Domestic Tariff Area
Domestic Tariff Area” means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones
Procedure for the procurement from the domestic tariff area
The supplies from the DTA to SEZ unit or developer without payment of central excise duty shall be on the cover of ARE1, as in case of normal exports out of India i.e. under bond / undertaking, executed by the DTA supplier with the jurisdictional Central excise officer.
A bill of export needs to be filed by the DTA supplier or the unit/developer on behalf of DTA to the authorized officer for assessment before the arrival of goods.
The goods however if arrives before the arrival it shall be kept in a place meant for keeping such goods and shall be released only after the assessment of the bill of export.
A copy of ARE-1 and bill of export needs to be forwarded to the central excise officer having jurisdiction over the DTA within 45 days.
The developer or unit can claim drawback or duty entitlement pass book if the bill of export has been filed under it and if the unit or developer does not intend to claim, a disclaimer to this effect shall be given to the DTA supplier for claiming such benefits, provided the DEPB Scheme may be claimed by the DTA supplier.
The unit or developer may procure goods from DTA without availing exemptions, drawbacks and concessions on the basis of invoice or transport document, issued by the supplier.
A sez unit or developer may also procure goods from international exhibitions held in India
A sez unit or developer may also procure goods or services without payment of duty from an EOU/STP/BTP.
A sez unit or developer may also procure goods or services from another unit located in the same or any other SEZ.
Utilization of goods procured from DTA Unit
The goods admitted into a Special Economic Zone shall be used by the Unit or the Developer only for carrying out the authorized operations.
The goods admitted are utilized for purposes other than for the authorized operations or if the Unit or Developer fails to account for the goods as provided under these rules, duty shall be chargeable on such goods as if these goods have been cleared for home consumption.
If the unit is unable to utilize the goods imported or procured from Domestic Tariff Area, it may export the goods or sell the same to other Unit or to an Export Oriented Unit or Electronics Technology Park Unit or Software Technology Park Unit or Bio-technology Park Unit, without payment of duty, or dispose off the same in the Domestic Tariff Area on payment of applicable duties on the basis of an import license submitted by the Domestic Tariff Area buyer
All documents for admission of goods into and out of Special Economic Zone shall be filed before the Authorized Officer of Customs.
Sales in Domestic Tariff Area
A Unit may sell goods and services including rejects or wastes or scraps or remnants or broken diamonds or by-products arising during the manufacturing process or in connection therewith, in the Domestic Tariff Area on payment of Customs duties.
Procedure for Sale in Domestic Tariff Area
Domestic Tariff Area buyer shall file Bill of Entry for home consumption giving complete description of the goods and/or services, along with invoice and packing list with the Authorized Officers.
Domestic Tariff Area removals
A Unit may remove capital goods to Domestic Tariff Area after use in Special Economic Zone on payment of duty
Goods supplied by a Unit to Domestic Tariff Area on payment of duty may be brought back to the Unit for the purpose of repair within a period of six months from the date of clearance.
Temporary Removals to Domestic Tariff Area
The Unit may temporarily remove following goods to Domestic Tariff Area without payment of duty
Capital goods and parts thereof for repairs and return thereof;
Goods for display, export promotion, exhibition and return thereof;
Goods for job work, test, repair, refining and calibration and return thereof;
Laptop or notebook computers or video projection systems for use by authorized employees of a Unit or developer;
Any other goods with the prior approval of the Authorized Officer