applicability of CST on clearance from Foreign Trade Warehousing Zone

[Ramaiah Swamy]

good evening friends,

Foreign Trade and Warehousing Zone ( FTWZ) is like a special economic zone.  Any person or entity can store the goods in the said  FTWZ.  Even foreign entities can store the goods in their name.  The goods can be sold to a local party against applicable customs duty or can be transferred bond to bone. 

In the above background, can I have clarificaiton on the following points please?

1.  Whether the storage of goods in FTWZ will be during the course of import ?

2.  Whether the transfer of goods from FTWZ to a customs bonded warehouse will also be during the course of import ?

3.  Whether the sale  from FTWZ  to a local customer will be a CST chargeable transaction?

Thanks and regards,

Ramaiah swamty

AI Summary

FTWZ treated as foreign territory: transfers carry export/import character and customs duty applies, not CST.
FTWZ is treated as foreign territory; transfers from DTA to FTWZ are exports and transfers from FTWZ to DTA are imports in the purchaser's hands. Sales from FTWZ to a local customer have import character and attract customs duty liability; such sales are not chargeable to Central Sales Tax. A subsequent question asks whether previously duty paid goods stored in FTWZ change duty consequences on direct sale, but that issue remains unresolved in the discussion.