All supplies to the SEZ are treated as physical export.

Domestic Tariff Area(DTA) suppliers can count on such exports for completion of their export obligations against any License.

Get all benefits of physical exports like advance license, EPCG for export orders.

Instead of going through the deemed exports route, where you pay duties and then claim refund, direct exports can cut down on transaction cost.

Funds will not get blocked on first duty payment and then claims under
deemed exports.

DTA suppliers will be more price competitive while supplying to contractors, operators and foreign vendors in SEZ as they will not be paying any taxes on such supplies being physical exports.

Expand their sales network at lowest cost by selling to vendors in SEZ and
still earn foreign exchange.