03 September 2014
Our company is Importing material from Sweden (our parent company) . After having assembly with some locally purchased material. we export some finished goods to Sweden our parent company.
We are taking cenvat of CVD & Add. CVD of import duty.
Whether our company is eligible for duty drawback?? & if yes what is the procedure for the same??
21 July 2024
Yes, your company may be eligible for duty drawback under the Duty Drawback Scheme in India, given that you are importing materials, using them in assembly with locally purchased materials, and then exporting finished goods to Sweden (your parent company).
### Eligibility Criteria for Duty Drawback:
To qualify for duty drawback, the following conditions generally need to be met:
1. **Exported Goods**: The goods must be exported out of India. 2. **Duties Paid**: Import duties (such as Basic Customs Duty, Additional Duty of Customs, etc.) should have been paid on the imported materials used in manufacturing or processing the exported goods. 3. **Claimable Amount**: The amount of duty drawback that can be claimed depends on the duties paid on the imported materials that are incorporated or used in the exported goods.
### Procedure to Apply for Duty Drawback:
Here's a step-by-step outline of the procedure to apply for duty drawback:
1. **Identification of Eligibility**: Determine which imported materials (for which duties were paid) are used in the manufacturing or processing of the goods that are exported.
2. **Documentation**: Prepare supporting documents such as: - Export invoices. - Bill of Entry showing payment of import duties. - Shipping bills or other documents evidencing export. - Any other relevant documents related to the import and export transactions.
3. **Application Form**: Fill out the Duty Drawback application form. This form is typically available on the website of the Directorate of Drawback or the Customs department.
4. **Submission**: Submit the completed application form along with supporting documents to the concerned Customs department or the designated agency handling duty drawback claims.
5. **Verification and Processing**: The Customs department will verify the documents and details provided in the application. If everything is in order and meets the eligibility criteria, the duty drawback amount will be determined.
6. **Payment**: Upon verification and approval, the duty drawback amount will be credited to the exporter's bank account or issued through a cheque as per the chosen mode of payment.
### Additional Considerations:
- **Time Limit**: Duty drawback claims must typically be filed within a specified time frame from the date of export. - **Consultation**: If unsure about the specifics or eligibility criteria, it's advisable to consult with a customs consultant or expert who can guide you through the process.
By following these steps and ensuring compliance with the requirements, your company can apply for duty drawback effectively. Always refer to the latest regulations and guidelines issued by the Indian Customs department or Directorate of Drawback for accurate information.
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