Capital goods and spares that have become obsolete/surplus, may be exported, transferred to another Special Economic Zone unit but law does not permit to dispose of in Domestic Tariff Area on payment of applicable duties

The statement, 'capital goods and spares that have become obsolete/surplus, may be exported, transferred to another Special Economic Zone (SEZ) unit but law does not permit to dispose of in Domestic Tariff Area (DTA) on payment of applicable duties' is incorrect . According to Foreign Trade Policy 2015-20, capital goods and spares that have become obsolete/surplus, may either be: Exported, or Transferred to another Export Oriented Unit (EOU)/ Electronic Hardware Technology Park (EHTP)/ Software Technology Park (STP)/ Biotechnology Park (BTP)/ Special Economic Zone (SEZ) unit, or Disposed of in Domestic Tariff Area (DTA) on payment of applicable duties. Benefit of depreciation, as applicable, will be available in case of disposal in Domestic Tariff Area (DTA) only when the unit has achieved positive Net Foreign Exchange Earnings taking into consideration the depreciation allowed. Duty shall not be payable in case capital goods, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap/waste/remnants/ rejects are destroyed within unit after intimation to Customs authorities or destroyed outside unit with permission of Customs authorities.