Drawback on re export of SEZ supplied goods

The CBIC has clarified that goods supplied from Special Economic Zones (SEZ) to Domestic Tariff Area (DTA), on which applicable duties have been paid, shall be treated as “imported goods” for the purpose of claiming drawback under Section 74 of the Customs Act, 1962 upon re-export.

This instruction resolves divergent field practices and confirms eligibility of drawback in such cases, reinforcing the legal position that SEZ is treated as foreign territory for trade and duty purposes.