TaxTMI 
TaxTMI 
Supplies to SEZ
K Balasubramanian
Kindly clarify as to whether supplies to SEZ are treated as physical exports or deemed exports.
Supplies to SEZs: Are They Physical or Deemed Exports? Customs and FTP Perspectives Explained. A query was raised regarding whether supplies to Special Economic Zones (SEZ) are classified as physical exports or deemed exports. One respondent clarified that from a customs perspective, supplies to SEZs are considered physical exports, although they occur within India. Another stated that under Foreign Trade Policy (FTP) and customs, such supplies are treated as deemed exports. A third contributor explained that SEZs are deemed outside the customs territory, and supplies from the Domestic Tariff Area (DTA) are treated as physical exports, requiring proof of export within 45 days, governed by specific customs and excise notifications. (AI Summary)