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Domestic Tariff Area (DTA) or Domestic Tariff Zone (DTZ) means an area withinIndia that is outside theSpecial Economic Zones and EOU/EHTP/STP/BTP.[1]
The units operating under certain specific schemes such asEPZ/SEZ/EOU are expected to carry out their activities within acustoms bonded area. Any area which is not under thejurisdiction of a custom bonded area is called a Domestic Tariff Area.[2]
Supplies from the DTA to a SEZ unit or developer without payment of centralexcise duty shall be on the cover of ARE-1,[clarification needed] as is the case for normalexports out ofIndia, i.e. under a bond orundertaking executed by the DTA supplier with thejurisdictional centralexcise officer.[3]
A bill of export needs to be filed by the DTA supplier or the unit/developer on behalf of DTA to the authorized officer for assessment before the arrival of goods.[4]
If the goods arrive before the bill of export is filed, they shall be kept in a place meant for keeping such goods and shall be released only after the assessment of the bill of export.
A copy of ARE-1 and the bill of export need to be forwarded to the central excise officer having jurisdiction over the DTA within 45 days.
The developer or unit can claim drawback or a duty entitlement pass book if the bill of export has been filed under it and if the unit or developer does not intend to claim, a disclaimer to this effect shall be given to the DTA supplier for claiming such benefits, provided theDuty Entitlement Pass Book DEPB scheme may be claimed by the DTA supplier.
The unit or developer may procure goods from the DTA without availing himself of exemptions, drawbacks and concessions on the basis of an invoice or transport document issued by thesupplier.
A SEZ unit or developer may also procure:
The goods declared into a SEZ shall be used by the Unit or the Developer only for carrying out the authorized operations.
The goods can be utilized for purposes other than for the authorized operations or if the Unit or Developer fails to account for the goods as provided under theserules, duty shall be chargeable on such goods as if these goods have been cleared for homeconsumption.
If the unit is unable to utilize the goods imported or procured from the Domestic Tariff Area, it may export the goods or sell the same to another Unit or to anExport-oriented industrialization Unit orElectronics Technology Park Unit orSoftwareTechnology Park Unit orBiotechnology Park Unit, without payment of duty, or dispose of the same in the DomesticTariff Area on payment of applicable duties on the basis of animportlicense submitted by the Domestic Tariff Area buyer
All documents for acceptance of goods into and out of a SEZ should be filed before the Authorized Officer of Customs.
A Unit can sell goods and services including rejects orwastes or scraps or remnants or broken diamonds or by-products arising during themanufacturing process or in connection therewith, in the Domestic Tariff Area on payment ofCustoms duties orExcise Duties, as the case may be.
A SEZ Unit on behalf of Domestic Tariff Areabuyer shall file a Bill of Entry for home consumption giving a complete description of the goods and/or services, along with an invoice and packing list with the Authorized Officers.
A Unit may remove capital goods to Domestic Tariff Area after use in a SEZ on payment of duty.
Goods supplied by a Unit to Domestic Tariff Area on payment of duty may be brought back to the Unit for the purpose of repair within a period of six months from the date ofclearance.
The Unit may temporarily remove the following goods to a Domestic Tariff Area without payment ofduty: