It's all about conditions related to duty drawback

1. CONDITIONS OF DUTY
DRAWBACK WITH CASE STUDY
IN CUSTOM DUTY
Grishma Udyog (18)
Nikita Balkar (35)
Shivam Telore (55)
Tejaswini Patil (70)

2. WHAT IS DUTY DRAWBACK?
• The duty drawback scheme provides exporters with a refund of customs duty paid on unsend imported
goods or goods that will be treated, proceed or incorporate into Other goods for export.
• It can help exporters reduce their cost, increase their competitiveness and access new market.
• Duty drawback also involves some challenges such as Complex procedure, documentation requirements,
time limits and compliance risks.
• The export items that will now enjoy a higher duty drawback include marine and seafood products,
automobile tyres and bicycle tyres/tubes, leather and articles made of leather, glass handicrafts and
bicycles.

3. TYPES OF DUTY DRAWBACK
Three primary types of drawback:
• Manufacturing drawback:
applies to imported goods that are used in manufacturing exported products.
• Unused merchandise drawback:
applies to imported goods that are re-exported without any changes, and rejected.
• Merchandise drawback:
covers imported goods that are found to be defective or do not meet specifications.

4. PERCENTAGE OF DUTY PAID AS
DRAWBACKS

5. CONDITIONS OF DUTY DRAWBACK
• The goods should have been imported into india
• The duty of customs should be paid thereon
• The goods should be capable of being easily identified as the goods, which were Originally imported.
• The goods should have been 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 after proper examination of the goods and after ensuring that there is No prohibition or
restriction on their export should have permitted clearance of the Goods for export.
• The goods are identified to the satisfaction of the assistant or deputy commissioner of Customs as the goods, which were imported, and
• The goods are entered for export within two years from the date of payment of duty on The importation thereof
Once these conditions are satisfied, then the export goods are entitled to payment of Drawback of an amount equal to 98%. The conditions
could be amended or modified Depending upon other factors.

6. NO DUTY DRAWBACK
Draw back of import duty will not be allowed in respect of the following goods, if they have
been used after their importation in India:
• Wearing Apparel;
• Tea Chests
• Exposed cinematograph films passed by Board of Film Censors in India.
• Unexposed photographic films, paper and plates, and X-ray films.

7. DUTY DRAWBACK DOCUMENT
• Import shipping bill
• Bill of entry
• Import invoice
• Duty payment receipt
• Export invoice
• Export packaging list
• Export shipping bill

8. CASE STUDY
ABC
India
LTD
Union of
India
VS

9. Fact:
ABC India imported a special lifting equipment (hydra-jack) to transport a giant buddha statue.
They promised to re-export the equipment after use. During transportation, the statue
accidentally sank in the lake, and the hydra-jack was returned unused. ABC India claimed a full
98% drawback under section 74, which applies to re-exported goods.
Arguments:
Government: you can only get a full drawback if the re-exported goods weren't used in india. Since
the statue sank, the hyrda-jack technically got used, so you only deserve an 85% drawback under
section 74 rules.
ABC India: we didn't actually use the equipment as intended (lifting the statue). The accident
shouldn't penalize our full drawback Court claim.
Decision:
In deciding the matter, the court took a clear view that whether the jack in question was used or
not is a question of fact. Since the statue did not reach the central rock (gibraltar) where the
statue had to be hoisted for installation, it is clear that the hydra – jack could not be used in india.
The court held that in these circumstances, the drawback was admissible under section 74

10. CONCLUSION
In conclusion, understanding the nuances of duty drawback is crucial for businesses engaged in international
trade. The process involves reclaiming customs duties paid on imported goods upon their subsequent export.
Through our presentation, we delved into the meaning of duty drawback, explored its various types, and
discussed the percentage calculations.
In wrapping up our presentation, we encourage businesses to navigate the duty drawback landscape
diligently. By doing so, they can harness the potential benefits to boost competitiveness, stimulate exports,
and contribute to the overall growth of the economy. As we move forward, staying informed and compliant
with duty drawback conditions remains paramount for successful international trade endeavors.

11. THANK YOU