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Regarding Admissibility of Duty Drawback to the Supplies Effected by DTA
Units to Special Economic Zones
Customs
Circular No. 24 dated 1st April 2003
Customs
Act, 1962 was amended last years and Chapter XA has been added detailing special
provisions relating to Special Economic Zones. Section 76-I of the Customs act
has provided that any goods admitted to a Special Economic Zone (SEZ) from the
Domestic Tariff Area (DTA) shall be eligible for drawback under section 75 as if
such goods are export goods for the purposes of that section.
2.
Accordingly, rule 2 (c) of the Customs and Central Excise Duties Drawback
rules, 1995, has been amended. The supplies made to the SEZ by the DTA units
thus shall be treated as physical exports and these shall be eligible for both -
All Industry Rates of Duty Drawback notified under rules 3 and 4 of the said
rules Brand Rate of Duty Drawback fixed rule 6 or 7, as the case may be, of
these rules.
3.
Since SEZs are special areas designated by the Government, the procedural
requirements of the same need to be spelt out clearly to obviate any confusion
at the field level and to dispel doubts in the minds of trade. The issue has
been examined.
4.
it has been decided that the area of the Special Economic Zones shall be
a Customs station and all the functions relations to the enforcement of the
Customs Act shall be controlled by the Commissioner of Customs with the
assistance of proper officers of Customs. The goods entered into the SEZ from
the DTA shall be under the cover of a Bill of Export. This Bill shall be
registered in the SEZ Customs formation and assigned a running serial number.
Thereafter, the goods shall be examined by the Customs Officers posted in the
SEZ like a normal export consignment. These goods shall be eligible for drawback
at the All Industry rates or Brand Rates, as the case may be. Drawback shall be
disbursed to the SEZ Unit receiving supplies from DTA Unit on the basis of a
disclaimer certificate given by the DTA Unit in favour of SEZ Unit. The drawback
amount so calculated shall be disbursed either by cheque or by directly
crediting into the account of SEZ Unit maintained by designated branch operating
at the SEZ Complex.
5.
Suitable public notices for information of the Trade and standing orders
for guidance of the staff may kindly be issued accordingly.
6.
The receipt of this Circular may kindly be acknowledged.
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