The Customs Act, 1962
Administered Ministry: Ministry of Finance / Department of Revenue
Section
Section 59 Warehousing bond.
1[59. Warehousing bond.--The importer of any goods in respect of which a bill of entry for warehousing has been presented under section 46 and assessed to duty under section 17 or section 18 shall execute a bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself--
(a) to comply with all the provisions of the Act and the rules and regulations made thereunder in respect of such goods;
(b) to pay, on or before the date specified in the notice of demand, all duties and interest payable under sub-section (2) of section 61; and
(c) to pay all penalties and fines incurred for the contravention of the provisions of this Act or the rules or regulations, in respect of such goods.
(2) For the purposes of sub-section (1), the Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit an importer to execute a general bond in such amount as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect of the warehousing of goods to be imported by him within a specified period.
(3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section (2), furnish such security as may be prescribed.
(4) Any bond executed under this section by an importer in respect of any goods shall continue to be in force notwithstanding the transfer of the goods to another warehouse.
(5) Where the whole of the goods or any part thereof are transferred to another person, the transferee shall execute a bond in the manner specified in sub-section (1) or sub-section (2) and furnish security as specified under sub-section (3).]
(a) to comply with all the provisions of the Act and the rules and regulations made thereunder in respect of such goods;
(b) to pay, on or before the date specified in the notice of demand, all duties and interest payable under sub-section (2) of section 61; and
(c) to pay all penalties and fines incurred for the contravention of the provisions of this Act or the rules or regulations, in respect of such goods.
(2) For the purposes of sub-section (1), the Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit an importer to execute a general bond in such amount as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect of the warehousing of goods to be imported by him within a specified period.
(3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section (2), furnish such security as may be prescribed.
(4) Any bond executed under this section by an importer in respect of any goods shall continue to be in force notwithstanding the transfer of the goods to another warehouse.
(5) Where the whole of the goods or any part thereof are transferred to another person, the transferee shall execute a bond in the manner specified in sub-section (1) or sub-section (2) and furnish security as specified under sub-section (3).]
1. Subs. by Act 28 of 2016, s. 126, for section 59 (w.e.f. 14-5-2016).
Section 59A [Omitted.].
[Conditions for warehousing of certain goods.] Omitted by The Finance Act, 1994 (32 of 1994), s. 60 (w.e.f. 13-5-1994).
Section 60 Permission for removal of goods for deposit in warehouse.
1[60. Permission for removal of goods for deposit in warehouse.--(1) When the provisions of section 59 have been complied with in respect of any goods, the proper officer may make an order permitting removal of the goods from a customs station for the purpose of deposit in a warehouse.
2[Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria.]
(2) Where an order is made under sub-section (1), the goods shall be deposited in a warehouse in such manner as may be prescribed.]
2[Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria.]
(2) Where an order is made under sub-section (1), the goods shall be deposited in a warehouse in such manner as may be prescribed.]
1. Subs. by Act 28 of 2016, s. 127, for section 60 (w.e.f. 14-5-2016).
2. The proviso ins. by Act 13 of 2018, s. 82 (w.e.f. 28-3-2018).
2. The proviso ins. by Act 13 of 2018, s. 82 (w.e.f. 28-3-2018).
Section 61 Period for which goods may remain warehoused.
1[61. Period for which goods may remain warehoused.--(1) Any warehoused goods may remain in the warehouse in which they are deposited or in any warehouse to which they may be removed,--
(a) in the case of capital goods intended for use in any hundred per cent. export oriented undertaking, till the in the case of capital goods intended for use in any hundred per cent. export oriented undertaking or electronic hardware technology park unit or software technology park unit or any warehouse wherein manufacture or other operations have been permitted under section 65, till their clearance from the warehouse;
(b) in the case of goods other than capital goods intended for use in any hundred per cent. export oriented undertaking or electronic hardware technology park unit or software technology park unit or any warehouse wherein manufacture or other operations have been permitted under section 65, till their consumption or clearance from the warehouse; and
(c) in the case of any other goods, till the expiry of one year from the date on which the proper officer has made an order under sub-section (1) of section 60:
Provided that in the case of any goods referred to in this clause, the Principal Commissioner of Customs or Commissioner of Customs may, on sufficient cause being shown, extend the period for which the goods may remain in the warehouse, by not more than one year at a time:
Provided further that where such goods are likely to deteriorate, the period referred to in the first proviso may be reduced by the Principal Commissioner of Customs or Commissioner of Customs to such shorter period as he may deem fit.
