Customs Duty Drawback — Sections 74 & 75 Claims

Section 74 of the Customs Act, 1962: drawback on re-export of imported goods — 98% of duty paid if exported within 2 years of import; percentage varies based on usage period (Section 74(1) and Drawback Rules 2017). Section 75 of the Customs Act, 1962: drawback on goods manufactured in India and exported — computed at All Industry Rate (AIR) notified annually by CBIC, or brand/specific rate applied for by manufacturer under Rule 7 of Customs and Central Excise Duties Drawback Rules 2017. Customs and Central Excise Duties Drawback Rules 2017 (effective 01.10.2017) — Rule 3 (AIR drawback as percentage of FOB export value), Rule 6 (brand rate application within 1 year of export), Rule 7 (special brand rate where AIR is less than 80% of actual duties suffered), Rule 11 (IGST refund on export of goods under shipping bill — Section 16 IGST Act). Section 16 of the IGST Act, 2017: zero-rating of exports; IGST refund on goods exported under shipping bill (auto-processed via ICEGATE-GST integration). Customs Act 1962 Section 17: verification of export documents. CBIC Circular on drawback schedule (updated annually — July notification).

Customs Duty Drawback is a mechanism under Sections 74 and 75 of the Customs Act, 1962, that allows exporters to claim a refund of duties paid on inputs used in the manufacture of exported goods. Our advisory and claim filing service ensures that businesses maximize their drawback benefits, whether under the All Industry Rate (AIR) or through brand/specific rate applications under the manufacturer.

Under Section 74, drawback is available on re-export of imported goods within two years of import, typically at 98% of the duty paid, subject to usage adjustments as per the Drawback Rules 2017. For goods manufactured in India and exported, Section 75 provides drawback computed at AIR notified annually by CBIC, or at brand rates applied for by manufacturers under Rule 7 of the Customs and Central Excise Duties Drawback Rules 2017.

Our team handles the entire process, from document preparation and application filing to follow-up with Customs authorities. We assist in claiming not only basic customs duty but also CVD and IGST refunds under Section 16 of the IGST Act, 2017. With expertise in CBIC circulars and the latest drawback schedules, we ensure compliance and timely recovery of your funds.