Duty Drawback Scheme

Complete Guide for Exporters in India

Introduction to Duty Drawback Scheme : The Duty Drawback Scheme is one of India’s tried and tested export incentive programs, enabling exporters to claim a refund of customs duties and excise duties paid on imported raw materials, components, and packing materials used in the production of export goods. Notified under Section 75 of the Customs Act, 1962 and governed by the Customs & Central Excise Duties Drawback Rules, 2017, the scheme lowers the cost of exports, improves liquidity, and makes Indian products more competitive in international markets, supporting the vision of “Make in India” exports.

FAQs on Duty Drawback Scheme

1. Who is eligible to claim Duty Drawback?

Exporters who have paid customs/excise duty on inputs, exported products covered under the All Industry Rate (AIR) schedule, and filed Drawback Shipping Bills with complete documentation are eligible.

2. What exports are not eligible for Duty Drawback?

Exports under Advance Authorisation, DFIA, Free Shipping Bills, SEZ/EOU units, or goods manufactured in bonded warehouses under Section 65 of the Customs Act are not eligible.

3. What is the difference between Duty Drawback and RoDTEP?

• Duty Drawback refunds customs and excise duty on imported inputs.
• RoDTEP Scheme refunds embedded, non-creditable domestic levies and taxes.
  Both can be claimed together, subject to DGFT rules.

Common Challenges Exporters Face in Duty Drawback Scheme

• ❌ Confusion between All Industry Rate (AIR) vs Brand Rate applicability.
• ❌ Delays in Customs credit/refund due to incomplete documents or EGM issues.
• ❌ Disallowance of claims when exports are under AA, DFIA, or SEZ/EOU.
• ❌ Incorrect HS code classification leading to lower or nil drawback rates.
• ❌ Lack of clarity on drawback claim timelines and procedural compliance.
• ❌ Handling audit queries or Customs notices related to drawback claims.

👉 These challenges often lead to delayed refunds or financial losses, making expert advisory crucial.

Why Choose Sohamma for Duty Drawback Advisory?

• ✅ Advisory on eligibility & classification under Drawback Schedule.
• ✅ Filing & documentation of Drawback Shipping Bills.
• ✅ Support for Brand Rate / Special Brand Rate applications.
• ✅ Representation before Customs & DGFT authorities.
• ✅ Ensuring maximum refunds with full compliance.
• ✅Duty Drawback on Reexports u/s 74 of Customs Act 1962.