Duty Drawback in case non receipt of payment

[Jagdish Singh]

A party has exported the material to a customer in France on credit period and obtained the duty drawback. Now the customer has went into liquidation and not able to pay the money. Should the duty draw back is required to refunded to customer authority or is there any provision of relaxation

AI Summary

Refund Duty Drawbacks if Export Proceeds Unpaid: Rule 18 of Drawback Rules 2017; ECGC Insurance May Offer Relief. A party exported goods to a French customer on credit and received a duty drawback. The customer went into liquidation, raising concerns about whether the duty drawback must be refunded. Responses indicated that export benefits, including duty drawbacks, must be returned if export proceeds are not received. Rule 18 of the Customs and Central Excise Duties Drawback Rules, 2017, mandates recovery of drawbacks if sale proceeds are not realized within the timeframe allowed by the Foreign Exchange Management Act. Relief might be possible if ECGC insurance was obtained. Extensions for overdue payments can be sought from the Reserve Bank of India.