drawback of custom duty if imported goods are used in manufacture of exported goods.

Under the Customs Act 1962 drawback of Customs duty paid at the time of Imporatation of goods are available in the following two cases:

1. When finished goods is imported and exported within the stipulated time 

2. When imported material is used in manufacture of final product and the final product is exported in the stipulated time.

In both the above said cases the goods imported must be identifiable to the satisfaction of the ooficer of the Customs at the time of export that the goods being exported is the same goods which was imported.The draw back of duty paid is available on the time period within which the goods imported is rexported.For exemple if the goods is rexported with in 3 months from the date of import 98% of the duty paid will be allowed as duty drawback 2% will be deducted as an administartive charges.If goods is rexported within 6 month from the date of import 70% of the duty paid will be allowed as duty draw so the percentages of duty drawback will be reduced as per the period of usage (period betwee import and rexaport) if teh goods is exported after 36 months from the date of import  no duty drawback will be allowed..

So far as documents are concerned the following documents are required to be submitted with drawback application:

1) Application for duty drawback in the preiscribed Form ANNEXURE II

2)   Triplicate Copy of shipping bill in Original

3) Copy of  Import Invoice with Bill of Entry,duty paid challan or on line recipt of bank showing duty paid

4) Export Invoice,packing list 

5) Copy of Customs examination Report at the time of Import of the goods

6) Certificate from GST authority in original that IGST paid at the time of Import along with Customs  is claimed, if calimed a letter from the duty drawback applicant on the letter head stating that IGST is claimed.

7) Calculation of Drawback of the Customs duty paid on the letter head of the applicant .

No duty drawback shall be allowed in the following cases:

a) In respect of any goods the market price of which is less than the amount of draw back due thereon

b) Where the amount of drawback in respect of any goods is less than the specified amount (right now is Rs.50)