DRAWBACK AND SCHEME EXPORT

[Asked by Guest]

what is drawback export and scheme export?????

[PAWAN KUMAR]

As per my view, the drawback export is the export of your product on which you claim any duty drawback which government allow on some products at the rate fixed by them. However in scheme export, you have to mention the scheme name while filing shipping bills for export in customs.

[YAGAY and SUN]

Dear Ranjit,

Duty Drawback is of three kinds, namely:-

1. Export under Section 74 of the Customs Act, 1962 (Export of inputs etc. as such)
2. Export under Section 75 of the Customs Act, 1962 (Export of finished goods in which imported inputs/components/raw material is used on which import customs duty was paid).
3. Export under All Industry Rate (In this drawback of duty rates is fixed by the Government).

Scheme Exports are as under:-

1. Export under Advance License scheme
2. Export under EPCG Scheme
3. Focus Market Scheme
4. Served from India Scheme (Service export)
5. DFIA scheme
6. Focus Product Scheme.

To avail the benefit of above schemes, there is a requirement to mention about these scheme on the Shipping Bills prior to exporting out of India.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Yes, and one more export scheme namely Market Linked Focus Product Scheme (MLFPS).

AI Summary

Duty drawback refunds customs duties on exports, while scheme exports require declaring the incentive scheme on shipping bills.
Duty drawback provides refunds of customs duties on exports either for inputs exported as such, finished goods using imported inputs, or under government notified all industry rates. Scheme export involves undertaking exports under designated incentive programs (such as Advance License, EPCG, Focus Market/Product, DFIA, and Served From India), and mandates declaring the applicable scheme on the shipping bill at customs to secure scheme benefits.