Duty Drawback - Re-Exported Goods

Elements Necessary For Drawback Under Section 74

The elements necessary to claim drawback are:

1. The goods on which drawback is claimed must have been previously imported;
2. Import duty must have been paid on these goods when they were imported;
3. The goods should be entered for export within two years from the date of payment of duty on their importation (whether provisional or final duty). The period can be further extended to three years by the Commissioner of Customs on sufficient cause being shown.
4. The goods are identified as the goods imported.
5. The goods must be capable of being identified as imported goods.
6. The goods must actually be re-exported to any place outside India.
7. The market price of such goods must not be less than the amount of drawback claimed.
8. The amount of drawback should not be less than Rs. 50/- as per Section 76-(1) (c) of the Customs Act.

Procedure To Claim Drawback Under Section 74.

Drawback claims under Section 74 of the Customs Act are now being processed manually. To claim drawback under Section 74, the exporter should file the shipping bill under claim for drawback in the prescribed form and after assessment the goods are to be examined by the Customs officers for purposes of physical identification. After shipment, the claim is filed in the department, for sanction of drawback. The pre-receipted drawback payment order has to be forwarded to the drawback department upon which cheque is issued. If the information submitted by the exporter is insufficient to process the claim, a deficiency memo will be issued to the exporter seeking further information or documents to process the claim. On compliance the claims will be processed in the usual manner.

Supporting Documents Required For Processing Drawback Claim Under Section 74

1. Triplicate copy of the Shipping Bill bearing examination report recorded by the proper officer of the customs at the time of export.
2. Copy of the Bill of entry or any other prescribed documents against which goods were cleared for importation.
3. Import invoice.
4. Evidence of payment of duty paid at the time of importation of goods.
5. Permission from the Reserve Bank of India for re-exports of goods, wherever necessary.
6. Export invoice and packing list.
7. Copy of the Bill of Lading or Airway bill.
8. Any other documents as may be specified in the deficiency Memo.

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. Provided that in any particular case the period of two years may on sufficient cause shown be extended by the by the Central Board of Customs and Central Excise by such period as it may deem fit.

The time limit have to be computed from the date of payment of duty up to the date of entry of goods for export under Sec 50 of the Customs Act for export by air or sea, under Section 77 for baggage items and Under Section 83 of the Customs Act for export by post

The claims should be filed in the manner prescribed under Rule 5 of Re-export of Imported Goods(Drawback of Customs Duties) Rules,1995, read with Public Notices issued by the Custom Houses. The time limit for filing the claim is three months from the date of let export order. If the exporter was prevented by sufficient cause from filing the claims within three months, the Asst. Commissioner of Customs can relax the time limit by three months.