(2) Where any warehoused goods specified in clause (c) of sub-section (1) remain in a warehouse beyond a period of ninety days from the date on which the proper officer has made an order under sub-section (1) of section 60, interest shall be payable at such rate as may be fixed by the Central Government under section 47, on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods:
Provided that if the Board considers it necessary so to do, in the public interest, it may,--
(a) by order, and under the circumstances of an exceptional nature, to be specified in such order, waive the whole or any part of the interest payable under this section in respect of any warehoused goods;
(b) by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section;
(c) by notification in the Official Gazette, specify the class of goods in respect of which the interest shall be chargeable from the date on which the proper officer has made an order under sub-section (1) of section 60.
Explanation.--For the purposes of this section,--
(i) "electronic hardware technology park unit" means a unit established under the Electronic Hardware Technology Park Scheme notified by the Government of India;
(ii) "hundred per cent. export oriented undertaking" has the same meaning as in clause (ii) of Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); and
(iii) "software technology park unit" means a unit established under the Software Technology Park Scheme notified by the Government of India.]
(a) in the case of capital goods intended for use in any hundred per cent. export oriented undertaking, till the in the case of capital goods intended for use in any hundred per cent. export oriented undertaking or electronic hardware technology park unit or software technology park unit or any warehouse wherein manufacture or other operations have been permitted under section 65, till their clearance from the warehouse;
(b) in the case of goods other than capital goods intended for use in any hundred per cent. export oriented undertaking or electronic hardware technology park unit or software technology park unit or any warehouse wherein manufacture or other operations have been permitted under section 65, till their consumption or clearance from the warehouse; and
(c) in the case of any other goods, till the expiry of one year from the date on which the proper officer has made an order under sub-section (1) of section 60:
Provided that in the case of any goods referred to in this clause, the Principal Commissioner of Customs or Commissioner of Customs may, on sufficient cause being shown, extend the period for which the goods may remain in the warehouse, by not more than one year at a time:
Provided further that where such goods are likely to deteriorate, the period referred to in the first proviso may be reduced by the Principal Commissioner of Customs or Commissioner of Customs to such shorter period as he may deem fit.
(2) Where any warehoused goods specified in clause (c) of sub-section (1) remain in a warehouse beyond a period of ninety days from the date on which the proper officer has made an order under sub-section (1) of section 60, interest shall be payable at such rate as may be fixed by the Central Government under section 47, on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods:
Provided that if the Board considers it necessary so to do, in the public interest, it may,--
(a) by order, and under the circumstances of an exceptional nature, to be specified in such order, waive the whole or any part of the interest payable under this section in respect of any warehoused goods;
(b) by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section;
(c) by notification in the Official Gazette, specify the class of goods in respect of which the interest shall be chargeable from the date on which the proper officer has made an order under sub-section (1) of section 60.
Explanation.--For the purposes of this section,--
(i) "electronic hardware technology park unit" means a unit established under the Electronic Hardware Technology Park Scheme notified by the Government of India;
(ii) "hundred per cent. export oriented undertaking" has the same meaning as in clause (ii) of Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); and
(iii) "software technology park unit" means a unit established under the Software Technology Park Scheme notified by the Government of India.]
1. Subs. by Act 28 of 2016, s. 128, for section 61 (w.e.f. 14-5-2016).
Section 62 [Omitted.].
[Control over warehoused goods.] Omitted by The Finance Act, 2016 (28 of 2016), s. 129 (w.e.f. 14-5-2016).
Section 63 [Omitted.].
[Payment of rent and warehouse charges.] Omitted by s. 129, ibid. (w.e.f. 14-5-2016).
Section 64 Owner’s right to deal with warehoused goods.
1[64. Owner's right to deal with warehoused goods.--The owner of any warehoused goods may, after warehousing the same,--
(a) inspect the goods;
(b) deal with their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods;
(c) sort the goods; or
(d) show the goods for sale.]
(a) inspect the goods;
(b) deal with their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods;
(c) sort the goods; or
(d) show the goods for sale.]
1. Subs. by Act 28 of 2016, s. 130, for section 64 (w.e.f. 14-5-2016).
Section 65 Manufacture and other operations in relation to goods in a warehouse.
(1) 1[With the permission of the Principal Commissioner of Customs or Commissioner of Customs and subject to such conditions] as may be prescribed, the owner of any warehoused goods may carry on any manufacturing process or other operations in the warehouse in relation to such goods.
