Drawback U/S 74 of the Customs Act in respect of Re-exported Goods
Circular No. 72 dated 1st November 2002
have represented to Board that member exporters are facing difficulties in
availing duty drawback in respect of goods, which were imported earlier and are
subsequently re-exported under section 74 of the Customs Act. It is reported
that in such cases Customs insist that for the purpose of availing drawback
under section 74, the goods should be re-exported back to the same supplier who
has supplied the goods. In some cases Customs is reportedly that for the purpose
of availing drawback u/s 74, re-export of the goods imported earlier should take
place from the same port through which the goods were imported.
The issued is examined. Drawback on re-export of goods (which were
imported earlier) is eligible in terms of Section 74 of the Customs Act and
re-export of imported goods (Drawback of Customs Duties) Rules, 1995 outline
procedure to be followed for availing drawback. Customs notifications have also
been issued u/s 74 of the Custom Act specifying the percentage of duty drawback,
which is available in respect of such re-exported goods. Neither Section 74 nor
relevant Rules or Customs Notification require that for the purpose of availing
drawback u/s 74 of Customs Act, the goods should be re-exported back to the same
supplier or that such re-export should only take place from the port through
which the goods were imported earlier.
It is, therefore, clarified that so long as the conditions specified in
Section 74 of Customs Act, Re-exported of Imported Goods (Drawback of Customs of
Customs Duties) Rules, 1995 and relevant notification issued under section 74
are fulfilled, drawback u/s 74 should be allowed on merits without insisting on
re-export of goods to the same supplier or the re-export should take place from
the same port.
Suitable Public Notice for the Guidance of Trade and Standing Order for
customs field officers may be issued.
Receipt of this Circular may kindly be acknowledged.