Duty drawback refunds the customs duty paid on imported and excisable inputs used to make exported goods, under the Customs and Central Excise Duties Drawback Rules, 2017. Most exporters claim the All Industry Rate (AIR) through the shipping bill; others apply for a brand rate based on actual duties. Import Export Advisor files and follows up drawback claims, and the fee depends on the size of the claim.
Duty Drawback: key facts
- Legal basis
- Customs and Central Excise Duties Drawback Rules, 2017
- Routes
- All Industry Rate (AIR) or brand rate
- Paid through
- PFMS, into your validated bank account
- Our fee
- Based on the drawback claim amount
- Typical time
- Varies by claim
Who is Duty Drawback for?
Right for you if
- Manufacturer exporters using imported raw material or components
- Exporters whose AIR is too low compared to the duty actually paid
- Exporters with drawback sanctioned but not credited
Not what you need if
- Exporters importing inputs duty-free under Advance Authorisation, since drawback is not available on duty that was never paid
What documents are needed for Duty Drawback?
We send an exact checklist for your business type before filing. Typically you will need:
- Shipping bills with the drawback claim
- Bills of entry for imported inputs (for brand rate)
- Input-output data and cost sheets (for brand rate)
- Validated refund bank account details
What is the difference between AIR and brand rate drawback?
AIR is a standard rate per tariff item, claimed automatically through the shipping bill. A brand rate is fixed for your specific product based on the duties you actually paid, and is used when no AIR exists or the AIR is too low.
| All Industry Rate (AIR) | Brand rate | |
|---|---|---|
| How it is set | Notified schedule by tariff item | Calculated from your own input data |
| How to claim | Declared on the shipping bill | Separate application with cost data |
| Best for | Most standard products | Products with high imported input content |
| Effort | Low | High, needs documentation |
How do you claim duty drawback?
For AIR, the claim is made through the shipping bill and credited after the export is processed, provided your bank account is validated on PFMS. For brand rate, an application with input and cost data is filed with the jurisdictional authority.
- 01Assess eligibility and the best route
- 02Prepare claim documents
- 03File with Customs
- 04Track until credited to your account
Why is drawback sanctioned but not received?
The most common reason is a PFMS bank validation failure. We check the validation status first; see PFMS validation.
What the service includes
- Route selection (AIR or brand rate)
- Claim preparation and filing
- Follow-up with Customs
- Tracking until credit
Government and council fees, where they apply, are stated before filing. Compare every fee on the pricing page.
Duty Drawback: frequently asked questions
Can I claim drawback and RoDTEP together?
Yes, generally. They refund different taxes. See RoDTEP vs duty drawback.
How is the drawback fee charged?
Our fee depends on the claim amount and complexity. We quote after reviewing the shipping bills.
How is drawback paid?
Drawback is credited to your bank account through PFMS after the claim is processed.
Can I claim drawback with Advance Authorisation?
Not on inputs imported duty-free. Compare the two in Advance Authorisation vs duty drawback.
Guides for this service
Other export services
Sources and official portals
Import Export Advisor is a private consultancy, not a government body. Approval decisions rest with DGFT, Customs and the relevant councils.