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.

Exam Questions

Question 1
Distinguish between Indian territorial waters and Exclusive Economic Zone of India with regard
to applicability of the Customs Act, 1962.

View Answer
  1. Indirect Tax
  2. Customs

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.