Compliance Requirement Under Rules in Accordance with the Sections:

1. Conditions of Drawback (Rule 3, Rule 9 of Customs and Central Excise Duties Drawback Rules, 2017)

Drawback on export goods may be allowed at rates set by the Central Government. Where goods are made from imported or excisable materials with partial or no duty paid, or where duty has been rebated, refunded, or credited (in part or whole) under the Customs Act or Central Excise Act, drawback shall be reduced accordingly. No drawback shall be allowed if: (i) goods, except tea chests used as packing for export of blended tea, have been taken into use after manufacture; (ii) goods are produced or manufactured using imported or excisable materials on which duties have not been paid; (iii) drawback is claimed on jute batching oil used in the manufacture of export goods such as jute (including Bimlipatam jute or mesta fibre) yarn, twist, twine, thread, cords and ropes; or (iv) goods being packing materials are used in the export of jute yarn, fabrics or manufactures (including Bimlipatam jute or mesta fibre) where jute predominates in weight. Further, under Rule 9, drawback determined under Rule 3 shall not exceed one-third of the market price of the export product.

2. Effective Date for Application of Amount or Rate of Drawback (Rule 5 of Customs and Central Excise Duties Drawback Rules, 2017)

The period up to which any amount or rate of drawback determined under Rule 3 or revised under Rule 4 shall be in force will be specified by the Central Government. Where the amount or rate of drawback is allowed with retrospective effect, such amount or rate shall be allowed from such date as may be specified by the Central Government by notification in the Official Gazette, which shall not be earlier than the date of changes in the rates of duty on inputs used in the export goods. The provisions of Section 16, or sub-section (2) of Section 83, of the Customs Act, 1962 shall determine the amount or rate of drawback applicable to any goods exported under these Rules.

3. Effective Date for application of amount or rate of drawback where it has not been determined (Rule 6(1), Rule 8 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

Where no drawback rate or amount has been determined, an exporter may, within 3 months from the relevant date (as per Rule 5(3)), apply to the jurisdictional Principal Commissioner or Commissioner of Customs for fixation of the same, furnishing all material facts including proportions of material or component usage and duties paid thereon. If an exporter exports goods from more than one place, the application may be made to the jurisdictional Principal Commissioner or Commissioner of Customs at any one such place of export. The 3-month period may be extended by a further 3 months by the Assistant or Deputy Commissioner or Deputy Commissioner, and further extended by 6 months by the Principal Commissioner or Commissioner of Customs. For extension applications, a fee of 1% of FOB value or Rs. 1,000 (whichever is less) is payable to the Assistant or Deputy Commissioner, and 2% of FOB value or Rs. 2,000 (whichever is less) to the Principal Commissioner or Commissioner. Under Rule 8, no drawback rate shall be determined under Rule 6 or 7 where the export value of goods in the shipping bill, bill of export, or postal entry under Section 84 is less than the value of imported materials used, or not more than such notified percentage of such value as specified by the Central Government.

4. Provisional Payment of Drawback Subject to Final Determination (Rule 6(2), Rule 8 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

An exporter may seek provisional drawback pending final determination of the drawback amount while applying for fixation under Rule 6(1). The Principal Commissioner or Commissioner of Customs may, after review, grant provisional payment up to the full amount claimed. For granting provisional drawback, the authority may require the exporter to execute a general bond or a consignment-specific bond (with such surety or security as directed) up to the full amount claimed. The exporter undertakes to refund the drawback if it is later found inadmissible or to repay any excess if a lower amount is finally determined. Once the final drawback rate or amount is determined, the provisional payment is adjusted against the final entitlement; any excess must be repaid to Customs, and any shortfall shall be paid to the exporter. Rule 8 bars determination of drawback under Rule 6 or 7 where the export value declared in the shipping bill, bill of export, or postal entry is less than, or not more than the notified percentage of, the value of imported materials used in manufacture.

5. Duty Drawback Where the Amount or Rate Determined is Less Than 80% of Duties Paid (Rule 7, Rule 8 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

If the drawback determined under Rule 3 or Rule 4 is less than 80% of the duties paid on the goods produced or manufactured, the exporter (if no prior claim has been made) may, within 3 months from the relevant date under Rule 5(3), apply to the jurisdictional Principal Commissioner or Commissioner of Customs for redetermination, furnishing all material facts including proportions of material or component usage and duties paid. If exporting from multiple places, the application may be made to the jurisdictional authority at any one place. The 3-month period may be extended by the Assistant or Deputy Commissioner by 3 months and further by the Principal Commissioner or Commissioner by 6 months, on application and inquiry, with reasons recorded for refusal. The applicable fee is 1% of FOB value or Rs. 1,000 (whichever is less) payable to the Assistant or Deputy Commissioner, and 2% of FOB value or Rs. 2,000 (whichever is less) to the Principal Commissioner or Commissioner. On application, the authority may allow drawback at an appropriate rate if the Rule 3 or Rule 4 rate is less than 80% of the eligible amount. Rule 8 bars determination under Rule 6 or 7 if the export value (as per shipping bill, bill of export, or postal entry) is less than, or does not exceed the notified percentage of, the value of imported materials used.