(2) Where in the course of any operations permissible in relation to any warehoused goods under sub-section (1), there is any waste or refuse, the following provisions shall apply:--
(a) if the whole or any part of the goods resulting from such operations are exported, import duty shall be remitted on the quantity of the warehoused goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation to the goods exported:
Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if it had been imported into India in that form;
(b) if the whole or any part of the goods resulting from such operations are cleared from the warehouse for home consumption, import duty shall be charged on the quantity of the warehoused goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation to the goods cleared for home consumption.
(2) Where in the course of any operations permissible in relation to any warehoused goods under sub-section (1), there is any waste or refuse, the following provisions shall apply:--
(a) if the whole or any part of the goods resulting from such operations are exported, import duty shall be remitted on the quantity of the warehoused goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation to the goods exported:
Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if it had been imported into India in that form;
(b) if the whole or any part of the goods resulting from such operations are cleared from the warehouse for home consumption, import duty shall be charged on the quantity of the warehoused goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation to the goods cleared for home consumption.
1. Subs. by s. 131, ibid., for certain words (w.e.f. 14-5-2016).
Section 66 Power to exempt imported materials used in the manufacture of goods in warehouse.
If any imported materials are used in accordance with the provisions of section 65 for the manufacture of any goods and the rate of duty leviable on the imported materials exceeds the rate of duty leviable on such goods, the Central Government, if satisfied that in the interests of the establishment or development of any domestic industry it is necessary so to do, may, by notification in the Official Gazette, exempt the imported materials from the whole or part of the excess rate of duty.
Section 67 Removal of goods from one warehouse to another.
The owner of any warehoused goods may, with the permission of the proper officer, remove them from one warehouse to another, 1*** subject to such conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to which removal is permitted.
1. The words "without payment of duty" omitted by Act 55 of 1991, s. 5 (we.f. 23-12-1991).
Section 68 Clearance of warehoused goods for home consumption.
1[Any warehoused goods may be cleared from the warehouse] for home consumption, if--
(a) a bill of entry for home consumption in respect of such goods has been presented in the prescribed form;
2[(b) the import duty, interest, fine and penalties payable in respect of such goods have been paid; and]
(c) an order for clearance of such goods for home consumption has been made by the proper officer.
3[ 4[Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:
Provided further that] the owner of any warehoused goods may, at any time before an order for clearance of goods for home consumption has been made in respect of such goods, relinquish his title to the goods upon payment of 5*** penalties that may be payable in respect of the goods and upon such relinquishment, he shall not be liable to pay duty thereon:]
6[7[Provided also that] the owner of any such warehoused goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force.]
(a) a bill of entry for home consumption in respect of such goods has been presented in the prescribed form;
2[(b) the import duty, interest, fine and penalties payable in respect of such goods have been paid; and]
(c) an order for clearance of such goods for home consumption has been made by the proper officer.
3[ 4[Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:
Provided further that] the owner of any warehoused goods may, at any time before an order for clearance of goods for home consumption has been made in respect of such goods, relinquish his title to the goods upon payment of 5*** penalties that may be payable in respect of the goods and upon such relinquishment, he shall not be liable to pay duty thereon:]
6[7[Provided also that] the owner of any such warehoused goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force.]
1. Subs. by Act 28 of 2016, s. 132, for "The importer of any warehoused goods may clear them" (w.e.f. 14-5-2016).
2. Subs. by s. 132, ibid., for clause (b) (w.e.f. 14-5-2016).
3. Ins. by Act 32 of 2003, s. 114 (w.e.f. 14-5-2003).
4. Subs. by Act 13 of 2018, s. 83, for "Provided that" (w.e.f. 28-3-2018).
5. The words "rent, interest, other charges and" omitted by Act 28 of 2016, s. 132 (w.e.f. 14-5-2016).
6. Ins. by Act 21 of 2006, s. 59 (w.e.f. 18-4-2006).
7. Subs. by Act 13 of 2018, s. 83, for "Provided further that" (w.e.f. 28-3-2018).
2. Subs. by s. 132, ibid., for clause (b) (w.e.f. 14-5-2016).
3. Ins. by Act 32 of 2003, s. 114 (w.e.f. 14-5-2003).
4. Subs. by Act 13 of 2018, s. 83, for "Provided that" (w.e.f. 28-3-2018).
5. The words "rent, interest, other charges and" omitted by Act 28 of 2016, s. 132 (w.e.f. 14-5-2016).
6. Ins. by Act 21 of 2006, s. 59 (w.e.f. 18-4-2006).
7. Subs. by Act 13 of 2018, s. 83, for "Provided further that" (w.e.f. 28-3-2018).
Section 69 Clearance of warehoused goods for export.
