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Flextronics' Chennai facility in Sriperumbudur was recently granted the Domestic Tariff Area (DTA) status, which will allow the company to ship finished products locally.
By having both DTA and SEZ status, Flextronics will be able to produce and deliver products for both domestic and export markets, with zero customs duty, according to a report by Business Standard. The DTA status provides an added competitive advantage for Flextronics and would allow to service the domestic market and bring to bear its supply chain services to support the burgeoning electronics sector in India.
Flextronics has been operating in Chennai since 2005 at the SIPCOT Special Economic Zone (SEZ). Flextronics Chennai Industrial Park (CIP) provides end-to-end supply chain services that include sub assembly, full-assembly, repair and refurbishment of various products. The company would manufacture energy-related products such as LED lights and electronic ballasts and GPS tracking devices for the domestic market.
Flextronics CIP provides intelligent manufacturing and engineering solutions while its Global Services & Solutions (GSS) facilities in Bangalore, Mumbai and Gurgaon offers after-market services including Temporary Import for Repair (TIFR), Temporary Export for Repair (TEFR), and spare parts logistics. In addition, its Global Business Services (GBS) function in Chennai and Pune also supports Flextronics CIP operations with centralized processing activities such as procurement.