6. Form for Claim of Drawback (Rule 12 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

For postal exports under a drawback claim, the package must bear the words ‘DRAWBACK EXPORT’ along with the consignee’s address. The exporter must submit the prescribed Form (as detailed in Annexure I of the Rules) in quadruplicate to the Postal Authority. The date on which the claim form is received by Customs from the Postal Authority shall be treated as the date of filing for the purposes of Section 75A of the Customs Act, and intimation of the same shall be given in the prescribed form. If the claim form is not complete in all respects, the exporter shall be informed of the deficiencies by a deficiency memo in the prescribed form within 15 days of receipt from the Postal Authority, and such claim shall be deemed not to have been received. When the exporter complies with the requirements specified in the deficiency memo within 30 days of its return, an acknowledgement shall be issued by the proper officer in the prescribed form.

7. Statement/Declaration for Exports Other Than Postal Exports under Rule 12 (Rule 13 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

For exports other than postal exports under Rule 12, the exporter must declare in the shipping bill, bill of export, or entry under Section 84 of the Customs Act, the details of goods and state the drawback claim, confirming that no separate rebate of Customs or Excise duty on inputs, packing, or containers has been or will be claimed. The Principal Commissioner or Commissioner of Customs may exempt the exporter or agent from compliance if satisfied that failure was due to reasons beyond their control, after considering a representation and recording reasons. The exporter must also furnish to Customs a shipment invoice or document detailing the description, quantity, and value of goods. Where drawback rate or amount is determined under Rule 6 or 7, the exporter shall make an additional declaration in the shipping bill, bill of export, or postal entry confirming that there is no change in the manufacturing formula or quantity per unit of imported inputs used, and that such inputs are duty-paid.

8. Claim of Drawback on Exported Goods Other Than Postal Exports under Rule 12 (Rule 14 of Customs and Central Excise Duties Drawback Rules, 2017 read with Customs and Central Excise Duties Drawback (Amendment) Rules, 2026)

The electronic shipping bill in EDI ports, or the triplicate copy of the bill of export, shall be deemed to be a drawback claim on the date Customs makes an order permitting clearance and loading of goods for export under Section 51 of the Customs Act, and shall be retained by the proper officer. For postal exports under Section 84, the electronic entry is deemed to be the claim on receipt in the EDI system after such order and shall be retained likewise. The drawback claim must be accompanied by: a copy of the export contract or letter of credit; a copy of ARE-1, wherever applicable; an insurance certificate, wherever necessary; and a copy of the communication of rate where drawback is determined under Rule 6 or 7. If the claim is incomplete in material particulars or lacks required documents, it shall be returned within 10 days with a deficiency memo in the prescribed form and shall be deemed not filed for purposes of Section 75A. On resubmission after rectification, it is treated as a fresh claim.

9. Application for Supplementary Claim for Drawback under Rule 16 (Rule 16 of Customs and Central Excise Duties Drawback Rules, 2017)

If the drawback paid to an exporter is less than the amount to which the exporter is entitled, the exporter may file a supplementary claim in the form prescribed in Annexure II within 3 months from: the date of publication in the Official Gazette of the rate or amount under Rule 3 or Rule 4; or the date of communication of the revised rate or amount under Rule 6 or Rule 7; or the date of payment or settlement of the original drawback claim — whichever is applicable. No supplementary drawback claim shall be entertained except as specifically provided under this Rule. The date of filing of a supplementary claim for purposes of Section 75A shall be the date on which the Dated Receipt Stamp is affixed on the claim, provided it is complete in all respects and an acknowledgement in the prescribed form is issued. Where a claim is incomplete or not accompanied by required documents, it shall be returned to the claimant within 15 days with a deficiency memo and shall be deemed not to have been received.

10. Repayment of Erroneous or Excess Payment of Drawback or Interest by Claimant (Rule 17 of Customs and Central Excise Duties Drawback Rules, 2017)

Where an amount of drawback or interest has been paid erroneously or in excess of what the claimant is entitled to, the claimant must, on demand by a proper officer of Customs, repay the erroneous or excess amount. If the claimant fails to repay the demanded amount, it shall be recovered in the manner laid down under Section 142(1) of the Customs Act, 1962.

11. Recovery of Drawback Amount When Export Proceeds Not Realised (Rule 18 of Customs and Central Excise Duties Drawback Rules, 2017)

If export proceeds are not realised within the period permitted (including any extension) under the Foreign Exchange Management Act, 1999, the drawback paid to the exporter or claimant shall be recovered, except in cases specified under sub-rule (5). This time-limit does not apply to goods exported from a Domestic Tariff Area to a Special Economic Zone. Where only part of the sale proceeds is realised, the drawback recoverable shall be proportionate to the unrealised portion relative to total proceeds. If, after such recovery, the exporter subsequently realises the sale proceeds and furnishes evidence within 3 months from the date of realisation, the recovered drawback shall be repaid by the Assistant or Deputy Commissioner, provided the proceeds are realised within the period permitted by RBI. The Principal Commissioner or Commissioner of Customs may extend this 3-month period by up to 9 months on application, subject to payment of a fee of 1% of FOB value or Rs. 1,000 (whichever is less).