How to surrender Duty Drawback
This query is : Resolved
22 April 2025
We are an exporter of medical products and are eligible for the duty drawback. We exported the product to our customer against an advance payment. Currently, the customer has returned the product as he is unhappy. We have to surrender the duty drawback. Please advise.
12 August 2025
Procedure to Surrender Duty Drawback:
Check the relevant customs notifications / circulars:
The guidelines for surrendering duty drawback are generally issued by Central Board of Indirect Taxes and Customs (CBIC).
Usually, you must refund the drawback amount within a specified time frame.
Calculate the amount to be surrendered:
The full amount of duty drawback that was credited/paid for the returned goods.
File a refund/surrender application with the customs authorities:
Submit a letter/request to the jurisdictional customs office explaining the situation.
Provide documents showing the export, duty drawback claimed, and goods returned.
Attach proof of goods returned, such as return invoices or shipping documents.
Make payment/refund of the duty drawback amount:
Pay back the duty drawback amount to the Customs department.
The payment can be made through the prescribed mode (online payment or challan).
Adjust your accounting entries:
Reverse the duty drawback credit claimed earlier in your books.
Important points:
Surrendering duty drawback is mandatory if goods are returned or export order is cancelled.
If not surrendered, it may lead to penalties and interest under Customs law.
Customs may also seek details during audit or assessment.
Sample Accounting Entry for surrendering Duty Drawback:
Debit: Duty Drawback Refund Payable (liability)
Credit: Bank/Cash (payment made to Customs)
Reference for procedure:
Circular No. 08/2018-Customs (N.T.) dated 21.02.2018
Customs Manual / Notifications under the Drawback Scheme
Check the relevant customs notifications / circulars:
The guidelines for surrendering duty drawback are generally issued by Central Board of Indirect Taxes and Customs (CBIC).
Usually, you must refund the drawback amount within a specified time frame.
Calculate the amount to be surrendered:
The full amount of duty drawback that was credited/paid for the returned goods.
File a refund/surrender application with the customs authorities:
Submit a letter/request to the jurisdictional customs office explaining the situation.
Provide documents showing the export, duty drawback claimed, and goods returned.
Attach proof of goods returned, such as return invoices or shipping documents.
Make payment/refund of the duty drawback amount:
Pay back the duty drawback amount to the Customs department.
The payment can be made through the prescribed mode (online payment or challan).
Adjust your accounting entries:
Reverse the duty drawback credit claimed earlier in your books.
Important points:
Surrendering duty drawback is mandatory if goods are returned or export order is cancelled.
If not surrendered, it may lead to penalties and interest under Customs law.
Customs may also seek details during audit or assessment.
Sample Accounting Entry for surrendering Duty Drawback:
Debit: Duty Drawback Refund Payable (liability)
Credit: Bank/Cash (payment made to Customs)
Reference for procedure:
Circular No. 08/2018-Customs (N.T.) dated 21.02.2018
Customs Manual / Notifications under the Drawback Scheme
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- Taxable or Tax exempt
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- TDS Deducted AY-2013-14 Not Reflected in 26as
- ADVANCE PAYMENT OF ADVOCATE
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- GST not cancelled by tenant
- Capital gain on sale and purchase of plot
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
