Customs Act 1962
Drawback
Section
75. Drawback on imported
materials used in the manufacture of goods which are exported (Relevant
Rules) (Relevant Updates)
(1) Where
it appears to the Central Government that in respect of
goods
of any class or
description manufactured, processed or on which any operation has been carried
out in
India
, being goods which have been entered for export and in respect of
which an order permitting the clearance and loading thereof for exportation has
been made under section 51 by the
proper officer
, or being goods entered for
export by post under 2[clause (a) of
section 84]
[helldodold[section 82]helldod] and in respect of which an order permitting
clearance for exportation has been made by the proper officer, a drawback should
be allowed of duties of customs chargeable under this Act on any imported
materials of a class or description used in the manufacture or processing of
such goods or carrying out any operation on such goods, the Central Government
may, by notification in the Official Gazette, direct that drawback shall be
allowed in respect of such goods in accordance with, and subject to, the rules
made under sub-section (2).
Provided that no drawback shall be allowed
under this sub-section in respect of any of the aforesaid goods which the
Central Government may, by rules made under sub-section (2), specify, if the
export value of such goods or class of goods is less than the
value
of the
imported materials used in the manufacture or processing of such goods or
carrying out any operation on such goods or class of goods, or is not more than
such percentage of the value of the imported materials used in the manufacture
or processing of such goods or carrying out any operation on such goods or class
of goods as the Central Government may, by notification in the Official Gazette,
specify in this behalf:
Provided further that where any drawback
has been allowed on any goods under this sub-section and the sale proceeds in
respect of such goods are not received by or on behalf of the
exporter
in India
within the time allowed under the Foreign Exchange Management Act, 1999, such
drawback shall 1[except under such
circumstances or such conditions as the Central Government may, by rules,
specify] be deemed never to have been allowed and the Central Government may, by
rules made under sub-section (2), specify the procedure for the recovery or
adjustment of the amount of such drawback.
(1A) Where it appears to the Central
Government that the quantity of a particular material imported into India is
more than the total quantity of like material that has been used in the goods manufactured, processed or on which any operation has been carried out in India
and exported outside India, then, the Central Government may, by notification in
the Official Gazette, declare that so much of the material as is contained in
the goods exported shall, for the purpose of sub-section (1), be deemed to be
imported material.
*(2) The Central Government may make rules
for the purpose of carrying out the provisions of sub-section (1) and, in
particular, such rules may provide -
(a) for the payment of drawback equal to
the amount of duty actually paid on the imported materials used in the
manufacture or processing of the goods or carrying out any operation on the
goods or as is specified in the rules as the average amount of duty paid on the
materials of that class or description used in the manufacture or processing of
export goods
or carrying out any operation on export goods of that class or
description either by manufacturers generally or by persons processing or
carrying on any operation generally or by any particular manufacturer or
particular person carrying on any process or other operation, and interest if
any payable thereon;
(aa) for specifying the
goods
in respect
of which no drawback shall be allowed;
(ab) for specifying the procedure for recovery or
adjustment of the amount of any drawback which had been allowed under
sub-section (1) or interest chargeable thereon;
(b) for the production of such
certificates, documents and other evidence in support of each claim of drawback
as may be necessary;
(c) for requiring the manufacturer or the
person carrying on any process or other operation to give access to every part
of his manufactory to any officer of customs specially authorised in this behalf
by the Assistant Commissioner of Customs or Deputy commissioner of
Customs to enable such authorised officer to
inspect the process of manufacture, process or any other operations carried out
and to verify by actual check or otherwise the statements made in support of the
claim for drawback;
(d) for the manner and the time within
which the claim for payment of drawback may be filed.
(3) The power to make rules conferred by
sub-section (2) shall include the power to give drawback with retrospective
effect from a date not earlier than the date of changes in the rates of duty on
inputs used in the export goods.
1. Inserted
Vide Section 46 of the
Finance Act 2011
2. Substituted
Vide
Section 86 of the Finance Act 2018