Instruction No. 06/2026-Customs, Dated 27-04-2026
The Central Board of Indirect Taxes and Customs (CBIC) has issued an instruction clarifying the eligibility of duty drawback for goods supplied from Special Economic Zones (SEZ) to Domestic Tariff Area (DTA) and subsequently re-exported.
1. Key Clarification
Where goods are:
- Cleared from SEZ to DTA on payment of applicable duties, and
- Re-exported thereafter
Such goods shall be treated as “imported goods” for the purpose of drawback under Section 74 of the Customs Act, 1962.
2. Implication for Drawback Claims
- Duty drawback claims in such cases shall:
-
- Be processed under Section 74
- Treat the SEZ → DTA movement as equivalent to import
3. Rationale Behind the Clarification
The instruction ensures:
- Uniform treatment of goods re-exported after duty payment
- Alignment with the legal framework governing drawback on re-export
- Clarity in handling cases involving SEZ-origin goods
4. Regulatory Impact
- Provides certainty to:
-
- Exporters
- Customs authorities
- Facilitates proper processing of drawback claims
- Avoids disputes on classification and eligibility
5. Conclusion
The clarification streamlines the treatment of SEZ-origin goods re-exported from DTA, ensuring that drawback benefits are granted consistently by recognising such goods as imported goods for Section 74 purposes.
