Refund of 4% Additional Duty of Customs (For Trading )



The scheme of refund of 4% Additional Duty of Customs has been notified through an exemption notification.


The Central Government has exempted goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for subsequent sale, from the whole of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Customs Tariff Act (hereinafter referred to as the said additional duty) vide D.O.R notification no.: 102/2007 dated 14.09.2007


The exemption contained in this notification shall be given effect if the following conditions are fulfilled:


(a) The importer of the said goods shall pay all duties, including the said additional duty of customs leviable thereon, as applicable, at the time of importation of the goods;

(b) The importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible.

(c) The importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer.

(d) The importer shall pay on sale of the said goods, appropriate sales tax or value added tax, as the case may be;

(e) The importer shall, inter alia, provide copies of the following documents along with the refund claim:


  • Documents evidencing payment of the said additional duty;
  • Invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed;
  • Documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.


Time Limit: The Importers can File claims under the above exemption up to a period of one year from the date of payment of duty.


Eligibility: The importers would be entitled to Refund of duties only in respect of quantities for which the prescribed documents are made available and the claims submitted within the maximum prescribed time of one year. Unsold stocks would not be eligible for refunds.


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