Domestic tariff area
Encyclopedia
Domestic Tariff Area or Domestic Tariff Zone (DTZ) means an area within India
that is outside the Special Economic Zone
s and EOU
/EHTP/STP/BTP.
The units operating under certain specific schemes such as EPZ/SEZ
/EOU
are expected to carry out their activities
within a customs
bonded area. Any area which is not under the jurisdiction
of a custom bonded area is called a Domestic Tariff Area.
, ie. under a bond
or undertaking
executed by the DTA supplier
with the jurisdictional central excise
officer.
A bill of export needs to be filed by the DTA supplier or the unit/developer on behalf of DTA to the authorized officer for assessment before the arrival of goods.
If the goods arrive before the bill of export is filed, they shall be kept in a place meant for keeping such goods and shall be released only after the assessment of the bill of export.
A copy of ARE-1 and the bill of export need to be forwarded to the central excise
officer having jurisdiction
over the DTA within 45 days.
The developer or unit can claim drawback or a duty entitlement pass book if the bill of export has been filed under it and if the unit or developer does not intend to claim, a disclaimer to this effect shall be given to the DTA supplier for claiming such benefits, provided the Duty Entitlement Pass Book DEPB Scheme
may be claimed by the DTA supplier.
The unit or developer may procure goods from the DTA without availing himself of exemptions, drawbacks and concessions on the basis of an invoice or transport
document issued by the supplier.
A SEZ unit or developer
may also procure
The goods can be utilized for purposes other than for the authorized operations
or if the Unit or Developer fails to account for the goods as provided under these rules
, duty
shall be chargeable on such goods as if these goods have been cleared for home consumption
.
If the unit is unable to utilize the goods imported or procured from the Domestic Tariff Area, it may export the goods or sell the same to another Unit or to an Export-oriented industrialization
Unit or Electronics
Technology Park Unit or Software Technology
Park Unit or Biotechnology
Park Unit, without payment of duty, or dispose off the same in the Domestic Tariff
Area on payment of applicable duties on the basis of an import
license
submitted by the Domestic Tariff Area buyer
All documents for acceptance of goods into and out of a SEZ should be filed before the Authorized Officer of Customs
.
or broken diamonds or by-products arising during the manufacturing
process or in connection therewith, in the Domestic Tariff Area on payment of Customs duties.
shall file a Bill of Entry for home consumption giving a complete description of the goods and/or services, along with an invoice and packing list with the Authorized Officers.
Goods supplied by a Unit to Domestic Tariff Area on payment of duty may be brought back to the Unit for the purpose of repair within a period of six months from the date of clearance
.
to a Domestic Tariff Area without payment
of duty
:
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
that is outside the Special Economic Zone
Special Economic Zone
A Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws...
s and EOU
EoU
EoU can be an acronym for:Names & Organizations*Eastern Oregon University*Encyclopedia of UkraineScience & Technology*EAP over UDP Extensible Authentication Protocol over User Datagram Protocol...
/EHTP/STP/BTP.
The units operating under certain specific schemes such as EPZ/SEZ
Special Economic Zone
A Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws...
/EOU
EoU
EoU can be an acronym for:Names & Organizations*Eastern Oregon University*Encyclopedia of UkraineScience & Technology*EAP over UDP Extensible Authentication Protocol over User Datagram Protocol...
are expected to carry out their activities
Task (project management)
In project management a task is an activity that needs to be accomplished within a defined period of time. An assignment is a task under the responsibility of an assignee which should have a start and end date defined. One or more assignments on a task puts the task under execution. Completion of...
within a customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
bonded area. Any area which is not under the jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
of a custom bonded area is called a Domestic Tariff Area.
Procedure for the procurement from the domestic tariff area
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 IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, ie. under a bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
or undertaking
Undertaking
Undertaking may refer to:* The task performed by a funeral director* In business, in particular in "EU English", the term is used interchangeably with Company, i.e. a business entity...
executed by the DTA supplier
Supplier
Supplier may refer to:*Manufacturer, uses tools and labor to make things for sale*Processor , converts a product from one form to another*Packager , encloses products for distribution, storage, sale, and use...
with the jurisdictional central excise
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
officer.
A bill of export needs to be filed by the DTA supplier or the unit/developer on behalf of DTA to the authorized officer for assessment before the arrival of goods.
If the goods arrive before the bill of export is filed, they shall be kept in a place meant for keeping such goods and shall be released only after the assessment of the bill of export.
A copy of ARE-1 and the bill of export need to be forwarded to the central excise
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
officer having jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
over the DTA within 45 days.
The developer or unit can claim drawback or a duty entitlement pass book if the bill of export has been filed under it and if the unit or developer does not intend to claim, a disclaimer to this effect shall be given to the DTA supplier for claiming such benefits, provided the Duty Entitlement Pass Book DEPB Scheme
Scheme
Scheme may refer to:* Scheme , a minimalist, multi-paradigm dialect of Lisp* Scheme , a concept in algebraic geometry* Scheme , a figure of speech that changes a sentence's structure-See also:...
may be claimed by the DTA supplier.
