Physical Export for DTA sales by 100% EOU

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When any 100% EOU (A) sells the goods to another EOU (B) which inturn exports, can such sale be considered as FOB value to get the DTA Sales benefit to first unit (A)? Can this be considered as physical export to unit A. When this type of sale is acceptable for NFE calculation, I am not sure whether the same can be considered as physical export. Can some one please answer this. Thanks in advance

Replies (9)

PRASSANNA JI,

AS PER FOREIGN TRADE POLICY,2009-2014

"PARA NO.6.13 "

(a) transfer of manufactured goods one EOU to another EOU / EHTP/STP/BTP unit to another EOU/EHTP/STP/BTP UNIT ia allowed with prior intimation to concerned DEVELOPMENT COMMISSIONER (DC) & Custom Authorities , Following procedures of inbond movement of goods , transfer of manufactured goods shall also be allowed from EOU/EHTP/STP/BTP UNIT  to a SEZ DEVELOPER OR unit following procedure prescribed in SEZ RULES 2006.

(b) capital goods may be transfered or given on loan to other EOU / EHTP/STP/BTP/ SEZ units with consent of concerned DC & CUSTOM AUTHORITIES.

(c) goods supplied by one unit of EOU / EHTP/STP/BTPto another unit shall be treated as imported goods for second unit for payment of duty, ON DTA SALE BY SECOND UNIT.

THX

Sir, Thanks for the reply. It is not the movement of the goods. It is the sale. Can that sale is considered as a Physical Export to avail the benefit.

prassanna ji,

AS PER FOREIGN TRADE POLICY, 2009-2014

"PARA NO.6.10"

An EOU /EHTP/STP/BTP/ UNIT MAY EXPORT GOODS MANUFACTURED / SOFTWARE DEVELOPED BY IT THROUGH ANOTHER EXPORTER OR ANOTHER EOU/EHTP/STP/BTP& SEZ UNIT SUBJECT TO CONDITIONS MENTIONED IN para 6.18 of HAND BOOK OF POLICY PROCEDURES (VOL-2009-14)

in view of above No Physical Export to avail the benefit.

thx

Dear Ramesh ji,

As per the para 3.11.2 of the Foreign Trade Policy, the software and ITES exporters are required to register themselves with the Electronics and Computer Software Export Promotion Council (ESC).

Is this registration mandatory for STPI Units also?

Thanks and Regards.

YES SIR,

BECAUSE AS PER F.T.P.,  THE EXPORTER WILL NOT AVAIL ANY EXPORT INCENTIVE  

FOR MORE INFO:-

https://www.blr.stpi.in/pdf/Procedure_Registration_cum_MembershipCertificate_RCMC.pdf

Dear Ramesh ji,

Is it possible for me to talk to you? You can also call me on 09810743965.

Thanks & Regards,

HI

Please clarify on this.

we are 100% Eou, now we are ready to make dta sales. what are the procedures has to follow and what are the duty calculation have apply on these sales.???????/

It is an interstate sales, CST will applicable.

link is for more info:

/forum/dta-sales-procedure-for-100-eou-unit-104108.asp

https://www.cbec.gov.in/customs/cs-circulars/cs-circulars04/54-2004-cus.htm

 

your duty will be calculated as aggregate of all duties like at the time of import from out of india.

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