Custom duty

[Pradeep Ahuja]

Sales from SEZ to a DTA unit are imports for the DTA unit as per customs rules, as full duty is paid.Is this also the view by RBI and banking regulations?

[Surender Gupta]

For the purpose of sale and purchase of goods, the scheme of SEZ is envisaged. Since SEZ are located in India, normal banking procedure would be followed.

The banks might not accept it. It is only on the SEZ act that envisage such imports. As regards bank it is only a normal purchase

AI Summary

SEZ sales treated as imports; banking acceptance may follow normal domestic procedures or be declined.
Sales from a Special Economic Zone to a Domestic Tariff Area unit are treated as imports for the DTA unit under customs rules, attracting full customs duty; banking practice may follow normal banking procedures because SEZs are located in the country, but banks might not accept the import character and could treat the transactions as ordinary domestic purchases.