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Customs duty drawback rules

K Ghosh (Astt Manager (Accounts)) (47 Points)

08 November 2011

Hi anyone, please guide me in matter related below:

We want to purchase material from one supplier in India - then to Export the same.

Now what will be the procedure mainly regarding customs duty drawback claim, is there any information to be noted in our purchase invoice and how and where for drawback claim to be given.

Kindly guide, if possible, from the very first stage, i.e. since purchase.

Regards,

K Ghosh

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3 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 08 November 2011

Provided that where any goods are produced or manufactured from imported materials or excisable materials or by using any taxable services as input services, on some of which only the duty or tax chargeable thereon has been paid and not on the rest, or only a part of the duty or tax chargeable has been paid; or the duty or tax paid has been rebated or refunded in whole or in part or given as credit, under any of the provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, or of the Central Excise Act, 1944 ( 1 of 1944) and the rules made thereunder, or of the Finance Act, 1994 ( 32 of 1994) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty or tax paid or the rebate, refund or credit obtained:

MORE INFOPRMATION :

https://www.cbec.gov.in/customs/cs-act/formatted-htmls/cs-rulee.htm

The term drawback is applied to a certain amount of duties of Customs/central excise, some times the whole, some times only a part remitted or paid by Government on the exportation of the commodities on which they were levied. To entitle goods to drawback, they must be exported to a foreign port, the object of the relief afforded by the Drawback being to enable the goods to be disposed of in the foreign market as if they had never been taxed at all. For Customs purpose drawback means the refund of duty of customs and duty of central Excise that are chargeable on imported and indigenous materials used in the manufacture of Exported goods.

GOODS ELIGIBLE FOR DRAWBACK

This scheme applies to

a. export goods imported into India as such

b. export goods imported into India after having been taken for use

c. export goods manufactured / produced out of imported material

d. export goods manufactured / produced out of indigenous material

e. Export goods manufactured /produced out of imported or and

indigenous materials.

https://customsmangalore.gov.in/duty-draw-back.htm