On 15 October 2026, India notified the Special Economic Zones (Third Amendment) Rules, 2026. They replace sub-rule (2) of rule 49 of the SEZ Rules, 2006, which covers duty-paid goods that a Unit supplied into the Domestic Tariff Area (DTA) and now wants to bring back. The new text sets four cases, including a 30-day window when the DTA buyer fails to take delivery and a six-month window for repairs.
What does it mean for a unit whose buyer walks away?
Take a Unit in an SEZ, which we will call Zenith Components, that cleared a consignment of goods to a DTA buyer on 1 March and paid duty on them. The name and dates are invented for illustration; the rules involved are real.
On 10 March the buyer tells Zenith it will not take delivery because market conditions have changed. Under the new rule, Zenith must bring the goods back to the Unit within thirty days of the clearance, so by 31 March at the latest. When the goods are back, Zenith has to show the Specified Officer that these are the same goods, give evidence that the buyer has not claimed any benefit on them, including input tax credit, and record them in a separate inventory that can be audited. From there Zenith has two routes: resell the goods unchanged in the DTA, to the same buyer or a new one, paying duty as if it were a fresh DTA sale; or seek a refund of the duty it paid at the original clearance, under rule 47(5) and the Customs Act, 1962, as clause (c) provides.
In rule terms: under new rule 49(2)(a), the Unit must bring the goods back within thirty days of clearance from the SEZ Unit. It must show the Specified Officer the identity of the goods and show that the buyer has taken no benefit, including input tax credit. It must also keep a separate, auditable inventory of the returned goods. Under clause (b), the Unit may then resell the goods in the DTA, to the same or a different buyer, on payment of the applicable duty as if it were a fresh DTA sale.
What are the four cases?
| Clause | Case | Time limit |
|---|---|---|
| (a) | A DTA buyer fails to take delivery because of a change in fashion, change in market conditions, or a default in the sale agreement | Goods brought back within 30 days of clearance from the Unit |
| (b) | Resale of those goods, unaltered, in the DTA to the same or a different buyer | On payment of applicable duty under section 30 of the Act, as a fresh DTA sale |
| (c) | Refund of duty paid at original clearance | Under rule 47(5); refund of duties on goods received back is in terms of the Customs Act, 1962 |
| (d) | Repairs to goods supplied to the DTA on payment of duty | Brought back within six months of clearance, or a period the Specified Officer extends, or the warranty period, whichever is later |
What conditions apply?
- The identity of the goods must be established to the satisfaction of the Specified Officer (clauses (a) and (d)).
- For a buyer that failed to take delivery, the Unit must give evidence that no benefits, including input tax credit, have been availed by that buyer.
- A separate inventory of the returned goods must be kept in an auditable format.
- For repairs, duty is paid on the value of the repairs.
- Resold goods must be in their original condition, without alteration.
Who is affected?
SEZ Units that sell into the DTA
Finance, customs and logistics teams that handle returns and repairs.
DTA buyers
They must not have taken benefits such as input tax credit on goods that come back.
Specified Officers
They assess identity of goods and evidence of no benefit.
When does it apply?
The rules say they come into force on the date of their publication in the Official Gazette. The notification is dated 15 October 2026.
Practical steps, none of them required by the rules: set up a returns register in an auditable format, and check that systems can show the date of clearance so the 30-day and six-month windows can be tracked.
Legal basis
- Power used
- Section 55 of the Special Economic Zones Act, 2005 (28 of 2005)
- Principal rules
- Special Economic Zones Rules, 2006 (G.S.R. 54(E), 10 February 2006), lastly amended by G.S.R. 609(E) of 9 July 2026
- File reference
- F. No. K-43014/11/2024-SEZ, signed by the Joint Secretary, Department of Commerce
- Rule replaced
- Sub-rule (2) of rule 49
Key facts
| Authority | Department of Commerce, Ministry of Commerce and Industry, Government of India |
|---|---|
| Instrument | Special Economic Zones (Third Amendment) Rules, 2026 |
| Issue date | 15 October 2026 |
| Effective date | Date of publication in the Official Gazette |
| Applies to | SEZ Units supplying duty-paid goods into the DTA |
| Status | In force |
| Official source | Gazette of India, Extraordinary, Part II, Section 3(i) |
| Last verified | 21 October 2026, against the Gazette copy in the Neurasix library |
Frequently asked questions
How long does a Unit have to take back goods a buyer refused?
Thirty days from the date of clearance from the SEZ Unit.
Can the Unit resell the returned goods in the DTA?
Yes, without altering them, to the same or a different buyer, on payment of applicable duty under section 30 of the Act as if it were a fresh DTA sale.
How long is the window for repairs?
Six months from clearance, or such period as the Specified Officer extends, or the warranty period, whichever is later. Duty is paid on the value of the repairs.
How is the duty paid at original clearance refunded?
In accordance with sub-rule (5) of rule 47. Refund of duties on goods received back follows the Customs Act, 1962.
Sources (official)
- Special Economic Zones (Third Amendment) Rules, 2026, G.S.R. 893(E), Ministry of Commerce and Industry notification of 15 October 2026, Gazette of India, Extraordinary, Part II, Section 3(i) https://sezindia.gov.in/sites/default/files/sez_rules_amendments/Rule%2049%20dt.%2015th%20October%2C%202026.pdf
- Special Economic Zones Act, 2005 (28 of 2005), sections 30 and 55 https://sezindia.gov.in/sites/default/files/SEZAct2005.pdf
- India
- Special Economic Zones
- Duty-paid goods
- Domestic Tariff Area
- Customs
- Commercial and Industrial Laws
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