According to section 74 of Customs Act 1962, when duty paid imported goods are re-exported in used or unused condition within two years, the importer may claim refund of import duty up to maximum 98% of the customs duty paid at the time of importation as duty drawback. The following conditions to be satisfied in this regard:
The goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported.
The goods are entered for export within two years from the date of payment of duty on the importation.
However, in any particular case, the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period, as it may deem fit.
To claim drawback under Section 74, the exporter should file the shipping bill under claim for drawback in the prescribed Form and after assessment the goods are to be examined by the Custom officers for purposes of physical identification.
After re-export of product importer has to submit application within 3 month to custom authority for refund of duty paid.
Please Note: Re-Export has to be done within 2 year from the date of import made.
