Cement supplies to units in special economic zones (SEZ) can continue unimpeded, with the Commerce Ministry now clarifying that the recently imposed ban on cement exports will not apply for such supplies.
The Government had banned cement exports to improve supplies within the domestic market and stem price increase here.
Official sources said that the Director General of Foreign Trade (DGFT) has now issued an executive order, stating that the cement export restriction will not apply to supplies from domestic tariff area (DTA) to units in SEZs or SEZ developers/co-developers for use within the SEZs.
For customs purposes, SEZs are considered as foreign territories.
A blanket ban on cement exports had created doubts among SEZ developers as to whether cement supplies would be allowed to units in SEZs.
Soon after the annual supplement to the Foreign Trade Policy was announced, the Union Commerce and Industry Minister, Mr Kamal Nath, had assured SEZ developers that the ban on cement exports would not apply on supplies to SEZ units.