STPI Unit - Transfer of Goods to DTA Units Permissible

[rajashekharaiah AM]

Can an STPI unit import goods (e.g., laptops, components, etc.) and subsequently sell/transfer them to another domestic group entity on a commercial basis?

If yes, can this be treated as a DTA sale, and what approvals/duty implications would apply? Also, are there any restrictions specifically for imported goods and potential compliance risks in such arrangement under STPI/FTP? Since STPI units are 100% EOU and domestic sales are not allowed?

AI Summary

Domestic Tariff Area sales by STPI units depend on positive net foreign exchange, duty compliance, and whether goods were manufactured or imported as such.
An STPI unit may make limited Domestic Tariff Area clearances, including transfer to another domestic group entity, if the transaction falls within FTP Chapter 6, positive net foreign exchange requirements, entitlement limits, and applicable duty and tax payment. However, a distinction is made between finished goods manufactured by the unit and imported goods sold as such. While DTA sale may be permissible for manufactured goods, direct resale of duty-free imported laptops or components without authorized use is treated as a compliance risk and may violate STPI/EOU conditions.