Question

Mention the important provisions of duty drawbacks in india

Answer 1

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Duty drawback provisions are given under section 74 and 75 of the Customs Act, 1962. section 74 allows duty drawback on re-export of duty paid goods. Whereas section 75 allows drawback on imported goods used in the manufacture of export goods. In order to facilitate the drawback procedures, the Central Government is empowered to make rules. Pursuant to such power, the Central Government has issued two rules, i.e., Re-export of Imported goods (Drawback of Custom Duties) Rules, 1995 and Customs and Central Excise Duties and Service Tax Drawback Rules, 1995.

Drawback on re-export of duty paid goods under Section-74

Section 74 of the Act grants duty drawback upto 98% of the import duty paid on goods, if the goods are re-exported by the importer. The importer is entitled to drawback subject to the fulfilment of the following conditions:

Goods are imported into India by making payment of customs duty;
Goods are identified to the satisfaction of the Assistant or Deputy Commissioner of Customs as the goods, which were originally imported;
Goods have entered for export either on a shipping bill through sea or air, or on a bill of export through land, or as baggage, or through post and the proper officer should have permitted clearance of the goods for export;
Goods are entered for export within two years from the date of payment of import duty (period can be extended on sufficient grounds being shown).

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