Export Incentive Schemes
Duty Drawback
Advisory Services
The Duty Drawback Scheme is one of the most widely used export incentives available to Indian exporters. It allows businesses to recover customs duties paid on inputs used in the manufacture of exported goods, thereby reducing overall export costs and improving international competitiveness. For many exporters, accurately identifying applicable drawback rates and ensuring proper shipping bill declarations can be critical to receiving the full benefit under the scheme. Proper advisory support can help businesses avoid procedural errors, ensure compliance with customs regulations, and maximise rebate claims. Shangrila Corporate Services Pvt Ltd provides structured advisory to help exporters evaluate eligibility, manage documentation requirements, and optimise duty drawback benefits for their export operations.
Service at a Glance
Refund of customs duties paid on inputs used in exports
Refund of customs duties paid on inputs used in exports
Reduction in overall export costs
Reduction in overall export costs
Improved global price competitiveness
Improved global price competitiveness
Enhanced working capital availability
Enhanced working capital availability
Overview
What is Duty Drawback Scheme?
The Duty Drawback Scheme is an export incentive program introduced by the Government of India to refund customs duties and certain taxes paid on imported or domestically sourced inputs used in the manufacture of exported goods.
The objective of the scheme is to ensure that exports remain competitive in international markets by eliminating the burden of duties embedded in exported products.
Duty drawback is granted to exporters in the form of rebates against export shipments, allowing them to recover duties paid during the production process.
The scheme is administered by the Directorate General of Foreign Trade and implemented through the Indian Customs system.
Key Service Highlights
- Refund of customs duties paid on inputs used in exports
- Reduction in overall export costs
- Improved global price competitiveness
- Enhanced working capital availability
- Support for manufacturing exporters
Advisory Note
Structured advisory helps evaluate eligibility, prepare accurate documentation, and reduce execution risk while pursuing available trade policy benefits.
Suitable For
Who Should Consider Duty Drawback?
This advisory is most relevant for businesses that need eligibility clarity, documentation accuracy, and practical support through the scheme lifecycle.
Merchant exporters sourcing goods from domestic manufacturers
Businesses exporting manufactured or processed goods
Companies exporting products with imported inputs
Key Benefits
Key Benefits of Duty Drawback
Structured implementation can help improve cost efficiency, reduce procedural risk, and support better trade outcomes.
01
Refund of customs duties paid on inputs used in exports
02
Reduction in overall export costs
03
Improved global price competitiveness
04
Enhanced working capital availability
05
Support for manufacturing exporters
Process
How Duty Drawback Works
A practical workflow for evaluating eligibility, preparing documentation, submitting applications, and managing follow-through.
01
Export of eligible products through customs clearance
02
Filing of shipping bills with duty drawback declaration
03
Application of notified drawback rates
04
Verification by customs authorities
05
Direct credit of drawback amount to the exporter's account
06
The drawback amount is calculated based on notified rates or brand rate determination under applicable provisions.
Common Pitfalls
Common Challenges Businesses Face
These issues often lead to delays, missed benefits, documentation gaps, or unnecessary compliance exposure.
Uncertainty regarding eligibility of products for drawback benefits
Errors in shipping bill declarations
Incorrect selection of drawback rates
Delays in receiving drawback payments
Lack of clarity on documentation requirements
Professional advisory helps exporters ensure accurate claims and avoid procedural errors
Our Services
Our Approach to Duty Drawback
End-to-end advisory support focused on eligibility, documentation, filing, compliance, and benefit optimisation.
Eligibility Assessment
Evaluation of export products for duty drawback benefits
Drawback Rate Identification
Guidance on applicable notified rates or brand rate options
Shipping Bill Compliance Support
Advisory on correct declaration and documentation during export filing.
Claim Verification Assistance
Support in reviewing drawback claims to ensure accuracy
Regulatory Compliance Advisory
Guidance on maintaining documentation and compliance with customs regulations.
Documentation
Documents Required to Get Started
Share these documents with our team so we can assess eligibility and begin structuring the advisory process.
Import Export Code (IEC)
Export invoices and shipping bills
Product HS classification
Input procurement details
Export transaction records
FAQ
Frequently Asked Questions
It is a program that refunds customs duties paid on inputs used in exported goods.
Exporters of goods manufactured using duty-paid inputs may be eligible.
It is calculated based on notified rates or brand rate determination under applicable provisions.
The drawback amount is usually credited after export shipment verification by customs.
Eligibility depends on applicable scheme provisions and policy guidelines.
Why SCS
Why Work with Shangrila Corporate Services
We help exporters maximise incentive benefits while ensuring regulatory compliance.
Expertise in export incentive schemes and trade regulations
Experience in assisting exporters with customs and DGFT compliance
Structured approach to export incentive advisory
Practical guidance for exporters navigating procedural requirements
Get Expert Advisory
Maximise Your Export Incentive Benefits
Evaluate eligibility for duty drawback benefits Ensure proper filing of export declarations Maximise rebate claims under the scheme
Contact Us
No commitment | Expert consultation