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Sales by a sez unit in dta

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(Querist)
21 August 2016 Sir,

One of our customers is supplying processed yarn in DTA from Kandla SEZ. He has a processing unit in Kandla SEZ. Will you please clarify whether such type of sales can be grouped under export sales. Customer wants concessional credit facility for availing pre-shipment credit those applicable to Export Credit.
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Dr.RAMAKRISHNA. C

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Dr.RAMAKRISHNA. C (Expert)
22 August 2016 Dear Dash,supply from DTA to SEZ is physical export. Pre-shipment credit or packing credit is a facility extended by commercial banks to exporters to enable them to execute the export order. No concessional rate of interest.
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