Supply from DTA to SEZ and Duty Drawback thereon

[Kaustubh Karandikar]

Rule 24 of SEZ Rules provides for claiming duty drawback on supply of goods from DTA to SEZ. To my knowledge, AIR drawback on export of goods manufactured in India is applicable on supply of goods to SEZ by DTA including inter-unit supplies subject to procedure specified in Rule 24. However, as understood, payment to vendor including sister unit or DTA branch has to be made from FC account of SEZ for claiming the said duty drawback. As further understood, the said drawback is only applicable on goods manufactured in India and not on imported goods supplied as such to SEZ unit by importer dealers in India. Is my understanding correct?

AI Summary

SEZ Rule 24: Duty Drawback on DTA to SEZ Supplies; FC Payment Required; Excludes Imported Goods by Importer Dealers. Rule 24 of SEZ Rules allows for claiming duty drawback on goods supplied from Domestic Tariff Area (DTA) to Special Economic Zones (SEZ), applicable to goods manufactured in India. Payment to the vendor, including sister units or DTA branches, must be made from the SEZ's Foreign Currency (FC) account. The duty drawback does not apply to imported goods supplied to SEZ units by importer dealers in India. Additionally, exporters from DTA must furnish a Bill of Export and obtain approval from the SEZ Development Commissioner before exporting goods to SEZ.