Understanding Duty Drawback: Rebates on Customs & Excise Duties for Exported Goods, AIR & Brand Rate Explained

Duty drawback on exported manufactured goods involves rebates on Customs and Central Excise duties for imported or excisable materials used in manufacturing. Since October 2017, the drawback is limited to Customs duties on inputs and remnant Central Excise Duty on specified petroleum products. There are two types of Duty Drawback: All Industry Rate (AIR) and Brand Rate. AIR is based on average duty incidence and is notified annually, while Brand Rate is for products without AIR or with less than 80% duty neutralization. Exporters must apply for Brand Rate within specified timelines, and provisional drawbacks are available pending final determination.