69. Clearance of warehoused goods for 1[export].--(1) Any warehoused goods may be exported to a place outside India without payment of import duty if--
2[(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods;]
3[(b) the export duty, fine and penalties payable in respect of such goods have been paid; and]
(c) an order for clearance of such goods for 1[export] has been made by the proper officer.
4[Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis or risk evaluation through appropriate selection criteria.]
(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that such goods shall not be exported to any place outside India without payment of duty or may be allowed to be so exported subject to such restrictions and conditions as may be specified in the notification
2[(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods;]
3[(b) the export duty, fine and penalties payable in respect of such goods have been paid; and]
(c) an order for clearance of such goods for 1[export] has been made by the proper officer.
4[Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis or risk evaluation through appropriate selection criteria.]
(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that such goods shall not be exported to any place outside India without payment of duty or may be allowed to be so exported subject to such restrictions and conditions as may be specified in the notification
1. Subs. by Act 28 of 2016, s. 133, for "exportation" (w.e.f. 14-5-2016).
2. Subs. by Act 7 of 2017, s. 103, for clause (a) (w.e.f. 31-3-2017).
3. Subs. by Act 28 of 2016, s. 133, for clause (b) (w.e.f. 14-5-2016).
4. The proviso ins. by Act 13 of 2018, s. 84 (w.e.f. 28-3-2018).
2. Subs. by Act 7 of 2017, s. 103, for clause (a) (w.e.f. 31-3-2017).
3. Subs. by Act 28 of 2016, s. 133, for clause (b) (w.e.f. 14-5-2016).
4. The proviso ins. by Act 13 of 2018, s. 84 (w.e.f. 28-3-2018).
Section 70 Allowance in case of volatile goods.
(1) When any warehoused goods to which this section applies are at the time of delivery from a warehouse found to be deficient in quantity on account of natural loss, the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] may remit the duty on such deficiency.
(2) This section applies to such warehoused goods as the Central Government, having regard to the volatility of the goods and the manner of their storage, may, by notification in the Official Gazette, specify.
(2) This section applies to such warehoused goods as the Central Government, having regard to the volatility of the goods and the manner of their storage, may, by notification in the Official Gazette, specify.
1. Subs. by Act 27 of 1999, s. 100, for "Assistant Commissioner of Customs" (w.e.f. 11-5-1999)
Section 71 Goods not to be taken out of warehouse except as provided by this Act.
No warehoused goods shall be taken out of a warehouse except on clearance for home consumption or 1[export], or for removal to another warehouse, or as otherwise provided by this Act.
1. Subs. by Act 28 of 2016, s. 134, for "re-exportation" (w.e.f. 14-5-2016).
Section 72 Goods improperly removed from warehouse, etc.
(1) In any of the following cases, that is to say,--
(a) where any warehoused goods are removed from a warehouse in contravention of section 71;
(b) where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse;
1* * * * *
(d) where any goods in respect of which a bond has been executed under 2[section 59 3*** ] and which have not been cleared for home consumption or 4[export or] are not duly accounted for to the satisfaction of the proper officer,
the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with 5[interest, fine and penalties] payable in respect of such goods
(2) If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may 6[deem fit].
(a) where any warehoused goods are removed from a warehouse in contravention of section 71;
(b) where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse;
1* * * * *
(d) where any goods in respect of which a bond has been executed under 2[section 59 3*** ] and which have not been cleared for home consumption or 4[export or] are not duly accounted for to the satisfaction of the proper officer,
the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with 5[interest, fine and penalties] payable in respect of such goods
(2) If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may 6[deem fit].
