It applied to whole of India
India includes territorial waters of India
It has also been extended to
- N o ti f ie d d e s ign a t e d ar e a s in the Continental Shelf of India (CSI) and Exclusive Economic Zone of India (EEZI)
- Wh o l e o f EE Z I a n d CS I f o r t h e p u r p o s e o f processing for extraction or production of mineral oils and supply of any goods
E xample : The machinery purchased by the oil rigs carrying on operations in the EEZI shall
be considered as imported goods.
What are Indian Territorial Waters?
Indian territorial waters extend upto 12 nautical miles (22 km) into the sea from the appropriate base line.
India includes not only the surface of sea in the territorial waters, but also the air space above and the ground at the bottom of the sea.
Excl u s iv e Ec o nomi c Zon e o f I n dia :
It is an area beyond the Indian territorial waters. The limit of exclusive economic zone is 200 nautical miles from the nearest point of the baseline
C ontinent a l Shel f o f I nd i a :
Continental shelf is the part of the sea floor adjoining a land mass where the depth gradually increases before it plunges into the ocean deeps.
Continental Shelf of India extends beyond the limit of its territorial waters throughout the natural prolongation of its land territory to the outer edge of the continental margin or to a distance of 200 nautical miles from the baseline.
Distinguish between Indian territorial waters and Exclusive Economic Zone of India with regard
to applicability of the Customs Act, 1962.
Indian territorial waters extend upto 12 nautical miles inside the sea from normal base line.
Sovereignty of India extends upto territorial waters. Hence, all provisions of the Customs Act,
1962 are applicable to area covered under territorial waters.
Area beyond 12 nautical miles and upto 200 nautical miles from normal base line is covered
under Exclusive Economic Zone of India. In this area, India has exclusive economic rights.
Hence, provisions of customs law do not apply in this area unless any of such provisions has
been specifically so made applicable.