Customs Act, 1962 › Chapter X — Drawback

Section 74. Drawback allowable on re-export of duty-paid goods

Customs Act, 1962

Bare Act

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 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 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 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.

(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.

Judgments on Section 74

  • Van Oord India Pvt Ltd vs Customs Ahmedabad — CESTAT, 13 Nov 2025. Physical non-availability of goods is no bar to confiscation under Section 111 or redemption fine under Section 125, but the fine must be commensurate with the duty benefit actually accrued, and a Section 114AA penalty…
  • Rajbir Singh vs Union Of India & Ors. — Delhi High Court, 8 Apr 2025. Where Rule 16 of the Duty Drawback Rules prescribes no period of limitation, the general three-year limitation cannot be presumed to apply by default, especially where there are strong suspicions of fraudulent availment…
  • M/S Kanushi Enterprises vs Union Of India & Ors. — Delhi High Court, 13 Feb 2025. Mere unlocking/activation of a mobile phone before export is mere 'configuration' of the product for the destination territory and does not constitute 'taken into use' under the proviso to Rule 3 of the Duty Drawback…
  • Yash Pakka Limited vs Lucknow Prev — CESTAT, 14 Feb 2024. Under Section 149 of the Customs Act, 1962, a shipping bill may be amended or converted even after export if supported by documentary evidence in existence at the time of export, and a circular's self-imposed time limit…
  • Union Of India vs M/S. B.T. Patil And Sons Belgaum… — Supreme Court of India, 5 Feb 2024. Where duty drawback on a deemed export is not refunded within three months of the claim, the claimant is statutorily entitled to interest under Section 75A(1) of the Customs Act at the rate fixed under Section 27A (15%…
  • Nissan Motor India Private Limited vs Chennai (Port Export) — CESTAT, 26 Nov 2025. A post-export amendment of a shipping bill cannot be refused under Section 149 of the Customs Act, 1962 where the supporting documentary evidence existed at the time of export, since a mere procedural lapse in making a…
  • Turbo Energy Pvt Ltd vs Cc Air Cargo Ch - Vii — CESTAT, 14 Oct 2025. Discretion under the proviso to Rule 12(1)(a) of the Drawback Rules, 1995 must be exercised in a free, fair and impartial manner, and furnishing clear and cogent reasons for allowing or rejecting a drawback request is…
  • Titagarh Wagons Limited vs -Patna(Prev) — CESTAT, 20 Nov 2024. An appeal to CESTAT against an order relating to payment of duty drawback is barred by proviso clause (c) to Section 129A(1) of the Customs Act, 1962; the remedy lies in a revision under Section 129DD before the Central…
  • Jk Tyres And Industries Ltd vs Commissioner Of Customs -Ii Chennai — CESTAT, 21 Aug 2024. Where a statute uses the word 'shall' the provision is prima facie mandatory and what is prescribed must be done in the manner prescribed, so conversion of free shipping bills into drawback shipping bills cannot be…
  • Chennai (Port Export) vs Suguna Poultry Farm Ltd — CESTAT, 10 Jan 2024. Where the department does not dispute the claimant's substantive entitlement to drawback under section 74 and the refund was sanctioned after due verification, an appeal on the mere technicality that refund was claimed…
  • Ms Yash Pakka Limited vs C.C. Lucknow — CESTAT, 23 Aug 2023. A request under Section 149 of the Customs Act, 1962 for conversion of free shipping bills into drawback shipping bills cannot be rejected without affording the exporter an opportunity of hearing — an order passed…
  • M/S.Flextronics India Pvt. Ltd vs Joint Secretary / Director (Drawback) — Madras High Court, 2 Feb 2023. An authority deciding a Rule 7A relaxation request under the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 must pass a reasoned, speaking order objectively considering the exporter's explanation…
  • M/S.Flextronics India Pvt. Ltd vs Joint Secretary / Director (Drawback) — Madras High Court, 30 Jan 2023. An authority deciding a Rule 7A relaxation claim under the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 must objectively consider the exporter's explanation for delay and pass a reasoned,…
  • Commissioner Of Customs, Ahmedabad vs Baroda Rayons Corporation Ltd — Gujarat High Court, 2 Jan 2023. If recourse to a Board circular, read in isolation, would have the effect of nullifying an adjudication confirming duty that has attained finality, such interpretation is necessarily bad in law.
  • Greaves Cotton Ltd vs Union Of India Reported In 2015 (325)… — Madras High Court, 4 Jan 2018. A genuine drawback claim on re-export under Section 74 should not be defeated by mere technicality of the Rule 5(1) time limit, for the Central Government has power under Rule 7A to relax the conditions and allow…
  • M/S Air India Ltd vs Commissioner Of Customs (Export), Acc, Mumbai — CESTAT, 22 Dec 2015. Conversion of a free shipping bill into a drawback shipping bill is permissible under Section 149 of the Customs Act, 1962, subject to establishment of the identity of the exported goods with the imported goods to the…
  • M/S. Vishal Beverages Pvt. Ltd. vs Union Of India And Anr. — Delhi High Court, 4 Aug 2014. An exporter invoking the Central Government's discretionary power under Rule 7A of the Re-export Rules to relax the time limit for a Section 74 drawback claim must come with clean hands, and relief can be refused where…
  • M/S.Schwing Stetter (India) Pvt. Ltd vs The Commissioner Of Customs (Exports) — Madras High Court, 5 Nov 2012. A writ of mandamus directing a speaking order on a Section 74 re-export drawback claim cannot be granted where the claimant has not first produced the prescribed records, including the triplicate shipping bill bearing…
  • M/S.Medopharm vs The Joint Secretary To The — Madras High Court, 27 Apr 2012. Drawback under Section 74 for re-export of imported goods is admissible only where the shipping bill is filed under Section 74 declaring the re-export, so that customs can verify the identity and eligibility of the…
  • Skb Overseas Corporation vs Joint Secretary (Drawback) M/O — Delhi High Court, 14 Dec 2011. 'Reasons are heart and soul of an order' — a statutory power such as the Central Government's Rule 7A power to relax the drawback rules must be exercised fairly by a reasoned order, and a short delay (here 22 days…

All 22 judgments