Duty drawback

Duty drawback is a refund that can be set off against future liabilities. It was introduced by the finance ministry as a rebate of duty chargeable on imported items used in manufacturing or processing of goods that are to be re-exported. The centre is empowered to provide for duty drawbacks under the Customs Act of 1975. Recently, the government reduced the time period in which duty drawback claims are to be processed from 7 days to 3 days.