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?

[YAGAY andSUN]

Your understanding in this matter is absolutely correct. Further, exporter at DTA would also in need to furnish Bill of Export and get it approved from Development Commissioner of SEZ before exporting the goods from DTA to SEZ.

AI Summary

Duty drawback on DTA to SEZ supplies: limited to domestically manufactured goods and requires payment from SEZ foreign currency account. Duty drawback under the SEZ Rules applies to supplies from DTA to SEZ only for goods manufactured in India; imported goods supplied as such are excluded. Claims must follow the procedure in Rule 24, payment to vendors should be made from the SEZ unit's foreign currency account, and the DTA exporter must furnish and obtain approval of the Bill of Export from the Development Commissioner before export to the SEZ.