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Refund/ Claim of Countervailing duty as Duty Drawback

Circular No. ES/ 260 /2017-18                                                            December 13, 2017

To: Members of the Council

Sub Refund/ Claim of Countervailing duty as Duty Drawback

Dear Member,

This is to inform you that CBEC vide its Circular No. 49/ 2017- Customs  dated 11.12.2017 has issued a clarification on Refund/ Claim of Countervailing duty as Duty Drawback

The Board has clarified that –

  • Countervailing Duties (CVD) which is leviable under the Customs Tariff Act, is rebatable as Drawback in terms of the Customs Act. 
  • Since Countervailing Duties are not taken into consideration while fixing All Industry Rates of Duty Drawback.
  • The Drawback of such Countervailing Duties can be claimed under an application for Brand Rate under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 and/or the Customs and Central Excise Duties Drawback Rules, 2017, as the case may be.
  • This means that drawback shall be admissible only where the inputs that suffered Countervailing Duties were actually used in the goods exported as confirmed by the verification conducted for fixation of Brand Rate.
  • Where imported goods subject to Countervailing Duties are exported out of the country as such, then the Drawback payable under the Customs Act, 1962 would also include the incidence of Countervailing Duties as part of total duties paid, subject to fulfilment of other conditions.  

Members may please make a note of the above.

Thanking you,

Yours faithfully,

S.  BALARAJU
EXECUTIVE DIRECTOR

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