DUTY DRAWBACK

SCHEME


The Duty Drawback scheme provides
exporters a refund of customs duty paid on
unused imported goods, processed or
incorporated into other goods for export.
The eligibility is you must be the legal owner
of the goods when goods are exported.
ALL INDUSTRY RATE (AIR) OF
DUTY DRAWBACK:

 The AIR of Duty Drawback are large number of
export products every year by the Government.
 The AIR are fixed after extensive discussions with all
stake holders viz.
 The AIR of Duty Drawback is generally fixed as a
percentage of FOB price of export product.
 EDI system facilitates credit\disbursal of Drawbacks
directly to exporter’s bank account .
 BRAND RATE OF DUTY
DRAWBACK:

 The export has not been notified in AIR of duty
drawback or where the exporter considers the
insufficient to fully neutralize the duties suffered .
 Exporter has to make an application to the
commissioner.
 In terms of rule 6 the Drawback rules ,1995 receipt of
brand rate application has to verify the details
furnished by the exporter.
 SECTION 74 DRAWBACKS:

 In case of goods which are earlier imported on
payment of duty can be claimed as duty drawback.
 Act, 1962 read with re-export of imported goods.
 The goods are not put into use after import, 98% of
duty drawbacks under section 74.
 No duty drawbacks is available if the goods are
exported 18 month after import.
SUPPLEMENTARY CLAIMS OF
DUTY DRAWBACKS

 Where the rate of duty drawback is determined or
revised under rules 3 or 4 of the drawback rules,1995
from the date of such rate in the official Gazette.
 Where the rate of duty drawbacks is determined or
revised upward under rules 6 or 7 of the drawback
rules 1995, from the date of communicating the said
rate to the person concerned.
 In all other cases, from the date of payment or
settlement of the original duty drawbacks claim by
the proper officer.
 PROCEDURE FOR CLAIMING
DUTY DRAWBACKS

The Duty Drawback on export goods AIR Brand Rate
is to be claimed at the time export and prescribed
format of shipping bill\bill of export under drawback.
Shipping bill itself is treated as the claim for drawback.
If the document are not furnished or there is any
deficiency the maybe returned.
The export shipment , however , will not be stopped for
this reasons.
 LIMITATION ON
ADMISSIBLITY OF DUTY
DRAWBACK

 The customs Act, 1962 lays down certain limitations
and conditions
 The Duty Drawback amount is less than Rs.50/-.
 The Duty Drawback amount exceeds one third of the
market price of the export product.
 The Duty Drawback amount is less than 1% of FOB
value per shipment exceeds Rs.500/-.
 In case of export smuggled back the government can
take under section 76 .