DEFINITION AND OBJECTIVES
The term drawback is applied to a certain amount
of duties of Customs/central excise, some times the whole, some times only a
part remitted or paid by Government on the exportation of the commodities on
which they were levied. To entitle goods to drawback, they must be exported to
a foreign port, the object of the relief afforded by the Drawback being to
enable the goods to be disposed of in the foreign market as if they had never
been taxed at all. For Customs purpose drawback means the refund of duty of
customs and duty of central Excise that are chargeable on imported and
indigenous materials used in the manufacture of Exported goods.
GOODS ELIGIBLE FOR
DRAWBACK
This scheme applies to
a. export goods imported into India as such
b. export goods imported into India after having been taken for use
c. export goods manufactured / produced out of
imported material
d. export goods manufactured / produced out of indigenous material
e. Export goods manufactured /produced out of
imported or and indigenous materials.