74. Drawback allowable on re-export of duty-paid goods.—(1) When any goods capable of being
easily identified which have been imported into India and upon which 1
[any duty has been paid on
importation,—
(i) are entered for export and the proper officer makes an order permitting clearance and loading
of the goods for exportation under section 51; or
(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it,
makes a declaration of its contents to the proper officer under section 77 (which declaration shall be
deemed to be an entry for export for the purposes of this section) and such officer makes an order
permitting clearance of the goods for exportation; or
(iii) are entered for export by post under 2
[clause (a) of section 84] and the proper officer makes
an order permitting clearance of the goods for exportation,
ninety-eight per cent. of such duty shall, except as otherwise hereinafter provided, be re-paid as
drawback, if—]
(a) the goods are identified to the satisfaction of the 3
[Assistant Commissioner of Customs or
Deputy Commissioner of Customs] as the goods which were imported; and
(b) the goods are entered for export within two years from the date of payment of duty on the
importation thereof:
Provided that 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.
(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods
which have been used after the importation thereof shall be such as the Central Government, having
regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification
in the Official Gazette, fix.
4
[(3) The Central Government may make rules for the purpose of carrying out the provisions of this
section and, in particular, such rules may—
(a) provide for the manner in which the identity of goods imported in different consignments
which are ordinarily stored together in bulk, may be established;
(b) specify the goods which shall be deemed to be not capable of being easily identified; and
(c) provide for the manner and the time within which a claim for payment of drawback is to be
filed.]
(4) For the purposes of this section—
(a) goods shall be deemed to have been entered for export on the date with reference to which the
rate of duty is calculated under section 16;
(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of
the provisional duty shall be deemed to be the date of payment of duty.
75. Drawback on imported materials used in the manufacture of goods which are
exported.—(1) Where it appears to the Central Government that in respect of goods of any class or
description 5
[manufactured, processed or on which any operation has been carried out in India] 6
[, being
goods which have been entered for export and in respect of which an order permitting the clearance and
1. Subs. by Act 80 of 1985, s. 6, for certain words (w.e.f. 27-12-1985).
2. Subs. by Act 13 of 2018, s. 85, for ―section 82‖ (w.e.f. 28-3-2018).
3. Subs. by Act 27 of 1999, s. 100, for ―Assistant Commissioner of Customs‖ (w.e.f. 11-5-1999).
4. Subs. by Act 22 of 1995, s. 60, for sub-section (3) (w.e.f. 26-5-1995).
5. Subs. by s. 61, ibid., for ―manufactured in India‖ (w.e.f. 26-5-1995).
6. Subs. by Act 11 of 1983, s. 52, for ―and exported to any place outside India,‖ (w.e.f. 13-5-1983).
62
loading thereof for exportation has been made under section 51 by the proper officer], 1
[or being goods
entered for export by post under 2
[clause (a) of section 84] and in respect of which an order permitting
clearance for exportation has been made by the proper officer], 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
3
[manufacture or processing of such goods or carrying out any operation on such goods], the Central
Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect
of such goods in accordance with, and subject to, the rules made under sub-section (2):
4
[Provided that no drawback shall be allowed under this sub-section in respect of any of the aforesaid
goods which the Central Government may, by rules made under sub-section (2), specify, if the export
value of such goods or class of goods is less than the value of the imported materials used in
the 3
[manufacture or processing of such goods or carrying out any operation on such goods] or class of
goods, or is not more than such percentage of the value of the imported materials used in
the 3
[manufacture or processing of such goods or carrying out any operation on such goods] or class of
goods as the Central Government may, by notification in the Official Gazette, specify in this behalf:
Provided further that where any drawback has been allowed on any goods under this sub-section and
the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within
the time allowed under the 5
[Foreign Exchange Management Act, 1999 (42 of 1999)], such drawback
shall 6
[except under such circumstances or such conditions as the Central Government may, by rule,
specify,] be deemed never to have been allowed and the Central Government may, by rules made under
sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback.]
7
[(1A) Where it appears to the Central Government that the quantity of a particular material imported
into India is more than the total quantity of like material that has been used in the goods 8
[manufactured,
processed or on which any operation has been carried out in India] and exported outside India, then, the
Central Government may, by notification in the Official Gazette, declare that so much of the material as is
contained in the goods exported shall, for the purpose of sub-section (1), be deemed to be imported
material.]
(2) The Central Government may make rules for the purpose of carrying out the provisions of
sub-section (1) and, in particular, such rules may provide—
9
[(a) for the payment of drawback equal to the amount of duty actually paid on the imported
materials used in the manufacture or processing of the goods or carrying out any operation on the
goods or as is specified in the rules as the average amount of duty paid on the materials of that class
or description used in the manufacture or processing of export goods or carrying out any operation on
export goods of that class or description either by manufacturers generally or by persons processing
or carrying on any operation generally or by any particular manufacturer or particular person carrying
on any process or other operation, and interest if any payable thereon;]
4
[(aa) for specifying the goods in respect of which no drawback shall be allowed;
(ab) for specifying the procedure for recovery or adjustment of the amount of any drawback
which had been allowed under sub-section (1)
10[or interest chargeable thereon];]
(b) for the production of such certificates, documents and other evidence in support of each claim
of drawback as may be necessary;
1. Ins. by Act 80 of 1985, s. 7 (w.e.f. 13-5-1983).
2. Subs. by Act 13 of 2018, s. 86, for ―section 82‖ (w.e.f. 28-3-2018).
3. Subs. by Act 22 of 1995, s. 61, for ―manufacture of such goods‖ (w.e.f. 26-5-1995).
4. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991).
