Making the new regime clearer

The government has introduced new Duty Drawback Rules and notified new drawback All Industry Rates (AIR). It has amended the customs valuation laws and postponed the date for compulsory electronic sealing of containers. It also said the problems of exporters are not as grievious as made out.

The new rules give drawback of only the customs and excise duties for export, as well as supplies to Special Economic Zones (SEZs). No drawback of integrated tax (IGST) or compensation cess will be available. The new AIR schedule rebates only the incidence of customs duty on inputs used and excise duty on