sale of goods to DTA from SEZs in foreign currency

[REDDIPALLI SRIKANTH]

Dear All,

Please clarify, Can SEZ unit sell the goods to DTA in foreign Currency and can consider for NFE.

Do SEZ unit need any permission from Development commissioner. for sale of such goods to DTA?

[KASTURI SETHI]

DEAR SH.REDDIPALLI SRIKANTH,

Yes. Under Rule 47 of SEZ Rules, 2006 SEZ unit can sell the goods to DTA in foreign currency and can be considered for NFE under Rule 53 of SEZ Rules, 2006 subject to the condition that foreign exchange is received from the Exchange Earners Foreign currency account of the DTA buyer. No permission from the Development Commissioner is required.

[Suryanarayana Sathineni]

The views expressed by Mr. Seth are clear and need no intervention

Regards

Surya

[KASTURI SETHI]

Sh.Syrya Naryana Ji,

Thanks a lot Sir.

AI Summary

Sale in foreign currency: SEZ units can sell to DTA with EEFC receipt counting as NFE, no permission required. An SEZ unit may sell goods to the DTA in foreign currency and have such sales treated as NFE provided the foreign exchange is received into the DTA buyer's Exchange Earners Foreign Currency account; no permission from the Development Commissioner is required.