1. Clause (c) omitted by s. 135, ibid. (w.e.f. 14-5-2016).
2. Subs. by Act 55 of 1991, s. 9, for "section 59" (w.e.f. 23-12-1991).
3. The words, figures and letter "or section 59A" omitted by Act 32 of 1994, s. 60 (w.e.f. 13-5-1994).
4. Subs. by Act 28 of 2016, s. 135, for "exportation" (w.e.f. 14-5-2016).
5. Subs. by s. 135, ibid., for "all penalties, rent, interest and other charges" (w.e.f. 14-5-2016).
6. Subs. by s. 135, ibid., for "select" (w.e.f. 14-5-2016).
2. Subs. by Act 55 of 1991, s. 9, for "section 59" (w.e.f. 23-12-1991).
3. The words, figures and letter "or section 59A" omitted by Act 32 of 1994, s. 60 (w.e.f. 13-5-1994).
4. Subs. by Act 28 of 2016, s. 135, for "exportation" (w.e.f. 14-5-2016).
5. Subs. by s. 135, ibid., for "all penalties, rent, interest and other charges" (w.e.f. 14-5-2016).
6. Subs. by s. 135, ibid., for "select" (w.e.f. 14-5-2016).
Section 73 Cancellation and return of warehousing bond.
When the whole of the goods covered by any bond executed under 1[section 59 2***] have been cleared for home consumption or exported or 3[transferred or] are otherwise duly accounted for, and when all amounts due on account of such goods have been paid, the proper officer shall cancel the bond as discharged in full, and shall on demand deliver it, so cancelled, to the person who has executed or is entitled to receive it.
1. Subs. by Act 55 of 1991, s. 9, for "section 59" (w.e.f. 23-12-1991).
2. The words, figures and letter "or section 59A" omitted by Act 32 of 1994, s. 60 (w.e.f. 13-5-1994).
3. Ins. by s. 136, ibid. (w.e.f. 14-5-2016).
2. The words, figures and letter "or section 59A" omitted by Act 32 of 1994, s. 60 (w.e.f. 13-5-1994).
3. Ins. by s. 136, ibid. (w.e.f. 14-5-2016).
Section 73A Custody and removal of warehoused goods.
1[73A. Custody and removal of warehoused goods.--(1) All warehoused goods shall remain in the custody of the person who has been granted a licence under section 57 or section 58 or section 58A until they are cleared for home consumption or are transferred to another warehouse or are exported or removed as otherwise provided under this Act.
(2) The responsibilities of the person referred to in sub-section (1) who has custody of the warehoused goods shall be such as may be prescribed.
(3) Where any warehoused goods are removed in contravention of section 71, the licensee shall be liable to pay duty, interest, fine and penalties without prejudice to any other action that may be taken against him under this Act or any other law for the time being in force.]
(2) The responsibilities of the person referred to in sub-section (1) who has custody of the warehoused goods shall be such as may be prescribed.
(3) Where any warehoused goods are removed in contravention of section 71, the licensee shall be liable to pay duty, interest, fine and penalties without prejudice to any other action that may be taken against him under this Act or any other law for the time being in force.]
1. Ins. by s. 137, ibid. (w.e.f. 14-5-2016).
Section 74 Drawback allowable on re-export of duty-paid goods.
(1) When any goods capable of being easily identified which have been imported into India and upon which 1[any duty has been paid on importation,--
(i) are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; or
(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, makes a declaration of its contents to the proper officer under section 77 (which declaration shall be deemed to be an entry for export for the purposes of this section) and such officer makes an order permitting clearance of the goods for exportation; or
(iii) are entered for export by post under 2[clause (a) of section 84] and the proper officer makes an order permitting clearance of the goods for exportation,
ninety-eight per cent. of such duty shall, except as otherwise hereinafter provided, be re-paid as drawback, if--]
(a) the goods are identified to the satisfaction of the 3[Assistant Commissioner of Customs or Deputy Commissioner of Customs] as the goods which were imported; and
(b) the goods are entered for export within two years from the date of payment of duty on the importation thereof:
Provided that in any particular case the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period as it may deem fit.
(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods which have been used after the importation thereof shall be such as the Central Government, having regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the Official Gazette, fix.
4[(3) The Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may--
(a) provide for the manner in which the identity of goods imported in different consignments which are ordinarily stored together in bulk, may be established;
(b) specify the goods which shall be deemed to be not capable of being easily identified; and
(c) provide for the manner and the time within which a claim for payment of drawback is to be filed.]
(4) For the purposes of this section--
(a) goods shall be deemed to have been entered for export on the date with reference to which the rate of duty is calculated under section 16;
(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of the provisional duty shall be deemed to be the date of payment of duty.
