CUSTOMS DUTY DRAWBACK

Meaning of Drawback:
(a) Rebate of duty chargeable: The rebate only chargeable on any imported material or
excisable used in the manufacture of such goods in India.
(b) Rebate of duty of excise: The rebate of duty of excise chargeable under the Central
excise Act on the goods specified.
(c) Drew back is equal to: Drew back implies duty relief or repayment of duty paid in
respect of any goods when they are exported out of India or used in the manufacture of
goods that are exported out of India. Drawback is equal to-
 Customs duty paid on imported inputs and;
 Excise duty paid on indigenous inputs.
Goods on which drawback is permitted: Draw back is allowed on all the items that are
exported. However, drawback is not permitted in respect of coffee, tea and agricultural produce,
as their inputs are not subject to customs duty and excise duty.
Provisions relating to drew back:
1. Drawback allowable on reexport of duty-paid goods (Section 74)
2. Draw back on imported material used in the manufacture goods which are exported.
(Section 76)