Question

This enables the exporter to obtain a refund of the import duties (custom duty) paid on inputs, which are processed for manufacture of goods to be exported?

(a) Refund Claim
(b) Refund Order
(c) Duty Drawback
(D) Either od the above ​

Answer 1

For Customs purpose drawback means the refund of duty of customs and duty of central Excise that are chargeable on imported and indigenous materials used in the manufacture of Exported goods.

Types of Duty Drawback :-

Manufacturing direct identification drawback.  

Manufacturing substitution drawback.  

Unused merchandise direct identification drawback.  

Unused merchandise substitution drawback.

Hence, the correct option is (c) Duty Drawback .

Answer 2

A refund order allows the exporter to get a refund of the import duties (custom duty) paid on inputs that are processed for the production of goods that will be exported.

Explanation:

• The term "refund/drawback" refers to a particular amount of Customs/Central Excise duties remitted or paid by the government on the exporting of the goods on which they were collected, sometimes the entire amount, sometimes only a portion of it. In the context of customs, drawback refers to the reimbursement of customs and excise duties levied on imported and indigenous materials used in the manufacture of exported goods.
• There are mainly two types of refunds:

(1) Drawback/Refund under Section 74 of the Customs Act 62, allows for the drawback of duty paid on products that were first imported based on payment of duty and then re-exported.

(2) Other refund is under Section 75 in which, export of goods manufactured in India is regulated by rules enacted under the Act.

Hence, the answer is Option (B).