Procedure to surrender export incentive

This query is : Resolved

Priya (Querist)
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29 April 2025 We are an exporter of medical products and are eligible for the duty drawback. We exported the product to our customer against an advance payment. Currently, the customer has returned the product as he is unhappy. We have to surrender the duty drawback. Please advise.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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29 April 2025 Rule 18 of the Customs and Central Excise Duties Drawback Rules, 2017, states that if the sale proceeds are not realized, the drawback paid will be recovered by customs authorities.

If the goods are returned and re-imported, you must inform customs and repay the drawback amount. This is because the export benefit was granted on the basis of the export, which is now nullified by the return of goods
Notify your authorized agent/bank and customs authorities about the return and initiate the process to repay the drawback amount.