Instruction No. 21/2020-Customs
F. No. 609/41/2018-DBK
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
New Delhi, dated 16th of December, 2020
All Principal Chief Commissioners/Chief Commissioners
of Customs/Customs (Preventive)/ Customs and Central Taxes &
All Principal Directors General/ Directors General under CBIC
Subject: Instructions for time bound processing of Duty Drawback claims
The undersigned is directed to state that to reduce the pendency and improve the rate of disposal of duty drawback claims, various timelines relating to duty drawback scheme have been conveyed in the Action Plan of CBIC for 2020-21 through DGPM’s d.o. letter F. No. 503/01/2020-T dated 04.08.2020.
2. Among the action points, it has been mentioned therein that all remaining drawback claims should be positively disposed of by 31.03.2021 and that while doing so the target of disposing drawback within 7 working days should be achieved.
3. It is to inform that in the 5th meeting of the National Committee on Trade Facilitation (NCTF), it has been instructed that at least 90% of Drawback should be credited within a time period of 3 days. Further, the refund may be deposited into the customer account in T+2 days.
4. As regard the time taken for payment of duty drawback by banks to the exporters accounts, it is to mention that as per the Circular dated 24.04.2018 issued by the Office of the Principal CCA, CBIC, it has already been instructed to the authorized banks that the credit/refund of the drawback amount to the exporters’ account may be done either on the same day of receiving the Computerized Customs Drawback Advice along with the supporting cheque or on the next working day.
5. In supersession of the timeline referred in para 2 above relating to disposal of drawback claims within 7 working days, it is instructed that the above-cited time-limit given by NCTF for crediting of duty drawback within a period of 3 days should be strictly complied with. All Zones are requested to take necessary action accordingly. A report on action taken in this regard may be sent to the Board by 25.12.2020.