The Central Government has amended the Customs and Central Excise Duties Drawback Rules, 2017 to streamline the duty drawback mechanism for exports made through postal channels, including those filed electronically, according to a notification issued by the Ministry of Finance.
The changes were notified through Customs Notification No. 03/2026 (N.T.), dated January 15, 2026, and have come into force with immediate effect.
Electronic Postal Export Entries Now Recognised for Drawback
Under the amended rules, entries made under Section 84 of the Customs Act, 1962, for exports by post have been formally recognised as valid documents for claiming duty drawback, alongside traditional shipping bills or bills of export.
This amendment addresses a long-standing procedural gap faced by exporters using postal routes, particularly small exporters and e-commerce sellers, where manual filings and ambiguity over drawback eligibility often caused delays.
Key Changes Introduced by the Amendment
The notification introduces multiple clarifications across the Drawback Rules:
- Rule 8 has been amended to explicitly include entries filed under Section 84 for postal exports as eligible documents for drawback claims
- Rule 12 now clarifies procedures where postal export entries are filed manually under Section 84
- Rule 13 aligns drawback processing provisions for postal exports with those applicable to other exports
- Rule 14 introduces a crucial provision recognising electronic entries filed under Section 84 as valid drawback claims
Most notably, a new sub-rule (1A) has been inserted in Rule 14, stating that an electronic entry for exports by post will be deemed to be a drawback claim on the date it is received through the Electronic Data Interchange (EDI) system, after customs clearance and loading permission is granted by the proper officer.
Reduced Procedural Uncertainty for Exporters
Customs experts say the amendment brings greater procedural certainty and aligns postal exports with India's broader digital customs framework. By recognising electronic filings and clarifying the exact date on which a drawback claim is deemed to be filed, the changes are expected to:
- Reduce disputes over eligibility and timelines
- Improve ease of compliance for small exporters and MSMEs
- Support growing cross-border e-commerce exports
The clarification also ensures that drawback claims are retained by the customs officer who permits export clearance, strengthening audit trails while avoiding duplication.
Amendment Linked to Customs and Excise Powers
The amendment has been issued under Section 75 of the Customs Act, 1962 and Section 37 of the Central Excise Act, 1944, reinforcing the government's intent to modernise export incentive procedures through subordinate legislation rather than structural changes.
The principal Drawback Rules were originally notified in 2017, and this amendment builds on that framework to reflect evolving export practices and electronic filing systems.
Policy Context
The move comes amid increased policy focus on export facilitation, particularly for non-traditional exporters and postal shipments, which have gained prominence with the rise of digital marketplaces and global small-value trade.
The notification has been signed by Om Prakash Meena, Under Secretary, Department of Revenue, Ministry of Finance.
Official copy of the notification has been attached
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