Drawback prohibition for exports to certain neighbouring territories limits duty drawback, with specified exceptions under irrevocable LCs and authorized projects.
The Central Government directs that drawback of import duty shall not be allowed for goods exported to Bhutan, Nepal and by land to Myanmar, Tibet and Sinkiang as they are likely to be smuggled back; limited exceptions permit drawback where exports are against irrevocable letters of credit in freely convertible currency, for multilateral agency financed projects with payment in freely convertible currency, for specified capital goods to Nepal under global tender with bank certificate and passage through prescribed land customs stations, and for certain petroleum exports to Nepal under similar conditions.

Determination of origin requires consignment proof and meeting specified production thresholds for preferential tariff eligibility.
Determination of origin requires that goods be consigned from a declared preferential area and, for manufactured articles, that they be wholly manufactured there or, if partially manufactured, that the final manufacturing process occurred there and that the expenditure on material produced and labour performed in that country meet the prescribed portion of the factory or works cost. Material and labour from other preferential areas may be reckoned as local when goods are consigned from such an area. Imports by post require a country-of-origin declaration on arrival for preferential claims.