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 Possible for Basic Customs Duty on Supplies to SEZ Units; Check Rules 24 & 53 for Details. A query was raised about claiming a refund for the Basic Customs Duty (BCD) on imported materials dispatched to a Special Economic Zone (SEZ) for manufacturing purposes. The response indicated that a refund is possible for such supplies to SEZ units. It advised reviewing specific SEZ rules, including rules 24 and 53, as well as relevant clarifications under the Foreign Trade Policy, for detailed guidance on the procedure.