Customs Duty & Drawback Services

Duty drawback is the refund of customs duties and central taxes paid on inputs that go into goods which are then exported. Under Section 75 of the Customs Act 1962, drawback is allowed on the export of goods manufactured from imported inputs where the exporter is not entitled to the input credit of the duties — and Section 74 covers the drawback on re-export of imported goods. The rates are fixed by the Central Government by notification — the All Industry Rate (AIR) drawn from average input-consumption norms, or a brand rate fixed for a specific exporter where the AIR is inadequate.

The drawback is real money sitting in the export. Every exporter whose product carries duty-paid imported inputs has a drawback entitlement, and the claim is made through the shipping bill at export or by a separate claim. For exporters who also claim the Advance Authorisation route or the input tax credit on the same inputs, the claims must be reconciled — the same duty cannot be claimed twice, and the co-relation between the schemes is a classic source of disputes.

Skipping drawback or claiming it wrong has two costs. Not claiming leaves the money with Customs; claiming it wrong — an inflated rate, an ineligible input, a mismatch with the credit claimed elsewhere — invites a demand with interest and penalty under the Customs Act. The AIR is periodically revised, and exporters who do not track the revisions keep using stale rates.

This service is for exporters claiming duty drawback under Sections 74 and 75 of the Customs Act 1962. We compute the claim from the input and export data, decide the AIR vs brand-rate route, reconcile the drawback with Advance Authorisation and input tax credit positions, file the claims, and manage the departmental queries through to the credit in your bank account.