 Duty drawback:

 Sec 75: Draw back on material used in manufacture

of gods which are exported
 if any excise duty, custom duty, service tax have been
paid on material which is used in goods which are
exported. Then duty drawback is allowed in respect of
excise duty, custom duty and service tax.
 Goods exported under this section are different from
inputs as the inputs are manufactured, processed or any
other operation are carried on them before export.
 Rate per unit of final product is fixed by taking into
account (a) mode of manufacture (b) input-output ratio
 ( c ) Standardization of product.
 Duty drawback on re-export of goods:
 Drawback in relation to any goods exported out of
India and same was previously imported into India.
This happens in cases like import for exhibition,
goods rejected and wrong shipment.
 The identity of the goods exported should be
established as the same which have been
imported on payment of duty.
 Goods are exported within 2 years from payment
of export duty.
 The rate of duty drawback is 98%.
Warehousing of goods:
Period for which goods remain in warehouse:
 Capital goods meant for 100% EOU- 5 Years (period can
be extended by commissioner to any extent).
 Any other goods meant for 100 % EOU- 3 Years (period
can be extended by commissioner to any extent).
 Any other goods-1 year (period can be extended by
commissioner for 6 months and by chief commissioner to
any extent)
 In case of perishable goods, the commissioner can reduce
the above period of 3 years or 1 years.
 Warehousing Bond: The importer has to execute a
warehousing bond, which is equal to twice the amount
duty assessed on the warehoused goods.

 Interest on warehoused goods: In case the
warehoused goods meant for 100% EOU remain
in warehouse beyond stipulated of five or three
years by reason of extension or otherwise,
interest will charged @15%p.a. after expiry of
such five or three years. In case of any other
goods, if they remain in warehouse beyond 90
days from date of order for deposit. Interest will
charged @15% p.a. after expiry of 90 days.
 Owners right to deal with warehouse goods:
 Inspect the goods.
 Separate damaged/ deteriorated goods.
 Prevent the goods from loss
 Removal of goods from the warehouse: Goods can
be removed from the warehouse on payment of
duty and ex-bond clearance is to filed. The goods
can be removed from the warehouse without
payment of duty for export.