Eligibility of reimbursement of custom duty - 100% EOU

[nanda kumar]

Whether 100 % EOU is eligible to be reimbursed the customs duty element included in the input raw material cost but not directly paid by the said 100 % EOU.

AI Summary

Reimbursement of customs duty: export oriented unit's eligibility depends on chosen scheme and direct import; duty drawback may apply.
Eligibility for customs duty reimbursement for an export oriented unit depends on the scheme chosen and procurement method. A unit may be entitled to benefit for duty elements it did not directly pay, but reimbursement is generally limited to inputs imported directly to the unit; where a third party paid duty reimbursement may be unavailable, though duty drawback can be claimed based on a disclaimer certificate from the domestic supplier.