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

Clarification on whether DTA goods can be supplied to SEZs via third parties under Notification No 42/2001-CE (NT). A query was raised regarding whether goods from the Domestic Tariff Area (DTA) can be supplied to a Special Economic Zone (SEZ) through a third party. The response clarified that SEZs, despite being in India, are considered foreign territory, and exports to SEZ units are treated as physical exports. This process is governed by Notification No 42/2001-CE (NT) dated 26.06.2001, which permits CT-1 exports.