Refund claim for BCD

[chaganti srinivas]

We have despatched material to SEZ, material required for manufacture this is imported one. Can we claim refund for the BCD portion involved in the exported material IF YES - Please refer circular/notifications. SRINIVAS CHAGANTI

[Rama Krishana]

For the supply of imported goods to SEZ units, refund of BCD would be allowed. You need to visit SEZ rules viz. rule 24, 53 and various other rules. Further, there are various clarification under Foreign Trade Policy.

AI Summary

Refund of basic customs duty allowed on imported goods supplied to SEZ units, subject to SEZ rules and FTP clarifications.
Refund of basic customs duty is available where imported goods are supplied to Special Economic Zone units for use in manufacture; entitlement and recovery are governed by SEZ regulatory rules and clarifications under the Foreign Trade Policy, and require compliance with the prescribed documentation, clearance and refund procedures.