what are the different types of
Industries write the drownback in india
Answers
Duty Drawback provisions are made to grant rebate of duty or tax chargeable on any imported / excisable materials and input services used in the manufacture of export goods. The duties and taxes neutralized under the scheme are
(i) Customs and GST in respect of inputs and
(ii) GST in respect of input services.
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Explanation:
The Four Main Types of Duty Drawback:
1. Manufacturing Direct Identification Drawback – When duty-paid imported material is used to manufacture a product, which is subsequently exported from the United States, U.S. import duty may be recovered. It is, however, necessary to trace the duty-paid imported material through manufacture and export.
2. Manufacturing Substitution Drawback – When imported duty-paid, duty-free or domestic material of the same kind and quality as the imported duty-paid designated material is used to produce the exported product, U.S. import duty may be recovered. This is true even when none of the designated merchandise may have been used to produce the exported articles.
3. Unused Merchandise Direct Identification Drawback – When material is imported duty-paid and subsequently exported unused, U.S. import duty may be recovered. It is, however, necessary to trace the duty-paid imported material through to export.
4. Unused Merchandise Substitution Drawback – When unused material, which is commercially interchangeable with the imported duty-paid material, is exported, U.S. import duty may be recovered. It is important to note that, under the provision, the imported duty paid material does not have to be exported if the substituted merchandise is.
Claimants under manufacturing or unused merchandise drawback may, if approved, file retroactively, provided that the drawback claims are filed within three years of the date of export. For many companies, this initial recovery of duty can be quite substantial.