TaxTMI 
TaxTMI 
Dear All,
Is Drawback under Section 74 will be applicable for supplies of imported goods to SEZ?
Re-Export to SEZ
06 May 2020 
13 Replies 
7345 Views Asked by
Drawback entitlement for re-exported imported goods to SEZ requires re-export compliance and foreign exchange realisation.
Drawback on supplies to SEZ is governed by re-export drawback rules because SEZ is treated as outside India; claimants must file a bill of export or shipping bill under re-export procedures, produce import documents, obtain Development Commissioner approval where applicable, and ensure payment is received in convertible foreign exchange or secure an EDF waiver. Drawback rates for re-exported imported goods follow re-export rules (higher for unused goods within prescribed timeframes; graded reductions for used goods), and IGST credit/payment affects the permissible drawback quantum. Physical verification and documentary matching are mandatory. (AI Summary)
Drawback on supplies to SEZ is governed by re-export drawback rules because SEZ is treated as outside India; claimants must file a bill of export or shipping bill under re-export procedures, produce import documents, obtain Development Commissioner approval where applicable, and ensure payment is received in convertible foreign exchange or secure an EDF waiver. Drawback rates for re-exported imported goods follow re-export rules (higher for unused goods within prescribed timeframes; graded reductions for used goods), and IGST credit/payment affects the permissible drawback quantum. Physical verification and documentary matching are mandatory. (AI Summary)