(i) are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; or
(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, makes a declaration of its contents to the proper officer under section 77 (which declaration shall be deemed to be an entry for export for the purposes of this section) and such officer makes an order permitting clearance of the goods for exportation; or
(iii) are entered for export by post under 2[clause (a) of section 84] and the proper officer makes an order permitting clearance of the goods for exportation,
ninety-eight per cent. of such duty shall, except as otherwise hereinafter provided, be re-paid as drawback, if--]
(a) the goods are identified to the satisfaction of the 3[Assistant Commissioner of Customs or Deputy Commissioner of Customs] as the goods which were imported; and
(b) the goods are entered for export within two years from the date of payment of duty on the importation thereof:
Provided that in any particular case the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period as it may deem fit.
(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods which have been used after the importation thereof shall be such as the Central Government, having regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the Official Gazette, fix.
4[(3) The Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may--
(a) provide for the manner in which the identity of goods imported in different consignments which are ordinarily stored together in bulk, may be established;
(b) specify the goods which shall be deemed to be not capable of being easily identified; and
(c) provide for the manner and the time within which a claim for payment of drawback is to be filed.]
(4) For the purposes of this section--
(a) goods shall be deemed to have been entered for export on the date with reference to which the rate of duty is calculated under section 16;
(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of the provisional duty shall be deemed to be the date of payment of duty.
1. Subs. by Act 80 of 1985, s. 6, for certain words (w.e.f. 27-12-1985).
2. Subs. by Act 13 of 2018, s. 85, for "section 82" (w.e.f. 28-3-2018).
3. Subs. by Act 27 of 1999, s. 100, for "Assistant Commissioner of Customs" (w.e.f. 11-5-1999).
4. Subs. by Act 22 of 1995, s. 60, for sub-section (3) (w.e.f. 26-5-1995).
2. Subs. by Act 13 of 2018, s. 85, for "section 82" (w.e.f. 28-3-2018).
3. Subs. by Act 27 of 1999, s. 100, for "Assistant Commissioner of Customs" (w.e.f. 11-5-1999).
4. Subs. by Act 22 of 1995, s. 60, for sub-section (3) (w.e.f. 26-5-1995).
Section 75 Drawback on imported materials used in the manufacture of goods which are exported.
(1) Where it appears to the Central Government that in respect of goods of any class or description 1[manufactured, processed or on which any operation has been carried out in India] 2[, being goods which have been entered for export and in respect of which an order permitting the clearance and loading thereof for exportation has been made under section 51 by the proper officer], 3[or being goods entered for export by post under 4[clause (a) of section 84] and in respect of which an order permitting clearance for exportation has been made by the proper officer], a drawback should be allowed of duties of customs chargeable under this Act on any imported materials of a class or description used in the 5[manufacture or processing of such goods or carrying out any operation on such goods], the Central Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect of such goods in accordance with, and subject to, the rules made under sub-section (2):
6[Provided that no drawback shall be allowed under this sub-section in respect of any of the aforesaid goods which the Central Government may, by rules made under sub-section (2), specify, if the export value of such goods or class of goods is less than the value of the imported materials used in the 5[manufacture or processing of such goods or carrying out any operation on such goods] or class of goods, or is not more than such percentage of the value of the imported materials used in the 5[manufacture or processing of such goods or carrying out any operation on such goods] or class of goods as the Central Government may, by notification in the Official Gazette, specify in this behalf:
Provided further that where any drawback has been allowed on any goods under this sub-section and the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within the time allowed under the 7[Foreign Exchange Management Act, 1999 (42 of 1999)], such drawback shall 8[except under such circumstances or such conditions as the Central Government may, by rule, specify,] be deemed never to have been allowed and the Central Government may, by rules made under sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback.
9[(1A) Where it appears to the Central Government that the quantity of a particular material imported into India is more than the total quantity of like material that has been used in the goods 10[manufactured, processed or on which any operation has been carried out in India] and exported outside India, then, the Central Government may, by notification in the Official Gazette, declare that so much of the material as is contained in the goods exported shall, for the purpose of sub-section (1), be deemed to be imported material.]
(2) The Central Government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide--
11[(a) for the payment of drawback equal to the amount of duty actually paid on the imported materials used in the manufacture or processing of the goods or carrying out any operation on the goods or as is specified in the rules as the average amount of duty paid on the materials of that class or description used in the manufacture or processing of export goods or carrying out any operation on export goods of that class or description either by manufacturers generally or by persons processing or carrying on any operation generally or by any particular manufacturer or particular person carrying on any process or other operation, and interest if any payable thereon;]
6[(aa) for specifying the goods in respect of which no drawback shall be allowed;
(ab) for specifying the procedure for recovery or adjustment of the amount of any drawback which had been allowed under sub-section (1) 12[or interest chargeable thereon];]
(b) for the production of such certificates, documents and other evidence in support of each claim of drawback as may be necessary;
(c) for requiring the 13[manufacturer or the person carrying out any process or other operation] to give access to every part of his manufactory to any officer of customs specially authorised in this behalf by the 14[Assistant Commissioner of Customs or Deputy Commissioner of Customs] to enable such authorised officer to inspect the processes of 15[manufacture, process or any other operation carried out] and to verify by actual check or otherwise the statements made in support of the claim for drawback.
