CBIC Issues Instruction on Duty Drawback for Export of Unlocked Mobile Handsets

Last updated: 21 March 2026

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The Central Board of Indirect Taxes and Customs (CBIC) has released new guidance clarifying duty drawback rules for unlocked mobile handsets exported by merchant exporters. This instruction stems from recent Delhi High Court and Supreme Court decisions that have now been finalised. The CBIC is directing all customs offices nationwide to adhere to these court rulings when processing relevant drawback claims, aiming to streamline export processes and minimise disputes.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 02/2026-Customs clarifying the applicability of duty drawback on the export of unlocked mobile handsets by merchant exporters.

The instruction follows the Delhi High Court's order dated February 13, 2025, which has been upheld by the Supreme Court. The apex court has also dismissed the review petition, thereby confirming the legal position on the matter.

Duty Drawback for Unlocked Mobile Handset Exports Clarified

In light of these developments, CBIC has directed all customs field formations across India to strictly comply with the court rulings while processing duty drawback claims related to such exports.

This move is expected to bring clarity and consistency in handling claims by merchant exporters dealing in unlocked mobile devices, reducing disputes and ensuring smoother export operations.

Official copy of the instruction is as follows

CBIC Issues Instruction on Duty Drawback for Export of Unlocked Mobile Handsets

FAQ :

The instruction clarifies the applicability of duty drawback on the export of unlocked mobile handsets by merchant exporters.

The instruction follows a Delhi High Court order dated February 13, 2025, which was upheld by the Supreme Court, and a dismissed review petition.

The CBIC has directed all customs field formations across India to strictly comply with the court rulings when processing duty drawback claims for these exports.

The move is expected to bring clarity and consistency in handling claims by merchant exporters, reducing disputes and ensuring smoother export operations.

Merchant exporters dealing in unlocked mobile devices are primarily affected by these duty drawback rules.

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