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DEBONDING OF SEZ UNIT

Debonding an SEZ unit is a complex process involving regulatory approvals, duty payments, asset revaluation, and compliance closure. Businesses often face challenges in managing documentation, tax implications, and smooth transition to the Domestic Tariff Area (DTA). SKMC Global provides end-to-end assistance in SEZ debonding by handling approvals, reconciliations, asset transfer, and compliance management. With our expertise, companies can minimize risks, save time and costs, and ensure a hassle-free exit from SEZ to DTA for sustainable growth.

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DEBONDING OF SEZ UNIT

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  1. DEBONDING OF SEZ UNIT Many SEZ units plan to shift operations or workforce to Domestic Tariff Areas (DTAs), requiring debonding of IT assets and infrastructure. However, the SEZ Act and Rules do not provide clear guidelines for duty-paid asset transfer, often treating such movement as import of used goods under FTP norms. Debonding is thus a regulated process where a unit exits the SEZ scheme and relinquishes associated benefits and obligations. CHALLENGES: Regulatory Approvals – Obtaining clearances from SEZ Development Commissioner, customs, GST, and other authorities can be time-consuming. Valuation of Assets – Determining fair market value of imported/procured capital goods and raw materials for duty and tax liability settlement is complex. Customs & Duty Payment – Units must pay applicable customs duties, IGST, and other levies on unutilized goods, which can create financial strain. Compliance & Documentation – Extensive paperwork, reconciliations, and audits are required to demonstrate compliance with SEZ rules before exit. Pending Obligations – Fulfillment of export obligations, performance-linked criteria, and resolution of pending litigation or disputes may delay exit. Transfer of Assets & Liabilities – Managing movement of goods, IT assets, and infrastructure from SEZ to DTA (Domestic Tariff Area) while ensuring tax compliance is challenging. Employee & Business Continuity – Shifting operations outside SEZ may impact employee contracts, taxation benefits, and ongoing business operations. At SKMC Global simplifies the complex process of SEZ debonding by offering end-to- end support—from regulatory approvals and asset valuation to duty payment, documentation, and compliance closure. Our expertise ensures smooth transition to the Domestic Tariff Area (DTA) while minimizing risks, costs, and delays, enabling businesses to focus on growth. info@skmcglobal.com www.skmcglobal.com +91 989-125-5499

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