NEWS – The Duty Drawback Scheme is an initiative by the Central Board of Indirect Taxes and Customs (CBIC) to facilitate exports and promote economic growth

HIGHLIGHTS

Purpose – The scheme aims to provide rebates on Customs and Central Excise duties incurred on imported and excisable materials used in the production of goods meant for export. This helps exporters reduce costs and remain competitive in the global market.

Provisions

• Customs Act, 1962: The duty drawback provisions are outlined in this act, ensuring legal compliance and clarity in rebate procedures.
• Zero-Rated Exports: By zero-rating exports, the scheme ensures that exported goods do not carry the burden of specified taxes, enhancing their competitiveness.

Eligible Goods

• Goods imported into India and subsequently exported
• Goods taken for use in India before export
• Goods manufactured/produced from imported or indigenous materials

Claim Criteria

• To claim duty drawback, the following criteria must be met:
• The exporter must be the legal owner of the goods at the time of export.
• Customs duty must have been paid on imported goods.
• Duty drawback is available on most goods on which customs duty was paid on importation and subsequently exported.

Key Facts about CBIC

• Department of Revenue: CBIC operates under the Ministry of Finance, Government of India, overseeing all indirect tax matters.
• Administrative Authority: CBIC formulates policies, collects customs and excise duties, and prevents smuggling.
• Subordinate Organizations: CBIC oversees Custom Houses, Central Excise and GST Commissionerates, and the Central Revenues Control Laboratory.
• Tax Administration: CBIC ensures taxes on foreign and inland travel are administered as per the law, and collection agencies promptly deposit collected taxes to the public exchequer.