Supply of duty free goods

We are MNC manufacturers, located in DTA. One of our reputed customet also located in DTA. They want one of Raw material from us without any Tax (Duty free) as they are going to use the raw material for export. We supply material to SEZ, EOU customer under Advance License scheme. But in this case we clearly explained that we cannot supply raw material to DTA unit.

Since we have to import this material from our affliates in Germany or China. Is there any posiblity for keeping the material in Duty free bonded warehouse and supply raw material to DTA unit for export to avoid the tax levy.

Replies (1)

Supplies from the DTA to a SEZ unit or developer without payment of central excise duty shall be on the cover of AREA, as is the case for normal exports out of India, i.e. under a bond or undertaking executed by the DTA supplier with the jurisdictional central excise officer.

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