Duty drawback.. Its urgent

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CA Kavita Patil (Querist)
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18 August 2010
Dear Expert,

We are the trading concern where we are exporting the imported materials related to swimming pool & Life style products, components & technologies.
Duty drawback can be claimed or not on these materials?
Is there any restriction for the products or the country for availing duty drawback??

Pl guide
Thanks & Regards,
Kavita Patil

CA Sanat Pyne

CA Sanat Pyne (Expert)
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18 August 2010 It may be noted that duty drawback under section 75 is granted when imported materials are used in the manufacture of goods which are then exported, while duty drawback under section 74 is applicable when imported goods are re-exported as it is and article is easily identifiable.

Section 74 of Customs Act, 1962 provide for drawback if the goods are re-exported as such or after use. This may happen in cases like import for exhibitions, goods rejected or wrong shipment etc. The re-exported goods should be identifiable as having been imported and should be re-exported within two years from date of payment of duty when they were imported. This period (of two years) can be extended by CBE&C on sufficient cause being shown. These should be declared and inspected by Customs Officer. Original shipping bill under which the goods were imported should be produced. The goods can be exported as cargo by air or sea, or as baggage or by post. - . - . - After inspection, export and submission of application with full details, 98% of the customs duty paid while importing the goods is repaid as drawback.

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CA Kavita Patil

CA Kavita Patil (Querist)
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18 August 2010 but is the same rules are applicable if the export is in course of sales business

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