𝗔𝗱𝗺𝗶𝘀𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗔𝗜𝗥 𝗗𝘂𝘁𝘆 𝗗𝗿𝗮𝘄𝗯𝗮𝗰𝗸 𝗼𝗻 𝗘𝘅𝗽𝗼𝗿𝘁𝘀 𝘄𝗶𝘁𝗵 𝗡𝗼𝗻-𝗗𝘂𝘁𝘆 𝗣𝗮𝗶𝗱 𝗜𝗻𝗽𝘂𝘁𝘀 – 𝗜𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻 𝗡𝗼. 𝟬𝟭/𝟮𝟬𝟮𝟱-𝗖𝘂𝘀𝘁𝗼𝗺𝘀.

CBIC has noted instances of AIR duty drawback being denied or reduced for exports using inputs that are non-duty paid or duty-concessional. As per Board Circular No. 19/2005-Customs (21.03.2005), AIR rates are determined based on the weighted average of duties paid on inputs, without requiring verification of exempted inputs used in manufacturing. Field formations should not investigate such input details. Authorities must ensure strict compliance with this clarification. Suitable standing orders should be issued accordingly.

Notification Reference: Customs
Instruction No. 01/2025- Customs
(28/02/2025)