Duty Drawback on export from EOU and SEZ

[Ashok Chopra]

Dear Forum,

I am E.O.U.  and also having one unit in SEZ.  i do not want to avail benefit all type of direct and indirect taxes like income tax, Import Duty, Service Tax, CENVAT on input and input services etc.

Can i avail the benefit of Duty Drawback on export made from my above units?

If yes or no , please provide me copy of notification/circular etc. to satisfy my management.

With regards

[Ketan bhinde]

Dear Sir,

As  you are already an EOU and also having a unit in SEZ  how can you avail the benefit of Duty Drawback  since  you are already availing the benefit of all types of direct and indirect taxes.

Regards

Arti Sehgal ( Advocate)

[RadheyShyam Mangal]

The exports from EOU/SEZ are ineligible for the benefits of Duty Draw Back as there is prohibition of such claim in the relevant Notification of duty draw back. Your Unit can claim the benefit of Chapter 3 i.e. Focus Product or Focus market Scheme etc if otherwise eligible.

The fact that you donot intend to take benefit all type of direct and indirect taxes like income tax, Import Duty, Service Tax, CENVAT on input and input services etc., does not alter the above position.

Current relevant Notification is Notification No. 98/2013 - CUSTOMS (N.T.) 14^th September, 2013

(8)   The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is -

(a)   manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962);

(b)   manufactured or exported in discharge of export obligation against an Advance Licence or Advance Authorisation or Duty Free Import Authorisation issued under the Duty Exemption Scheme of the relevant Export and Import Policy or the Foreign Trade Policy:

Provided that where exports are made against Advance Licences issued on or after the 1st April, 1997, in discharge of export obligations in terms of notification No. 31/97 - Customs, dated the 1st April, 1997, or against Duty Free Replenishment Certificate Licence issued in terms of notification No. 48/2000-Customs, dated the 25th April, 2000, or against Duty Free   Replenishment Certificate Licence   issued in terms of notification No. 46/2002-Customs, dated the 22nd April, 2002, or against Duty Free   Replenishment Certificate Licence   issued in terms of notification No. 90/2004-Customs, dated the 10th September, 2004, drawback at the rate equivalent to Central Excise allocation of rate of drawback specified in the said Schedule shall be admissible subject to the conditions specified therein;

(c)   manufactured or exported by a unit licensed as hundred per cent. Export Oriented Unit in terms of the provisions of the relevant Export and Import Policy and the Foreign Trade Policy;

(d)   manufactured or exported by any of the units situated in free trade zones or export processing zones or special economic zones;

(e)   manufactured or exported availing the benefit of the notification No. 32/1997–Customs, dated 01st April, 1997. Regards

AI Summary

Duty Drawback Ineligibility for exports from EOU and SEZ; alternative export incentives available under focus schemes. Exports manufactured or exported by units licensed as Export Oriented Units or by units situated in Special Economic Zones are not eligible for duty drawback under the relevant customs notification; exports against Advance Licences are also excluded, and a unit's choice to decline other tax or duty benefits does not change this ineligibility. Alternative incentives such as Focus Product or Focus Market schemes may be pursued where applicable.