SEZ supplies from DTA

[Vinay Mishra]

whether goods from DTA be supplied to SEZ through third party, reply with authority

[Snehal Kulkarni]

Special Economical Zones although located in India, are also regarded as Foreign Territory and any export to SEZ units is treated as Physical Export for the purposes of benefits

The export procedure is governed by the Notification No 42/2001-CE ( NT) dated 26.06.2001. Accordingly, the CT-1 Export are also permissible.

AI Summary

SEZ treated as foreign territory: DTA supplies to SEZ qualify as physical exports under export procedure requirements. Special Economic Zones are treated as foreign territory and shipments to SEZ units are regarded as physical exports; the export procedure referenced in the discussion permits CT 1 export procedures for movements from the Domestic Tariff Area to SEZ units, allowing supplies (including through third parties) subject to compliance with the prescribed export formalities and documentation.