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.
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
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