ARTICLE

B COM. LL.B. (HONS.) TAXATION LAW

VII SEMESTER

TOPIC- DUTY DRAWBACK

Submitted by:
SHAHIL KASHYAP
R129207078
500060429

Submitted to:
Ms. Preetika Sharma
Assistant Professor

School of Law
University of Petroleum and Energy Studies
Dehradun
 Abstract
 This article provides a legal assessment of drawback schemes as permitted and prohibited within preferential trade areas. 
Duty drawback enables exporting companies to obtain a refund of custom duty paid on imported goods
This duty drawback scheme is helpful to maintain and accelerate the GDP growth. The duty drawback scheme has been advised for an
enormous number of export products by the Government after an appraisal of the normal incidence of Customs, Excise duties,Service Tax and
Transaction Cost endured by the fare products.Duty Drawback Scheme plans aims to provide the refund of custom and excise duties paid on
inputs or raw materials and service tax paid on the input services used In this article, we look at the procedure for claiming Duty Drawback of
export in India

Keywords: Import, Export, Duty Drawback

1. Introduction
With the introduction of Duty drawback is defined as the import of such goods
refund of duty on that part of the imported raw material used
in the production of the goods are exported
Duty drawback can be used to specify a flexible linearization
path and speed up the opening of protected economics
Duty drawback provision given under sec 74 and 75 of the
customs act 1962 sec 74 allows duty drawback on re-export of
duty paid goods ,
Where as sec 75 allows drawback on imported goods used in
the manufacture of export goods. In order to faciliate the
drawback procedures the central govt. is empowered to make
rules.
is cross verified with the particulars furnished at the time of
Goods eligible for drawback
 To export goods imported into India
 To export goods manufactured out of imported or
indigenous materials
 To export goods manufactured out of imported
Materials
 To export good imported into India and after having
been taken for uses

Concept of duty drawback Discusion

There are some loopholes in the scheme also somrtimes the

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.
The scheme promotes exports and to ensure that exported
products are Revenue Neutral
exporter show the fraudlent vague Invoice or shipment details
to earn profit by using this scheme by showing the transaction
value more than original many times exporters succeeded to
defraud the custom officers or presiding officer. Then more
issues or challenges in the tribunal and the court by the
authority

Duty drawback is the refund of duty on the part of imported

raw material used in the production of the goods and the
manufactured goods are exported the drawback refers to the
rebate of duty chargeable or any imported or excitable DUTY DRAWBACKS RATES
material used in the manufacture of goods exported from
India in order to Encourage the export of the country The
government provides the duty drawback to exporter to make
their products competitive overseas. In a case of goods which
were earlier imported on payment of duty and let us out to be
exported within a specified period
The central government is empowered to grant duty
drawback under section 74 and 75 of the customs act 1962.
Under section 74 the custom act duty drawback to the extent
of 98% 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 the export of manufactured
articles. The principal method of increasing the export of
goods has been drawback of the custom any Central excise
duties on goods manufacturer out of custom duty and or
Central excise duty paid on inputs on raw materials Search
duty drawback is granted in terms of section 74 of the
customs act read with Central excise duties and services tax
drawback rules for this purpose the identity of export goods
Categories of duty drawback
Drawback allowable on the export of duty paid goods-
Section 74 of customs act allows drawback on the export of
duty paid on imported goods where any goods have been
imported into India and those same goods in trade free export
or to be exported as a baggage or entered for export by Post
and section 82 the 98% of such duty shall be re-paid as a
drawback
Drawback on imported material used in the producing of
goods which are exported-
Section 75 of this act allows drawback on physical exports of
Physical products where in the duty has been paid, hey
drawbacks should be allowed on any imported materials of a
class or description used in the manufacturing of such goods
on which any operation has been carried out in India which
have been going for exports and in the specter of which an
order permitting the clearance and loading their thereof for
exportation has been made
Prhibition of duty drawback in some cases
As notified in section 76 there is no drawbacks Allowed and
respect of any goods the market price Of the goods is less
than the amount of drawback, or where are the drawback due
in this fact of any good is less than Rs.50
In case of Commissioner of Central excise and custom
Andhra Pradesh versus Suresh jhunjhunwala and others court
held that exporters we are obliged to declare the value of
goods during this judgment “not solely took into
the thought the availability  of thecustom
act however additionally section fifteen ofthe interchange reg
ulation act {and the|and therefore the|and additionally the}
rules there under as also the notification issued by the central
government from time to time the court has a opinion that for
determining the export value of the goods it is necessary to
refer to the meaning of the word value as defined in section
2(41)Of the act and the same must be determined in
accordance with the provision of subsection one of section 14
Section 14 specifically provides that in case of assessing the
value for the purpose of export value is said to determine at
the price which such or like goods are ordinarily sold or
offered for sale at the place of Exportation in the course of
international trade, where the seller and buyer have no interest
in the business of each another and the price is sole
consideration for sale and no drawback is allowed
Documents Required
The below following area unit the
documents needed for process  claim.
• Triplicate copy of the Shipping Bill
• Copy of the Bill of entry
• Import Invoice
• Proof of payment of duty paid on the importation of products.
• Approval from the banking concern of Asian country for re-
exports of products
• Copy of the Bill of consignment or Airway bill.
• Copy of the Bank Certified Invoices.
• Sixtuplicate Copy of AR-4
• Export invoice and packing list.
• Freight and Insurance certificate
• Copy of the take a look at report of products
• Modvat Declaration
• A worksheet showing the downside quantity claimed
• DEEC Book and licence copy wherever applicable.
• Transhipment certificate wherever applicable
• Blank acknowledgement card in duplicate
• Pre-receipt for disadvantage quantity on the reverse of
Shipping Bill punctually signed on the Rs1/- stamp
Conclusion
Duty drawback empowers sending out organizations to get a
discount of custom obligation paid on imported goods Where
are those products will be dealt with processed or incorporated
into different goods for exports. The duty drawback scheme is
made because there is no need to levy custom duty on imports
if the goods are imported for re-export or exported materials are
used in the manufacture of goods which are then exported.
Neutralizing tax element in the exports product is an
international accepted methodology to encourage exports.
However there are multiple schemes apart from drawback.
Duty drawback can only be claimed by the exporter of any
product when he had already been paid the duty on imported
goods and such goods at the exported to any other country as
the identified well goods are any final product is exported.
Duty drawback is beneficial provision given under customs act
1962 and the drawback rules 1995 this financial benefit is in
addition to other benefits given under Foreign trade policy act
However, drawback isn't permitted when the assessee picks
advance approval scheme subsequently, it is to investigate all
the gainful alternative prior to picking a specific choice,
This duty drawback scheme is helpful to maintain and
accelerate the GDP growth it helps us to increase the export
and make the foreign exchange through exports

References
1. https://www.caclubindia.com/articles/concept-of-duty-
drawback-22000.asp.
2. https://charterbrokerage.net/what-is-duty-drawback/
3. https://www.amaindia.org/ama-events-programmes/duty-
drawback-scheme-and-exporters-w-r-t-amendments-of-
4th-feb2020-to-the-scheme-apr-2020/.
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