The unit or developer may procure goods from the DTA without availing himself of exemptions, drawbacks and concessions on the basis of an invoice or transport
Transport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...
document issued by the supplier.
A SEZ unit or developer
Developer
Developer may refer to:*Software developer, one who programs computers or designs the system to match the requirements of a systems analyst*Game developer, a person or business involved in game development, the process of designing and creating games...
may also procure
- Goods from international exhibitions held in IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
- Goods or services without payment of duty from an EOU/STP/BTP.
- GoodsGoodsGoods may refer to;*Good , physical product*Personal property, legal personal chattels...
or services from another unit located in the same or any other SEZ.
Utilization of goods procured from DTA Unit
The goods declared into a SEZ shall be used by the Unit or the Developer only for carrying out the authorized operations.The goods can be utilized for purposes other than for the authorized operations
Business operations
Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...
or if the Unit or Developer fails to account for the goods as provided under these rules
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
, duty
Duty
Duty is a term that conveys a sense of moral commitment to someone or something. The moral commitment is the sort that results in action and it is not a matter of passive feeling or mere recognition...
shall be chargeable on such goods as if these goods have been cleared for home consumption
Consumption (economics)
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently...
.
If the unit is unable to utilize the goods imported or procured from the Domestic Tariff Area, it may export the goods or sell the same to another Unit or to an Export-oriented industrialization
Export-oriented industrialization
Export-oriented Industrialization sometimes called export substitution industrialization or export led industrialization is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage...
Unit or Electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...
Technology Park Unit or Software Technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
Park Unit or Biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
Park Unit, without payment of duty, or dispose off the same in the Domestic Tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
Area on payment of applicable duties on the basis of an import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
license
License
The verb license or grant licence means to give permission. The noun license or licence refers to that permission as well as to the document recording that permission.A license may be granted by a party to another party as an element of an agreement...
submitted by the Domestic Tariff Area buyer
All documents for acceptance of goods into and out of a SEZ should be filed before the Authorized Officer of Customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
.
Sales in Domestic Tariff Area
A Unit can sell goods and services including rejects or wastes or scraps or remnantsRemnants
Remnants is a science fiction book series authored by K. A. Applegate between July 2001 and September 2003. It is the story of what happens to the survivors of a desperate mission to save a handful of human beings after an asteroid collides with the Earth...
or broken diamonds or by-products arising during the manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
process or in connection therewith, in the Domestic Tariff Area on payment of Customs duties.
Procedure for Sale in Domestic Tariff Area
A Domestic Tariff Area buyerBuyer
When someone gets characterised by their role as buyer of certain assets, the term "buyer" gets new meaning:A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for a firm, government, or organization...
shall file a Bill of Entry for home consumption giving a complete description of the goods and/or services, along with an invoice and packing list with the Authorized Officers.
Domestic Tariff Area removals
A Unit may remove capital goods to Domestic Tariff Area after use in a SEZ on payment of duty.Goods supplied by a Unit to Domestic Tariff Area on payment of duty may be brought back to the Unit for the purpose of repair within a period of six months from the date of clearance
Clearance
A clearance can refer to:* in chess, A positional move, where a player moves a piece occupying a certain square away, replacing it with an allied piece that will strengthen the player's position....
.
Temporary Removals to Domestic Tariff Area
The Unit may temporarily remove the following goodsGoods
Goods may refer to;*Good , physical product*Personal property, legal personal chattels...
to a Domestic Tariff Area without payment
Payment
A payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation....
of duty
Duty
Duty is a term that conveys a sense of moral commitment to someone or something. The moral commitment is the sort that results in action and it is not a matter of passive feeling or mere recognition...
:
- Capital goods and parts thereof for repairs and return;
- Goods for displayDisplayDisplay may refer to:* Display , an American thoroughbred racehorse* Display , a form of animal behaviour* Display advertising, type that typically contains text, i.e., copy, logos, images, location maps, etc....
, exportExportThe term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
promotionPromotion (marketing)Promotion is one of the four elements of marketing mix . It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision....
, exhibitionExhibitionAn exhibition, in the most general sense, is an organized presentation and display of a selection of items. In practice, exhibitions usually occur within museums, galleries and exhibition halls, and World's Fairs...
; - Goods for job work, test, repair, refiningRefiningRefining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...
and calibrationCalibrationCalibration is a comparison between measurements – one of known magnitude or correctness made or set with one device and another measurement made in as similar a way as possible with a second device....
; - LaptopLaptopA laptop, also called a notebook, is a personal computer for mobile use. A laptop integrates most of the typical components of a desktop computer, including a display, a keyboard, a pointing device and speakers into a single unit...
or notebook computers or videoVideoVideo is the technology of electronically capturing, recording, processing, storing, transmitting, and reconstructing a sequence of still images representing scenes in motion.- History :...
projection systems for use by authorized employees of a Unit or developer; - Any other goods with the prior approval of the Authorized Officer.