9.9
- Document type
- Policy
- Dated
- Category
- Exim Policy (upto 31/03/2001)
DTA Sales
The entire production of EOU/EPZ/EHTP/STP units shall be exported
subject to the following:
(a) Unless specifically prohibited in the LOP/LOI, rejects may be
sold in the domestic tariff area (DTA), on prior intimation to
the customs authority. Such sales shall be counted against DTA
sale entitlement under para 9.9(b) of the Policy. Sale of rejects
shall be subject to payment of duties as applicable to sale under
para 9.9(b).
(b) DTA sale up to 50% of the FOB value of exports may be made
subject to payment of applicable duties and fulfillment of
minimum NFEP prescribed in Appendix 1 of the Policy. No DTA sale
shall be permissible in respect of motor cars, alcoholic liquors
and such other items as may be stipulated by Director General of
Foreign Trade by a Public Notice issued in this behalf.
(c) Deleted
(d) Deleted
(e) EOU/EPZ/EHTP/STP units may be permitted to sell finished products
which are either freely importable under the Policy, or against
other import licenses, in the DTA, over and above the levels
permissible under sub paragraph (b) above, against payment of
full duties, on annual basis, provided they have achieved the
stipula ted NFEP and export performance.
(Above sub para (e) has been added vide Ntf. no. 27/98, Dt. 16/9/99)
(f) Deleted
(g) For services, including software units, sale in the DTA in any
mode, including on-line data communication, shall be permissible
up to 50% of FOB value of exports and/or 50% of foreign exchange
earned, where payment for such services is received in free
foreign exchange.
(h) Items included as by-products in the LOP/LOI may be sold in the
DTA on payment of applicable duty.
Note:- In the case of units manufacturing electronics hardware and software,
the NFEP and DTA sale entitlement shall be reckoned separately for hardware and
software.