CBIC Clarifies Drawback Eligibility on Re-Export of SEZ-Sourced Goods:

CBIC Clarifies Drawback Eligibility on Re-Export of SEZ-Sourced Goods The Central Board of Indirect Taxes and Customs (CBIC), through Instruction No. 06/2026-Customs dated 27 April 2026, addressed inconsistencies noticed by audit authorities regarding grant of duty drawback under Section 74 of the Customs Act, 1962. Audit observations (Audit Report No. 33 of 2025) highlighted that certain field formations were denying drawback claims where goods were first supplied by SEZ units to Domestic Tariff Area (DTA) and subsequently re-exported. The denial was primarily on the ground that such SEZ-to-DTA clearances were not treated as “imports”. CBIC examined the issue in light of Section 30 of the SEZ Act, 2005, which provides that goods cleared from SEZ to DTA attract customs duties, similar to imported goods. It also noted that SEZ is treated as a foreign territory for trade and duty purposes. Decision: The CBIC clarified that: Movement of goods from SEZ to DTA is to be treated as import for duty purposes. Where such goods are cleared on payment of applicable customs duties and later re-exported, they satisfy the conditions of Section 74.Accordingly, duty drawback under Section 74 is admissible, subject to usual conditions like identification of goods. This instruction resolves divergent practices and ensures uniformity across field formations. To Read Full Order, Download PDF Given Below