Exemption from Special Additional Duty of Customs (SAD) on goods cleared from the SEZ / FTWZ into the DTA – Clarification – Regarding.

SAD exemption on SEZ/FTWZ clearances not available for stock transfers to DTA for self-consumption, therefore payable.

The circular clarifies that the SAD exemption for goods cleared from SEZ/FTWZ into the DTA is conditional on those goods not being exempt from sales tax/VAT when sold in the DTA. Stock transfers from SEZ/FTWZ to DTA units for self-consumption are not subject to sales tax/VAT and therefore do not meet the condition for exemption; consequently SAD is leviable on such transfers. Field formations should issue trade/public notices and report implementation difficulties to the Board.