DTA sale - CBEC's Customs Manual 2023 - Customs

15. DTA sale: 15.1 The goods manufactured by EOUs are allowed to be sold in Domestic Tariff Area (DTA) upon fulfilment of certain conditions in terms of Para 6.8(a) of the FTP read with Para 6.14 and Appendix 6G of the HBP. 15.2 The EOUs (other than gems jewellery units) are allowed to sell goods (including rejects, scrap, waste, remnants and by-products) in DTA on payment of applicable central excise duty or applicable GST alongwith reversal of Basic Customs Duty on inputs used in finished goods (including by-products, rejects, waste and scraps arising in the course of production, manufacture, processing or packaging of such goods) if they are NFE positive. Gems and Jewellery units may sell up to 10% of FOB value of export of preceding year subject to fulfilment of positive NFE. 15.3 For a newly set up unit, Advance DTA sale is also allowed on the basis of the projection of export in the first year. For pharmaceutical units, advance DTA sale is allowed on the basis of the projection of export in the first two years. The advance DTA sale is to be adjusted within two years from the date of commencement of production by an EOU. However, in case of pharmaceutical units, this period for adjustments is three years. For this purpose, a separate bond is to be executed with the Assistant/ Deputy Commissioner to cover the difference of duty paid on the advance DTA sale and the duty payable on such goods. 15.4 The DTA sale facility is not available for certain products namely, pepper pepper products, marble and such other items as are notified from time to time. This facility is also not available to units engaged in the activities of packaging/ labelling/ segregation/ refrigeration/ compacting/ micronisation/ pulverization/ granulation/ conversion of monohydrate form of chemical to anhydrous form or vice versa. 15.5 Specified supplies of goods in DTA as provided in Para 6.09 of FTP and are counted for fulfilment of positive NFE, are also allowed on payment of applicable duties/taxes leviable on these goods.