What is duty drawback as per Customs Act?

What is duty drawback as per Customs Act?

Duty Drawback scheme was introduced by the Ministry of Finance as a rebate for duty chargeable on any imported materials or excisable materials used in manufacture or processing of goods, manufactured in India and exported.

What is the duty drawback scheme?

Overview. The Duty Drawback Scheme allows exporters to get a refund on customs duty paid on imported goods, where those goods are: to be treated, processed, or incorporated in other goods for export, or. are exported unused since importation.

What is duty drawback in case of export?

Duty Drawback Scheme aims to provide the refund/ recoupment of custom and excise duties paid on inputs or raw materials and service tax paid on the input services used in the manufacture of export goods.

How many types of duty drawbacks are there?

The Duty Drawback is of two types: (i) All Industry Rate (AIR) and (ii) Brand Rate. The All Industry Rate (AIR) is essentially an average rate based on the average quantity and value of inputs and duties (both Excise & Customs) borne by them and Service Tax suffered by a particular export product.

What are the conditions for Section 74 drawback?

According to section 74 of Customs Act 1962, when duty-paid imported goods are re-exported in used or unused condition within two years, the importer may claim refund of import duty up to maximum 98 % of the Customs duties paid at the time of importation as duty drawback.

What is the time limit for re exportation of goods as such US 74?

within two years
TIME – LIMIT UNDER SECTION 74 In order to claim drawback under Section 74 the goods should be entered for export within two years from the date of payment of duty on the importation thereof.

What is the time limit for re exportation of goods as such U S 74?

What is a customs drawback?

Drawback is the refund of certain duties, internal revenue taxes and certain fees collected upon the importation of goods. Such refunds are only allowed upon the exportation or destruction of goods under U.S. Customs and Border Protection supervision.

What is the time limit for re exportation of goods as such under section 74?

According to section 74 of Customs Act 1962, when duty-paid imported goods are re-exported in used or unused condition within two years, the importer may claim refund of import duty up to maximum 98 % of the Customs duties paid at the time of importation as duty drawback.

How do I claim duty drawback in GST?

To claim higher rate of Duty Drawback, the Assessee/exporter is also required to submit a self declaration and a certificate from the jurisdictional GST to the effect that no input tax credit of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.

Is duty drawback allowed on re export of wearing apparel without use?

(iii) Yes, duty drawback is allowed when wearing apparels are re-exported without being used. However, if wearing apparels have been used after their importation into India, drawback of import duly paid thereon shall not be allowed when they are exported out of India.

What is duty drawback under Section 74 of the Customs Act?

The Central Government is empowered to grant Duty Drawback under section 74 and 75 of the Customs Act, 1962. Under section 74 of the Customs Act, 1962 duty drawback to the extent of 98 percent of the duty paid on imported goods can be claimed for re-export, provided the goods are re-exported within two years of payment of import duty.

When drawback not allowed under Section 74?

Drawback not to be allowed in certain cases: It will be noticed that in the case of drawback under section 74 the amount of drawback was related to the actual duty paid on the goods. It did not have any correlation to valuation or rate of duty at the time of export.

What is duty drawback on re-export of imported goods?

Under section 74 of the Customs Act, 1962 duty drawback to the extent of 98 percent of the duty paid on imported goods can be claimed for re-export, provided the goods are re-exported within two years of payment of import duty. Section 75 of the Act, empowers duty drawback on export of manufactured articles.

What is Section 16 of the Customs Act 1962?

The provisions of section 16, or sub-section (2) of section 83, of the Customs Act, 1962 shall determine the amount or rate of drawback applicable to any goods exported under these rules. [19]

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