Duty Drawback
 
Rebate of duty chargeable on any imported material or excisable material used in the manufacture of goods.

To entitle goods to drawback, they must be exported to a foreign port.
 

Drawback under Sections 75

Under these rules of Duty Drawback there are three types of Duty Drawback rates :

1. All Industry Rates (AIR)

The rates of drawback are announced by the Government  of India.

Applicable to

  • Manufacturer Exporters
  • Merchant Exporters
Rates are fixed on wide range basis after obtaining data from the leading manufacturers, Customs and Central excise commissioners.
Revised every year immediately after the year's budget.  Also reviewed in between the year also wherever warranted.
From time to time new products are also added to the list of goods having All Industry Rates.
 

2. Duty drawback brand rate fixation where no
All Industry Rate exists.

Rates are fixed on the basis of the duties incurred by a particular manufacturer in the export of goods

Applications are filed with the Commissioner of Central Excise or the Commissioner of Customs and Central Excise as the case may be, under Rule 6 of the rules

3. Special Brand Rates

Applicable if the Exporter / Manufacturer feels that the All industry drawback rate allowed is inadequate and is in fact less than 4/5 of the amount of Duty drawback calculated by the Exporter / Manufacturer on the basis of incidences suffered on the duty paid components / raw materials whether imported or indigenous used by them in the manufacture of the export product.
Rates are fixed by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise as the case may be, under Rule 7.
 
Drawback under Sections 74

In this category, two types of cases are covered

1.

Imported goods exported as such i.e. without putting into use -98% of duty is refunded and
2.
Imported goods exported after use - the percentage of duty is refunded according to the period between the date of clearance for home consumption and the date when the goods are placed under Customs control for exports. The percentage of duty drawback is notified under Notification No. 19 Custom, dated 6th Feb., 1965, as amended from time to time.

 
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