Customs
A refund of customs duties paid on imported materials subsequently used in the manufacture of exported goods.
Section 75 is the drawback that matters to a manufacturer-exporter, and its shape explains why drawback schedules exist. Where goods have been “manufactured, processed or on which any operation has been carried out in India”, have been entered for export, and have had clearance and loading for exportation permitted under section 51, the Central Government may direct that “a drawback should be allowed of duties of customs chargeable under this Act on any imported materials of a class or description used in the manufacture or processing of such goods or carrying out any operation on such goods”. Two features follow. Drawback is relief on the duty borne by imported inputs, not a refund on the exported article as such. And it operates by notification in the Official Gazette for a class or description of goods — which is why exporters work from rate schedules rather than from first principles.
Primary legislation, and only that. The text quoted above is the Customs Act, 1962 as published by CBIC and amended to 30 March 2022. The Act repeatedly leaves the operating detail to rules, regulations and notifications — forms, rates, qualifications, time limits — so the statute tells you what is required and the subordinate instrument tells you how. Check the current rules and any later amendment before relying on a procedure, and remember that a figure or a rate in a notification changes far more often than the section that authorises it.
Duty Drawback (DBK) is a refund of customs duties paid on imported raw materials subsequently used in the manufacture of exported goods. Two types: (1) All Industry Rate (AIR) — published rates for broad product categories; (2) Brand Rate — specific rate calculated for your actual input costs. Claimed through shipping bill at time of export.
From the AJG lexicon archive (July 2026).
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Compiled reference — verify current specifics at the source.
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