What is the meaning of DTA in the foreign trade industry?

 

The full form of DTA is Domestic Tariff Area. In short, DTA or Domestic Tariff Area means a dedicated area or space which does not fall under the Customs Department. This term is generally used by goods or services that are exported or sent outside the country and goods or services that are imported from other countries. This term is also widely used where any form of duty or charge is levied on exported or imported goods or services.

DTA or Domestic Tariff Area in the context of foreign trade/international business is when each EOU (Export Oriented Unit) or STP (Software Technology Parks) unit will have a Customs Bonded Warehouse, a space/area that is dedicated and falls under the control of the Customs Department. In case the

exporter or importer wishes to transport the goods or services inside or outside the said warehouse, he/she would require the permission of the Customs/Excise Department. These goods or services then tend to attract duties or special charges. EOU’s or STP’s would have then either procured or gotten the goods or services imported on the basis of certain export obligations in association with the government. In case a unit under EOU or STP fulfilled the above export obligation and achieved a certain value addition, authorities may then grant permission to sell these dutiable goods or services in the local market. Post the completion of any export obligation, EOU or STP units will then be able to sell dutiable goods or services to the DTA or Domestic Tariff Area by carrying the permit from the Customs Department.

Under government schemes if any goods or services are obtained under duty free, they can be sold to the DTA or Domestic Tariff Area after fulfilling export obligations with the government licensing authority or the Customs Department.