Eligibility of Drawback u/s 74 of CA

[ASHOK PATRA]

Whether Drawback can ne claimed u/s 74 of Customs Act in case of re-export by DTA unit to SEZ Unit, where DTA Unit has imported goods to be re-exported form outside India,

AI Summary

Drawback under Section 74 not applicable for DTA re-exports to SEZ; valid only for exports outside India. A query was raised regarding the eligibility of claiming a drawback under Section 74 of the Customs Act when a Domestic Tariff Area (DTA) unit re-exports goods to a Special Economic Zone (SEZ) unit, having originally imported the goods from outside India. The response clarified that the drawback is applicable only for exports outside India and not for supplies made to SEZ units.