Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs, New Delhi
Circular No. 72/2002-Cus., dated 1-11-2002
F. No. 609/178/2002-DBK
Sub: Drawback u/s 74 of Customs Act in respect of re-exported goods
ASSOCHAM 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 reexported back to the same supplier who had supplied the goods. In some cases Customs is reportedly insisting 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.
2. The issue 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 Customs Act specifying the percentage of duty drawback which is available in respect of such re-exported goods.
Neither Section 74 nor relevant Rule 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.
3. It is, therefore, clarified that so long as the conditions specified in Section 74 of Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications 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 that the re-export should take place from the same port.
4. Suitable Public Notice for the guidance of Trade and Standing Order for customs field officers may be issued.
5. Receipt of this Circular may kindly be acknowledged.