Govt allows export of biofuels from special economic zones and export-oriented units

The government has allowed export of biofuels from special economic zones (SEZs) and export-oriented units (EoUs) with certain conditions, according to a notice of the directorate general of foreign trade

Press Trust of India February 06, 2019 14:39:38 IST
Govt allows export of biofuels from special economic zones and export-oriented units
  • In August 2018, the government imposed restrictions on the export of biofuels for non-fuel purposes

  • After this restriction, exporters operating from SEZs and EoUs made representations to remove this prohibition stating they only use imported material for export of the final product

  • Before August 2018, exports of these items were allowed without any restrictions

New Delhi: The government has allowed export of biofuels from special economic zones (SEZs) and export-oriented units (EoUs) with certain conditions, according to a notice of the directorate general of foreign trade.

In August 2018, the government imposed restrictions on the export of biofuels for non-fuel purposes.

After this restriction, exporters operating from SEZs and EoUs made representations to remove this prohibition stating they only use imported material for export of the final product.

They also informed government authorities that SEZ units have been granted a letter of approval for export of biofuels and EoU units have obligations to fulfil under an export promotion scheme.

Govt allows export of biofuels from special economic zones and exportoriented units

Representational image. Reuters.

"Considering the hardship faced by the trade community and the fact that production of biofuels in EoU/SEZ would be from the imported feedstock, therefore, it would not impact the domestic production/consumption. Hence, the restriction as applicable to DTA (domestic tariff area) may not be extended to EoU/SEZ," the DGFT notice said.

SEZs and EoUs are export-oriented units outside the ambit of domestic customs laws.

"Members of trade and industry are informed that export of biofuels for non-fuel purposes from EoU/SEZ will be regulated" under certain rules of SEZs and foreign trade policy, it added.

It said that the feedstock for production of bio-fuel for export from these areas should be from imported sources only.

Bio-fuels include ethyl alcohol, petroleum oil and oils obtained from bituminous minerals, biodiesel and mixtures.

Before August 2018, exports of these items were allowed without any restrictions.

India exported ethyl alcohol worth $276.35 million in 2017-18 as against $224 million in the previous fiscal.

Similarly, export of petroleum oil and oils obtained from bituminous minerals increased to $8 million in 2017-18 from $0.54 million in the previous fiscal.

Biodiesel and mixtures shipments rose to $5.36 million in the last financial year from $2.73 million in 2016-17.

Last year, the directorate had also imposed a restriction on import of biofuels including ethyl alcohol and other denatured spirits, bio-diesel, petroleum oils and oils obtained from bituminous minerals other than crude.

Updated Date:

also read

Government launches 'SEZ India', a mobile app for Special Economic Zone information
News & Analysis

Government launches 'SEZ India', a mobile app for Special Economic Zone information

The government has launched a mobile app called 'SEZ India' that provides detailed information about the country's special economic zones, an official statement said on Sunday.

Does death of SEZ policy mean biggest real estate scam?
Economy

Does death of SEZ policy mean biggest real estate scam?

The government has lost interest in the Special Economic Zone policy, which it had devised in 2005 in order to boost economic activity in the country.

Rajya Sabha passes bill to amend SEZ law; Piyush Goyal says move will have large impact on investments, jobs
India

Rajya Sabha passes bill to amend SEZ law; Piyush Goyal says move will have large impact on investments, jobs

A Bill that seeks to allow trusts to set up units in special economic zones (SEZs) by amending the SEZ law was approved by Parliament on Thursday, with the government asserting these zones were an engine of growth and employment.