Bullish for Exporters: SEZ Goods Eligible for Duty Drawback on

New Delhi has clarified that goods moved from Special Economic Zones (SEZs) to the domestic market, after paying duties, will now be considered imported if subsequently re-exported. This makes them eligible for duty drawback.

This clarification brings much-needed uniformity and reduces ambiguity for businesses operating in SEZs, particularly those involved in re-export. It directly supports exporters' cash flow by allowing them to claim duty drawbacks, thereby enhancing their competitiveness and profitability in international markets.

This news is positive for a wide range of export-oriented companies that operate out of SEZs across various sectors, including IT/ITeS, pharmaceuticals, textiles, and engineering goods. Companies like TCS (TCS), Infosys (INFY), and pharmaceutical exporters could see a marginal benefit from improved cash flow and reduced operational costs related to re-exports.

Traders should monitor the implementation of this clarification and its impact on the financial statements of SEZ-based exporters. Look for any further policy measures aimed at boosting India's export competitiveness. The overall export growth figures will also be a key indicator.

• •Goods moved from SEZ units to domestic market, after paying duties, will be considered imported if re-exported.
• •Duty drawback will be available on such re-exports.
• •This move brings uniformity and reduces confusion for businesses.
• •It supports exporters' cash flow and provides greater certainty.
• •Risk flag: Changes in global trade policies