𝗔𝗜𝗥 𝗗𝘂𝘁𝘆 𝗗𝗿𝗮𝘄𝗯𝗮𝗰𝗸 𝗼𝗻 𝗘𝘅𝗽𝗼𝗿𝘁𝘀 𝘄𝗶𝘁𝗵 𝗣𝗮𝗿𝘁𝗶𝗮𝗹𝗹𝘆 𝗡𝗼𝗻-𝗗𝘂𝘁𝘆 𝗣𝗮𝗶𝗱 𝗜𝗻𝗽𝘂𝘁𝘀 – 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻.

CBIC has clarified that All Industry Rate (AIR) of duty drawback should not be denied or reduced for export goods manufactured using inputs, some of which are non-duty paid or subject to concessional duty.

• Reference: Board Circular No. 19/2005-Customs dated March 21, 2005, which states that AIR duty drawback rates are determined based on the average duties paid on inputs. The calculation considers a weighted average of imported and indigenous inputs used by exporters, and field officers should not investigate whether exempted inputs were used.
• Directive: Field formations must strictly adhere to the clarification in Circular No. 19/2005-Customs, and suitable standing orders should be issued to ensure compliance.

Notification Reference: Customs
Instruction No. 01/2025 – Customs
28/03/2025