1. DUTY DRAWBACKS Drawback is the refund of duties, taxes, and fees imposed on imported merchandise which is subsequently exported

2. The Duty Drawback Scheme enables exporters to obtain a refund of Customs duty paid on imported goods where those goods will be treated, processed, or incorporated in other goods for export; or are exported unused since importation. 3. The drawback rates have been determined on the basis of certain broad parameters including:- The prevailing prices of inputs, Standard Input Output Norms (SION), share of imports in the total consumption of inputs, FOB value of export goods and the applied rates of duty. The incidence of duty on Furnace Oil has been factored in the drawback calculations. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has also been factored. 4. The total number of items in the drawback schedule now number approximately 4000 As a general policy, it has been decided that there will be no value cap on items in the drawback schedule, where the composite duty drawback rate is less than or equal to 3%. Further, there are certain goods especially in engineering and chemicals sectors where because of the wide variation in prices, no value cap has been assigned. 5. Who can claim Drawback? Only the person who is the legal owner of the goods at the time the goods are exported, or a person to whom this right has been assigned, is eligible to make a claim for Duty Drawback 6. What goods are eligible for Duty Drawback? Duty drawback is available on most goods on which Customs duty was paid on importation and which has been exported. 7. What goods are not eligible for Duty Drawback? Duty drawback can't be claimed where:- Goods have been used in India other than for the purposes of inspection, exhibition, processing, treatment or further manufacture (i.e. goods can't be claimed if used in the filtration or as manufacturing machinery of further manufactured product); Goods are valued at exportation at less than 25 per cent of their imported customs value; or The import duty paid on the goods has been refunded. 8. REFERENCES; www.fieo.org www.icai.org www.ask.com www.wikipeedia.com www.referenceforbusiness.com www.indiastudychannel.com 9. Any Questions...?