TaxTMI 
TaxTMI 
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
Duty Drawback in case non receipt of payment
09 May 2020 
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Duty drawback recovery required when export proceeds are not realised, with notice, proportionate recovery and limited reinstatement.
Duty drawback paid must be recovered where export sale proceeds are not realised within the foreign exchange period. Customs issues notice for evidence of realisation and, failing production, recovers drawback; partial realisation leads to proportionate recovery. If proceeds are realised later within the permitted period and evidence is produced within a limited window, the recovered drawback will be repaid, with a possible extension by the principal customs authority on payment of a prescribed application fee. (AI Summary)
Duty drawback paid must be recovered where export sale proceeds are not realised within the foreign exchange period. Customs issues notice for evidence of realisation and, failing production, recovers drawback; partial realisation leads to proportionate recovery. If proceeds are realised later within the permitted period and evidence is produced within a limited window, the recovered drawback will be repaid, with a possible extension by the principal customs authority on payment of a prescribed application fee. (AI Summary)