16[(d) for the manner and the time within which the claim for payment of drawback may be filed;]
16[(3) The power to make rules conferred by sub-section (2) shall include the power to give drawback with retrospective effect from a date not earlier than the date of changes in the rates of duty on inputs used in the export goods.]
6[Provided that no drawback shall be allowed under this sub-section in respect of any of the aforesaid goods which the Central Government may, by rules made under sub-section (2), specify, if the export value of such goods or class of goods is less than the value of the imported materials used in the 5[manufacture or processing of such goods or carrying out any operation on such goods] or class of goods, or is not more than such percentage of the value of the imported materials used in the 5[manufacture or processing of such goods or carrying out any operation on such goods] or class of goods as the Central Government may, by notification in the Official Gazette, specify in this behalf:
Provided further that where any drawback has been allowed on any goods under this sub-section and the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within the time allowed under the 7[Foreign Exchange Management Act, 1999 (42 of 1999)], such drawback shall 8[except under such circumstances or such conditions as the Central Government may, by rule, specify,] be deemed never to have been allowed and the Central Government may, by rules made under sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback.
9[(1A) Where it appears to the Central Government that the quantity of a particular material imported into India is more than the total quantity of like material that has been used in the goods 10[manufactured, processed or on which any operation has been carried out in India] and exported outside India, then, the Central Government may, by notification in the Official Gazette, declare that so much of the material as is contained in the goods exported shall, for the purpose of sub-section (1), be deemed to be imported material.]
(2) The Central Government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide--
11[(a) for the payment of drawback equal to the amount of duty actually paid on the imported materials used in the manufacture or processing of the goods or carrying out any operation on the goods or as is specified in the rules as the average amount of duty paid on the materials of that class or description used in the manufacture or processing of export goods or carrying out any operation on export goods of that class or description either by manufacturers generally or by persons processing or carrying on any operation generally or by any particular manufacturer or particular person carrying on any process or other operation, and interest if any payable thereon;]
6[(aa) for specifying the goods in respect of which no drawback shall be allowed;
(ab) for specifying the procedure for recovery or adjustment of the amount of any drawback which had been allowed under sub-section (1) 12[or interest chargeable thereon];]
(b) for the production of such certificates, documents and other evidence in support of each claim of drawback as may be necessary;
(c) for requiring the 13[manufacturer or the person carrying out any process or other operation] to give access to every part of his manufactory to any officer of customs specially authorised in this behalf by the 14[Assistant Commissioner of Customs or Deputy Commissioner of Customs] to enable such authorised officer to inspect the processes of 15[manufacture, process or any other operation carried out] and to verify by actual check or otherwise the statements made in support of the claim for drawback.
16[(d) for the manner and the time within which the claim for payment of drawback may be filed;]
16[(3) The power to make rules conferred by sub-section (2) shall include the power to give drawback with retrospective effect from a date not earlier than the date of changes in the rates of duty on inputs used in the export goods.]
1. Subs. by s. 61, ibid., for "manufactured in India" (w.e.f. 26-5-1995).
2. Subs. by Act 11 of 1983, s. 52, for "and exported to any place outside India," (w.e.f. 13-5-1983).
3. Ins. by Act 80 of 1985, s. 7 (w.e.f. 13-5-1983).
4. Subs. by Act 13 of 2018, s. 86, for "section 82" (w.e.f. 28-3-2018).
5. Subs. by Act 22 of 1995, s. 61, for "manufacture of such goods" (w.e.f. 26-5-1995).
6. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991).
