Re-Export to SEZ

[Shekhar Poojary]

Dear All,

Is Drawback under Section 74 will be applicable for supplies of imported goods to SEZ?

AI Summary

Duty Drawback Eligibility Under Section 74 for Goods Supplied to SEZs: Conditions and Rates Explained A discussion on whether duty drawback under Section 74 applies to imported goods supplied to Special Economic Zones (SEZs) generated multiple responses. It was clarified that if a Bill of Export is filed and approved, and payment is received in freely convertible currency, duty drawback can be availed. A disclaimer certificate from the SEZ unit is necessary to ensure no prior claims on the goods. The drawback rates vary: 98% for unused goods and a graded reduction starting at 95% for used goods. Section 74 applies to re-exports, while Section 75 pertains to goods manufactured in India. SEZ is considered outside India for customs purposes.