F.No.S/12-Gen-179/2014-15 AM(X) Date: 21.04.2015


Sub. : Appropriate authority for sanction and disbursement of drawback claims on supplies made by domestic Tariff Area (DTA) units to units located in Special Economic Zone (SEZ) – regarding.

Attention of all Custom House Agents, Importers, Exporters, Shipping Agents, Members of Regional Advisory Committees and Members of the Trade is invited to the above mentioned subject for sanction and disbursement of drawback claims made against supplies made by DTA units to units in SEZ.

2. In this regard, it was clarified vide Board’s Circular No.6/2005-Cus, dated 3.2.2005 that with operationalisation of the provisions of Chapter X-A of the Customs Act, 1962 w.e.f. 11.5.2004, drawback is to be granted for the supplies made from the DTA to the SEZ. The Dy./Asstt. Commissioner of Customs posted on deputation at the SEZ being the Dy./Asstt. Commissioner of Customs at the Customs Station of export shall be the authority for granting these drawback claims.

3. Chapter X A of the Customs Act, 1962 and the SEZ Rules, 2003 and SEZ Regulations 2003 issued thereunder have since been made inoperative and replaced by SEZ Act, 2005 which came into effect on 10.2.2006 and the SEZ Rules, 2006 notified by the Ministry of Commerce and Industry on 10.2.2006. Section 26(d) of the SEZ Act, 2005 provides that every Developer and entrepreneur shall be entitled to drawback on goods brought from the DTA into an SEZ. Rule 24 of the SEZ Rules, 2006 provides that the triplicate copy of the assessed Bill of Export shall be treated as the drawback claim and processed in the Customs section of the Special Economic Zone and the Specified Officer shall be the disbursing authority for the said claims. Further, Rule 30(5) of SEZ Rules, 2006 provides that in case of procurement of goods from DTA where a Bill of Export has been filed under a claim of drawback the Unit or Developer shall claim the same from the Specified Officer and in the case the Unit or Developer does not intend to claim entitlement of drawback, a disclaimer to this effect shall be given to the DTA supplier for claiming such benefit. According to Rule 2(zd) of SEZ Rules, 2006, Specified Officer means Joint Commissioner /Deputy Commissioner /Assistant Commissioner of Customs posted in the SEZ.

4. In view of the above, it is clarified that wherever admissible, drawback claims in respect of supplies made by DTA units to units or Developers in SEZ will not be processed or sanctioned by the Customs formations. The Specified Officer posted in an SEZ is the appropriate authority for granting drawback in respect of goods supplied from DTA units to Developers and units in SEZ except where the unit or Developer issues a disclaimer to the DTA supplier in which case the Commissionerate of Customs having jurisdiction over the DTA unit would sanction the drawback. The jurisdictional Commissioner of Customs in consultation with the Pay & Accounts Officer shall issue the authorization and drawback cheque books as clarified by the Board vide Circular No.6/2005-Cus, dated 3.2.2005.

5. As regards applications for fixation of brand rate of drawback the same may continue to be filed with the Commissioner of Customs having jurisdiction over the manufacturing unit of the manufacturer or the supporting manufacturer, as the case may be. Copies of the brand rate fixation letters may be endorsed to the Development Commissioner and the Specified Officer of the SEZ.

All the Trade Associations/Chamber of Commerce/Members of Regional Advisory Committees and Custom House Agents’ Association are requested to publicize the contents of this Public Notice among their members/constituents

Principal Commissioner of Customs
NS (General), JNCH

1. The Chief Commissioner of Customs, Mumbai Zone II.
2. The Commissioners of Customs, NS I, II, III, IV & V, JNCH
3. The Additional/Joint Commissioners of Customs, JNCH
4. All the Dy. /Assistant Commissioners of Customs, JNCH
5. All the Appraising Officers/Superintendents, JNCH
7. Notice Board / Guard File.

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