CBIC clarified that All Industry Rate (AIR) of duty drawback...

CBIC clarified that All Industry Rate (AIR) of duty drawback cannot be denied or reduced for export goods manufactured using partially non-duty paid or concessionally duty paid inputs. The rates are determined based on weighted average duties paid on inputs across a representative cross-section of exporters. Field formations are not authorized to investigate whether exempted inputs were used in manufacturing export goods. This reaffirms Board Circular No. 19/2005-Customs position that AIR calculation considers average duty patterns, making individual input duty status irrelevant for drawback eligibility. The instruction ensures uniform application of drawback rules across customs jurisdictions.