Duty Drawbacks:
Starting from June 5th, 2024, the Central Board of Indirect Taxes and Customs (CBIC) has initiated electronic disbursal of duty drawback amounts directly to exporters’ bank accounts through the Public Finance Management System (PFMS).
- Duty drawback, governed by section 75 of the Customs Act, 1962, refunds customs duty on imported or excisable materials used in the production of export goods.
- This mechanism assists exporters in mitigating some of the expenses incurred during the export process, particularly within the supply or value chain.
- Electronic disbursal of duty drawback aims to streamline the process, reduce processing time, eliminate manual intervention, and enhance transparency in customs operations.
- This initiative aligns with CBIC’s commitment to paperless customs and trade facilitation, building upon its implementation of the WTO Trade Facilitation Agreement (TFA).
