clarification on duty drawback to SEZ units

[Sujit Pattanaik]

As per the sez rules, a sez unit can go for duty drawback claim for its supplies from DTA suppliers by getting a disclaimer certificate from the suppliers. As per the rule, I think there is a condition where this payment has to be made through its foreign currency account. As these are DTA suppliers, the regular process can be followed is paying them in INR however routing it through foreign currency account through banking challan. Which effectively means, the payment is made out of the earnings in foreign currency.

I am not very sure, whether there is any clarification on this subject from the ministry. I did not see any specific guidelines on this or in any of the BOA meeting minutes posted in the website.

Request you to let me know, whether there is any specific clarification on this subject or what is the normal practice followed across countries in all the SEZs.

I would request for your comments on this.

AI Summary

Clarification Sought on Duty Drawback Claims for SEZ Units: Guidelines Needed for DTA Supplier Transactions in Foreign Currency A query was raised regarding the duty drawback claims for SEZ units receiving supplies from DTA suppliers. The process involves obtaining a disclaimer certificate from suppliers and making payments through a foreign currency account, despite suppliers being paid in INR. The individual seeks clarification on whether there are specific guidelines from the ministry on this process, as they have not found any in official documents or BOA meeting minutes. They request feedback on standard practices followed in SEZs globally.