New SEZ Rules Allow Return And Resale Of Undelivered Goods
What Happened
Government has amended the SEZ Rules, 2006, allowing Special Economic Zone units to bring back duty-paid goods when buyers in the Domestic Tariff Area fail to accept delivery because of changes in fashion, market conditions or breach of sale terms. Returned goods must come back within 30 days of clearance. SEZ units must establish their identity, show that the buyer did not claim benefits such as input tax credit, and maintain a separate auditable inventory. The goods can then be resold in their original condition to the same or another domestic buyer. The resale is treated as a fresh domestic sale with applicable duty, while the unit can separately seek a refund of duty paid on the original clearance.
Key Takeaways
The change gives SEZ units a clear route to reclaim and resell rejected goods, but relief is subject to a 30-day return window and strict documentation and duty conditions.