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Duty Drawback - Re-Exported Goods

Elements Necessary for Drawback Under Section 74

The elements necessary to claim drawback are:

  1. The goods on which drawback is claimed must have been previously imported;
  2. Import duty must have been paid on these goods when they were imported;
  3. The goods should be entered for export within two years from the date of payment of duty on their importation (whether provisional or final duty). The period can be further extended to three years by the Commissioner of Customs on sufficient cause being shown.
  4. The goods are identified as the goods imported.
  5. The goods must be capable of being identified as imported goods.
  6. The goods must actually be re-exported to any place outside India .
  7. The market price of such goods must not be less than the amount of drawback claimed.
  8. The amount of drawback should not be less than Rs. 50/- as per Section 76-(1) (c) of the Customs Act.

Procedure to Claim Drawback Under Section 74.

Drawback claims under Section 74 of the Customs Act are now being processed manually. To claim drawback under Section 74, the exporter should file the shipping bill under claim for drawback in the prescribed form and after assessment the goods are to be examined by the Customs officers for purposes of physical identification. After shipment, the claim is filed in the department, for sanction of drawback. The pre-receipted drawback payment order has to be forwarded to the drawback department upon which cheque is issued. If the information submitted by the exporter is insufficient to process the claim, a deficiency memo will be issued to the exporter seeking further information or documents to process the claim. On compliance the claims will be processed in the usual manner.

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