Transfer of duty drawback amount to exporters' bank account started

06-Jun-2024 11:17 AM

New Delhi. The Central Board of Indirect Taxes and Customs (CBIC) has started sending the duty drawback amount directly to the bank account of exporters in a transparent and effective manner from June 5, 2024. This transfer (deposit) through electronic medium is expected to provide great relief to the industry trade sector.

Exporters were demanding this for a long time. The payment of duty drawback amount to the bank account of exporters will be done automatically through Public Finance Management System (Public Finance Management System or PFMS) and this is another great effort of CBIC towards ensuring business convenience without any hindrance in it.

This will reduce the time taken to pay the duty drawback amount as it will not require manual work. Along with this, transparency in the payment process will also increase.

Under Section 75 of the Customs Act, 1962, there is a provision for exemption of customs duty on any imported goods or any excise duty leviable on any item which is used in the manufacture of export products.

This is called duty drawback or refund. The processing of the claim made by the exporters for duty drawback is done by the 'Customs Automated System (CAS).

CBIC is playing an important role in continuously making best efforts to improve the ease of doing business in India. Duty drawback helps the exporters in export promotion and it is also in accordance with the rules and provisions of the World Trade Organization.