EOUs Liable for Customs Duty on DTA Sales; GST Applies with Reversal of Basic Customs Duty; SEZ Sales Count as Exports

Export Oriented Units (EOUs) are subject to duty liability on Domestic Tariff Area (DTA) sales, equating to the aggregate of Customs duties applicable to similar imported goods. The duty value is calculated as if the goods were imported, and GST applies to DTA sales with the reversal of Basic Customs Duty and applicable cesses. EOUs, excluding Gem and Jewellery units, can sell goods in DTA upon fulfilling positive Net Foreign Exchange (NFE) obligations. Sales to Special Economic Zones (SEZ) are included in FOB export value if paid in foreign exchange. New EOUs can make advance DTA sales up to 50% of estimated exports.