The Central Board of Indirect Taxes and Customs (CBIC) on April 27, 2026, notified regarding the Drawback for re-export of duty-paid goods supplied by SEZ to DTA.
The following has been stated:
• It has clarified inconsistencies in processing duty drawback claims under Section 74 of the Customs Act, 1962, particularly for goods cleared from Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA). Addressing audit observations of divergent practices, CBIC explained that under the Special Economic Zones Act, 2005, such clearances attract customs duties and SEZs are treated as foreign territory for trade purposes.
• Therefore, movement of goods from SEZ to DTA qualifies as “import.” Accordingly, where such duty-paid goods are subsequently re-exported and meet identification conditions, they are eligible for duty drawback under Section 74.
• The clarification directs field formations to treat such cases uniformly and allow drawback benefits, removing ambiguity and ensuring consistent application of the law.
[Notification no. - Instruction No. 06/2026-Customs]
