Rules, 2006 [OLDthe Foreign Trade Policy 2004-2009], from the whole of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975):

(In the notification has been subsitutted vide  CUS NTF NO. 18/2011 DATE 01/03/2011)

Provided that no such exemption shall be applicable if such goods, when sold in domestic tariff area, are exempted by the State Government from payment of sales tax or value added tax.

(Second proviso has been omitted vide CUS NTF NO. 19/2007 DATE 27/02/2007)

[OLD Provided further that no such exemption shall be applicable to the following goods, namely: -

(a) Microprocessor for computer, other than mother boards;
(b) Floppy disc drive;
(c) Hard disc drive;
(d) CD-ROM drive;
(e) DVD Drive;
(f) USB Flash memory;
(g) Combo drive
(h) Cellular Phones, and
(i) Radio trunking terminals.]

(Second proviso to this Notification was leviable during the period commencing on the 21st day of February, 2007 and ending with the 26th day of February, 2007 vide CUS NTF NO. 92/2007 (NT) DATE 11/09/2007)

Explanation.- For the purposes of this notification, “special economic zone” means the special economic zones notified by the Government of India, under section 4 of the Special Economic Zones Act,2005(28 of 2005) [OLDsection 76A of the Customs Act, 1962 (52 of 1962)].

(In the notification para, proviso & Explanation has been substituted vide CUS NTF NO. 16/2007 DATE 21/02/2007)

[F.No. 354 /40 / 2005-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India