The Ministry of Commerce and Industry (Department of Commerce) has notified the Special Economic Zones (Fifth Amendment) Rules, 2026, vide Notification No. G.S.R. 962(E), dated October 30, 2026, introducing an important amendment to the Special Economic Zones Rules, 2006. The amendment revises the procedure for claiming duty drawback and similar benefits in respect of transactions involving Special Economic Zone (SEZ) Units, Developers and Domestic Tariff Area (DTA) suppliers.
The Central Government, exercising its powers under Section 55 of the Special Economic Zones Act, 2005, has substituted sub-rule (2) of Rule 24 of the SEZ Rules, 2006. The revised provision specifically addresses cases where a Bill of Export has been filed under a claim of drawback or any other similar scheme laid down under the Customs and Central Excise Duties Drawback Rules, 2017, as amended from time to time.
Under the amended provisions, the SEZ Unit, Developer or Domestic Tariff Area (DTA) supplier shall claim the applicable drawback or similar benefit from the Specified Officer. The amendment expressly identifies these categories of claimants and specifies the authority before whom such benefits are to be claimed.
Significantly, the revised rule also provides for a disclaimer mechanism in favour of DTA suppliers. Where an SEZ Unit or Developer does not intend to claim the drawback or similar benefit, it shall provide a disclaimer to that effect to the DTA supplier, enabling the latter to claim the relevant benefits. This provision establishes an express mechanism for DTA suppliers to pursue eligible claims where the SEZ Unit or Developer does not wish to avail the benefit.
The amendment is particularly relevant for domestic manufacturers, exporters and suppliers making supplies to SEZ Units or Developers, as it clarifies the procedure for claiming eligible drawback and similar benefits. The express disclaimer provision may help reduce uncertainty regarding the claimant and facilitate the processing of such claims, subject to the applicable statutory conditions.
The Special Economic Zones (Fifth Amendment) Rules, 2026 shall come into force on the date of their publication in the Official Gazette. The notification appears in the Gazette of India, Extraordinary, dated October 30, 2026.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/11/Special-Economic-Zones-Fifth-Amendment-Rules-2026.pdf
