Q. Consider the following:

1. DTA refers to the whole of the country except the SEZs (Special Economic Zones).
2. DTA also includes the continental shelf and the territorial waters.
3. All goods and services supplied to SEZs from DTA are considered as imports.
4. All goods and services supplied to DTA from SEZs are considered as exports.

Which of the above statements is / are correct?
Answer: Only 1 and 2
Notes: A Domestic Tariff Area (DTA) excludes SEZs and encompasses the rest of India, including the continental shelf and territorial waters. Goods/services moved from SEZs to DTA are treated as imports, whereas supplies from DTA to SEZs are treated as exports. Thus, only statements 1 and 2 are correct, while statements 3 and 4 reverse the classification of export/import flows.