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Circular No. 21/2017 -Customs

F. No. 609/54/2017-DBK
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs
*****
New Delhi, dated 30
th
June, 2017
To,
Principal Chief Commissioners / Principal Directors General,
Chief Commissioners / Directors General,s
Principal Commissioners / Commissioners,
all under CBEC

Madam/Sir,

Subject: Drawback of Integrated Tax and Compensation Cess paid on imported goods upon re-export
under Section 74 of the Customs Act, 1962

As you are aware, Section 74 of the Customs Act, 1962 provides for drawback of duties paid
at time of importation when the imported goods are re-exported. Hitherto this drawback inter alia
comprised refund of basic customs duty and additional duties under Section 3 of the Customs Tariff
Act (CTA), 1975. In this regard, Re-export of Imported Goods (Drawback of Customs Duties) Rules,
1995 refer.

2. Under the GST regime, goods upon import shall be subject to integrated tax and
compensation cess in terms of Sections 3(7) and 3(9) respectively of the CTA, 1975. Further, in terms
of Section 3(12) of the CTA, 1975, the provisions of the Customs Act, 1962 and rules and regulations
made thereunder relating inter alia to drawback shall apply to integrated tax and compensation cess
also. Accordingly, drawback under Section 74 would include refund of integrated tax and
compensation cess along with basic customs duty, etc.

3. In this regard, the definition of “drawback” under Rule 2 (a) of the Re-export Rules, 1995 has
been suitably amended to include refund of duty or tax or cess as referred in the CTA, 1975.
Notification No. 57/2017-Customs (N.T.) dated 29.6.2017 may be referred in this regard.

4. In order to prevent dual benefit while sanctioning drawback under Section 74 of the Customs
Act, 1962, it may be ensured that a certificate duly signed by the Central/State/UT GST officer,
having jurisdiction over the exporter is obtained, that no credit of integrated tax /compensation cess
paid on imported goods has been availed or no refund of such credit or integrated tax paid on re-
exported goods has been claimed. All other extant instructions in respect of drawback claims under
Section 74 remain unchanged.

5. Suitable Public Notice for information of the trade and Standing Order for guidance of the
staff may kindly be issued. Difficulties faced, if any, in implementation of this Circular may be brought
to the notice of the Board.

Yours faithfully,


(Nitish K. Sinha)
Joint Secretary to the Government of India
circulars no 21 2017 | iKargos