DTA Sales and Supplies

7.8

(a) SEZ unit may sell goods, including by-products, and services in DTA in accordance with the import policy in force, on payment of applicable duty.

(b) DTA sale by service/trading unit shall be subject to achievement of positive NFE cumulatively. Similarly for units undertaking manufacturing and services/ trading activities against a single LOP, DTA sale shall be subject to achievement of NFE cumulatively.

(c) The following supplies effected in DTA by SEZ units will be counted for the purpose of fulfillment of positive NFE:

(i) Supplies effected in DTA in terms of Chapter 8 of the Policy.

(ii) Supplies made to bonded warehouses set up under the Policy and/or under Section 65 of the Customs Act.

(iii) Supplies to other EOU/SEZ/ EHTP/ STP/BTP units provided that such goods or services are permissible to be procured/rendered by these units.

(iv) Supplies against special entitlement of duty free import of goods.

(v) Supplies of goods and services to such organizations which are entitled for duty free import of such items in terms of general exemption notification issued by the Ministry of Finance.

(vi) Supply of services (by services units) relating to exports paid for in free foreign exchange or for such services rendered in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by RBI.

(vii) Supplies of Information Technology Agreement (ITA-1) items and notified zero duty telecom/electronic items indicated in the Appendix 14-IC of the Handbook.