5. Subs. by Act 20 of 2002, s. 125, for ―Foreign Exchange Regulation Act, 1973 (46 of 1973)‖ (w.e.f. 11-5-2002).
6. Ins. by Act 8 of 2011, s. 46 (w.e.f. 8-4-2011).
7. Ins. by Act 25 of 1978, s. 10 (w.e.f. 1-7-1978).
8. Subs. by Act 22 of 1995, s. 61, for ―manufactured in India‖ (w.e.f. 26-5-1995).
9. Subs. by s. 61, ibid., for clause (a) (w.e.f. 26-5-1995).
10. Ins. by Act 22 of 1995, s. 61 (w.e.f. 26-5-1995).
63
(c) for requiring the 1
[manufacturer or the person carrying out any process or other operation] to
give access to every part of his manufactory to any officer of customs specially authorised in this
behalf by the 2
[Assistant Commissioner of Customs or Deputy Commissioner of Customs] to enable
such authorised officer to inspect the processes of 3
[manufacture, process or any other operation
carried out] and to verify by actual check or otherwise the statements made in support of the claim for
drawback.
4
[(d) for the manner and the time within which the claim for payment of drawback may be filed;]
4
[(3) The power to make rules conferred by sub-section (2) shall include the power to give drawback
with retrospective effect from a date not earlier than the date of changes in the rates of duty on inputs
used in the export goods.]
5
[75A. Interest on drawback.—(1) Where any drawback payable to a claimant under section 74 or
section 75 is not paid within a 6
[period of 7
[one month]] from the date of filing a claim for payment of
such drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the
rate fixed under section 27A from the date after the expiry of the said 6
[period of 7
[one month]] till the
date of payment of such drawback:
8
* * * * *
9
[(2) Where any drawback has been paid to the claimant erroneously or it becomes otherwise
recoverable under this Act or the rules made thereunder, the claimant shall, within a period of two months
from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed
under 10[section 28AA] and the amount of interest shall be calculated for the period beginning from the
date of payment of such drawback to the claimant till the date of recovery of such drawback.]
76. Prohibition and regulation of drawback in certain cases.—(1) Notwithstanding
anything hereinbefore contained, no drawback shall be allowed—
11* * * * *
(b) in respect of any goods the market-price of which is less than the amount of drawback due
thereon;
(c) where the drawback due in respect of any goods is less than 12[fifty rupees].
(2) Without prejudice to the provisions of sub-section (1), if the Central Government is of opinion
that goods of any specified description in respect of which drawback may be claimed under this Chapter
are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that
drawback shall not be allowed in respect of such goods or may be allowed subject to such restrictions and
conditions as may be specified in the notification.
13*****
1. Subs. by Act 22 of 1995, s. 61, for ―manufacturer‖ (w.e.f. 26-5-1995).
2. Subs. by Act 27 of 1999, s. 100, for ―Assistant Commissioner of Customs‖ (w.e.f. 11-5-1999).
3. Subs. by Act 22 of 1995, s. 61, for ―manufacture‖ (w.e.f. 26-5-1995).
4. Ins. by s. 61, ibid. (w.e.f. 26-5-1995).
5. Ins. by s. 62, ibid. (w.e.f. 26-5-1995).
6. Subs. by Act 8 of 1999, s. 2, for ―period of three months‖ (w.e.f. 8-1-1999).
7. Subs. by Act 32 of 2003, s. 115, for ―two months‖ (w.e.f. 14-5-2003).
8. The proviso omitted by s. 115, ibid. (w.e.f. 14-5-2003).
9. Subs. by Act 22 of 2007, s. 98, for sub-section (2) (w.e.f. 11-5-2007).
10. Subs. by Act 23 of 2012, s. 125, for ―section 28AB‖ (w.e.f. 8-4-2011).
11. Clause (a) omitted by Act 11 of 1983, s. 53 (w.e.f. 13-5-1983).
12. Subs. by s. 53, ibid., for ―five rupees‖ (w.e.f. 13-5-1983).
13. Chapter XA (containing sections 76A to 76N) omitted by Act 22 of 2007, s. 99 (w.e.f. 11-5-2007). Earlier Chapter XA
inserted by vide Notification No. 43/2003-Cus. (N.T.) (w.e.f. 11-5-2004) dated 22-7-2003 read with notification No. 62/2003-
Cus (N.T.), dated 14-8-2003; No. 84/2003-Cus. (N.T.), dated 14-10-2003; No. 105/2003-Cus. (N.T.), dated 29-11-2003 and No.
116/2003-Cus. (N.T.), dated 31-12-2003; No. 25/2004-Cus. (N.T.), dated 28-2-2004; No. 46/2004-Cus. (N.T.), dated 31-3-2004
and No. 57/2004-Cus. (N.T.), dated 30-4-2004) by s. 126 of the Finance Act, 2002 (20 of 2002).
64
76A. [Notification of special economic zone.] Omitted by the Finance Act, 2007 (22 of 2007), s. 99
(w.e.f. 11-5-2007).
76B. [Application of provisions.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76C. [Establishment and control.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76D. [Admission of goods.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76E. [Exemption from duties of customs.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76F. [Levy of duties of customs.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76G. [Authorised operations.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76H. [Goods utilised with a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76-I. [Drawback on goods admitted to a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-
2007).
76J. [Duration of stay.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76K. [Security.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76L. [Transfer of ownership.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76M. [Removal of goods.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).
76N. [Closure of a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007).