Mobile Phone Exporters Win: SIM Activation for Export Markets Not "Use" Under Duty Drawback Rule 3

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....HC ruled in favor of mobile phone exporters, holding that unlocking/activation of phones for overseas markets does not constitute "taken into use" under Rule 3 of Duty Drawback Rules. The court determined that configuration processes - whether through SIM insertion or air-activation - merely enable geographical functionality without engaging the device's multifarious capabilities. This interpretation preserves exporters' rights to duty drawbacks under Section 75 of Customs Act, supporting export competitiveness. The court quashed CBIC's contrary clarifications, emphasizing that export benefits should be construed favorably for exporters when ambiguous. This ruling particularly benefits India's growing mobile manufacturing sector by maintaining drawback eligibility despite pre-export configuration requirements.....