75. Subs. by Act 20 of 2002, s. 125, for "Foreign Exchange Regulation Act, 1973 (46 of 1973)" (w.e.f. 11-5-2002).
8. Ins. by Act 8 of 2011, s. 46 (w.e.f. 8-4-2011).
9. Ins. by Act 25 of 1978, s. 10 (w.e.f. 1-7-1978).
10. Subs. by Act 22 of 1995, s. 61, for "manufactured in India" (w.e.f. 26-5-1995).
11. Subs. by s. 61, ibid., for clause (a) (w.e.f. 26-5-1995).
12. Ins. by Act 22 of 1995, s. 61 (w.e.f. 26-5-1995).
13. Subs. by Act 22 of 1995, s. 61, for "manufacturer" (w.e.f. 26-5-1995).
14. Subs. by Act 27 of 1999, s. 100, for "Assistant Commissioner of Customs" (w.e.f. 11-5-1999).
15. Subs. by Act 22 of 1995, s. 61, for "manufacture" (w.e.f. 26-5-1995).
16. Ins. by s. 61, ibid. (w.e.f. 26-5-1995).
2. Subs. by Act 11 of 1983, s. 52, for "and exported to any place outside India," (w.e.f. 13-5-1983).
3. Ins. by Act 80 of 1985, s. 7 (w.e.f. 13-5-1983).
4. Subs. by Act 13 of 2018, s. 86, for "section 82" (w.e.f. 28-3-2018).
5. Subs. by Act 22 of 1995, s. 61, for "manufacture of such goods" (w.e.f. 26-5-1995).
6. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991).
75. Subs. by Act 20 of 2002, s. 125, for "Foreign Exchange Regulation Act, 1973 (46 of 1973)" (w.e.f. 11-5-2002).
8. Ins. by Act 8 of 2011, s. 46 (w.e.f. 8-4-2011).
9. Ins. by Act 25 of 1978, s. 10 (w.e.f. 1-7-1978).
10. Subs. by Act 22 of 1995, s. 61, for "manufactured in India" (w.e.f. 26-5-1995).
11. Subs. by s. 61, ibid., for clause (a) (w.e.f. 26-5-1995).
12. Ins. by Act 22 of 1995, s. 61 (w.e.f. 26-5-1995).
13. Subs. by Act 22 of 1995, s. 61, for "manufacturer" (w.e.f. 26-5-1995).
14. Subs. by Act 27 of 1999, s. 100, for "Assistant Commissioner of Customs" (w.e.f. 11-5-1999).
15. Subs. by Act 22 of 1995, s. 61, for "manufacture" (w.e.f. 26-5-1995).
16. Ins. by s. 61, ibid. (w.e.f. 26-5-1995).
Section 75A Interest on drawback.
1[75A. Interest on drawback.--(1) Where any drawback payable to a claimant under section 74 or section 75 is not paid within a 2[period of 3[one month]] from the date of filing a claim for payment of such drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the rate fixed under section 27A from the date after the expiry of the said 2[period of 3[one month]] till the date of payment of such drawback:
4* * * * *
5[(2) Where any drawback has been paid to the claimant erroneously or it becomes otherwise recoverable under this Act or the rules made thereunder, the claimant shall, within a period of two months from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed under 6[section 28AA] and the amount of interest shall be calculated for the period beginning from the date of payment of such drawback to the claimant till the date of recovery of such drawback.]
4* * * * *
5[(2) Where any drawback has been paid to the claimant erroneously or it becomes otherwise recoverable under this Act or the rules made thereunder, the claimant shall, within a period of two months from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed under 6[section 28AA] and the amount of interest shall be calculated for the period beginning from the date of payment of such drawback to the claimant till the date of recovery of such drawback.]
1. Ins. by s. 62, ibid. (w.e.f. 26-5-1995).
2. Subs. by Act 8 of 1999, s. 2, for "period of three months" (w.e.f. 8-1-1999).
3. Subs. by Act 32 of 2003, s. 115, for "two months" (w.e.f. 14-5-2003).
4. The proviso omitted by s. 115, ibid. (w.e.f. 14-5-2003).
5. Subs. by Act 22 of 2007, s. 98, for sub-section (2) (w.e.f. 11-5-2007).
6. Subs. by Act 23 of 2012, s. 125, for "section 28AB" (w.e.f. 8-4-2011).
2. Subs. by Act 8 of 1999, s. 2, for "period of three months" (w.e.f. 8-1-1999).
3. Subs. by Act 32 of 2003, s. 115, for "two months" (w.e.f. 14-5-2003).
4. The proviso omitted by s. 115, ibid. (w.e.f. 14-5-2003).
5. Subs. by Act 22 of 2007, s. 98, for sub-section (2) (w.e.f. 11-5-2007).
6. Subs. by Act 23 of 2012, s. 125, for "section 28AB" (w.e.f. 8-4-2011).