The entire production of EOU/EPZ/EHTP/STP units shall be exported subject to the following:

(a) Unless specifically prohibited in the LOP/LOI, rejects may be sold in the domestic tariff area (DTA), on prior intimation to the customs authority. Such sales shall be counted against DTA sale entitlement under para 9.9(b) of the Policy. Sale of rejects shall be subject to payment of duties as applicable to sale under para 9.9(b).

(b) DTA sale up to 50% of the FOB value of exports may be made subject to payment of applicable duties and fulfillment of minimum NFEP prescribed in Appendix 1 of the Policy. No DTA sale shall be permissible in respect of motor cars, alcoholic liquors and such other items as may be stipulated by Director General of Foreign Trade by a Public Notice issued in this behalf.

(c) Deleted

(d) Deleted

(e) EOU/EPZ/EHTP/STP units may be permitted to sell finished products which are either freely importable under the Policy, or against other import licenses, in the DTA, over and above the levels permissible under sub paragraph (b) above, against payment of full duties, on annual basis, provided they have achieved the stipula ted NFEP and export performance.

(Above sub para (e) has been added vide Ntf. no. 27/98, Dt. 16/9/99) (f) Deleted

(g) For services, including software units, sale in the DTA in any mode, including on-line data communication, shall be permissible up to 50% of FOB value of exports and/or 50% of foreign exchange earned, where payment for such services is received in free foreign exchange.

(h) Items included as by-products in the LOP/LOI may be sold in the DTA on payment of applicable duty.

Note:- In the case of units manufacturing electronics hardware and software, the NFEP and DTA sale entitlement shall be reckoned separately for hardware and software.