How to Check Duty Drawback Status

The duty drawback scheme is Provided by the government to encourage exports by permitting exporters to reclaim certain customs duties. it is crucial to keep themselves updated on the duty drawback status to know if there are any issues in the reimbursement process. In this blog, we aim to provide an easy-to-follow, step-by-step guide to check on duty drawback status and answers to common issues that can occur.

What is duty drawback status?

'Duty drawback status' means the process of an exporter's claim for a duty refund on imported inputs used in manufacturing an export good. You can also know whether the claim is pending, processed, or rejected. This status is monitored to help exporters receive their eligible refunds promptly.

A duty drawback scheme governed by (Sec 74 and Sec 75 of the Customs Act, 1962) will help improve export competitiveness. It reimburses when a company imports materials to be later exported as finished goods and pays customs duties on the imported materials. This scheme necessitates compliance with detailed procedural and documentary requirements, so regular duty drawback status tracking is necessary. Further, read to see how to check duty drawback status.

Steps for checking the duty drawback status.

Whichever type of duty drawback you're claiming, the steps you follow to check the status of your duty drawback claim will depend on the kind of duty drawback. There are three main types: They are All Industry Rate (AIR), Brand Rate of Duty Drawback, and Section 74 Duty Drawback. Now, we will look at some of the steps we should take for each type.

Check Status of All Industry Rate (AIR) Duty Drawback

The standard duty drawback rate applicable to most exporters is the rate under which you have claimed the All Industry Rate (AIR) duty drawback. Here's how you can check the status:

Steps to Check AIR Duty Drawback Status:

Log into the Customs or DGFT Portal: The Central Board of Indirect Taxes & Customs (CBIC) official website or the Directorate General of Foreign Trade (DGFT) portal.
If you need to, log in with your credentials.

Navigate to the Duty Drawback Section: Then search for "Duty Drawback" or "Export Benefits". To do this is generally available under the "Export" tab or "Drawback" menu.

Enter Required Details: Enter the necessary information, such as:
Shipping Bill Number
The IEC Code (Importer Exporter Code)
Date of Export

Check the Status: The details are submitted in order to view the status of your AIR Duty Drawback claim. The system will also show if your claim has been processed and approved or if the amount is pending.

Follow-up (if needed): In case the status shows any delay or discrepancy, you can reach the concerned customs office or customer support portal to sort it out.

To Check the Status of the Brand Rate of Duty Drawback

If you've applied for a Brand Rate of Duty Drawback, which allows for a specific rate that may differ from the AIR, follow these steps:

Steps to Check Brand Rate Duty Drawback Status:

Visit the Customs or DGFT Website:
A visit may be done from the official customs or DGFT website when your Brand Rate Duty Drawback Claim is submitted.
Enter your user ID and password.

Select Brand Rate Option
You will find the option especially for Brand Rate Duty Drawback in the "Duty Drawback" or "Export Incentives" section.

Enter Exporter Details
Input required information such as:
IEC Code
Brand Name or HS Code
Shipping Bill Number

Check the Status
Following the submission of the details, you can check out how your Brand Rate Duty Drawback stands, including if it is approved, on review, or if more verification is needed.

Contact Authorities (if needed).

In case of delays or the system requesting more documents, please get in touch with either Customs or the DGFT office to understand the proceedings or seek your help.

Section 74 Duty Drawback Check status

If you are claiming the Section 74 Duty Drawback (applicable for re-imported goods), follow these steps:

Steps to Check Section 74 Duty Drawback Status:

Go to the Customs or Port Authority Website
Here, you can find the Customs or Port Authority Website, too.
Section 74 claims are processed on the customs website (CBIC).
If you haven't logged in, log in to your account.

Go to the Section 74 Drawback Section.
Go to Section 74 Duty Drawback (you might find this under "Re-importation" or "Refunds") and find more information.

Provide Relevant Information
Enter details about your re-import, such as:
Export Invoice Number
Bill of Entry Number to re-import
Customs Duty Paid
HS Code of Goods
Date of Re-importation

Check the Status of the Claim

Enter your details and submit to check on the status of your Section 74 claim. Depending on your claim, the system will provide information on whether it has been processed, approved, or is still pending.

Find and fix (amend) any discrepancies (as may exist).
If the status is different or if the claim is pending (if documents are missing), check with the customs office or your port authority for help.

Key Takeaways

Check with AIR Duty Drawback through the CBIC/ DGFT portal with your export details.
For Brand Rate Duty Drawback, ensure you're claiming the special rate and track it through the customs or DGFT system using your exporter details.

You can check the Section 74 Duty Drawback re-import claim status by giving the details of export and re-import on the relevant customs portal for Section 74 Duty Drawback.
Make sure that when checking the status of any duty drawback claim, you have all the proper documentation (shipping bills, invoices, HS Codes, etc.). 

If you do run into any problems or delays with this, do not hesitate to contact the customs office or the support team regarding this to clear up or aid.

Common Issues When Checking Your Status Duty Drawback

Exporters most often face issues when attempting to check duty drawback status. Here are some common problems and their potential solutions:

Incorrect IEC or Shipping Bill Details

The system may not show the status of the IEC or the shipping bill number is wrongly entered. Check all of the details and double-check to ensure accuracy.

Delay in Processing

Usually, there are processing delays because there are too many claims or there is insufficient documentation. The drawback is that it may stay pending longer than you expect.

Rejections caused by documentation mistakes.

Export invoices, packing lists, and proof of payment of customs duties, where mandatory, must be correct and present, or claims may be rejected.

Technical glitches on the portal.

Sometimes, when you are an exporter with a problem or an old browser or server won't let you access the portal, First, ensure your system is current and try to access the portal during off-peak times.

Resolve Common Issues with Duty Drawback Status

If you encounter problems while tracking or receiving your drawback claim, follow these steps to resolve them:

Rectify Documentation Errors

Send your submission back for review against what customs requires and that all required documents are included. Commonly required documents include:

Shipping bill
Invoice
Proof of payment of duties
Bank realization certificate

Respond to Queries Promptly

If you have a notice from the customs department, solve it immediately. Typically, the queries are differences of documents or 'what's missing.'.

contact with the Customs Department

If the claim is unresolved for a long time, go to the customs department directly. If you face such a situation, you can escalate the issue by visiting the nearest customs office or by contacting the helpline on the portal.

Leverage ECGC Support

However, in the case of a buyer default, which prevents the realization of export proceeds, ECGC provides compensation. Exporters need a certificate from the relevant foreign mission to support such a case and resolve the issue of unrecovered proceeds.

Reclaim Recovered Amounts

After the realization of export proceeds, you can reapply for a refund if a previously recovered duty drawback amount no longer becomes valid. This should be done within three months of the realization date.

How Is it Worth Tracking Duty Drawback Status?

Exporters have to monitor the duty drawback status not only as a procedural requirement but also directly impacting cash flow and profitability. By impacting the resources of small and medium-sized enterprises, delays in receiving the refunds are a problem. Besides, you will always be able to avoid missing deadlines or leaving out claims errors.

The drawback inquiry feature in the Indian Customs EDI portal offers transparency and convenience to the exporters and provides them with real-time updates. A month-wise drawback scroll also makes reconciling accounts much easier.

Conclusion

The duty drawback process needs to be navigated to mark up export benefits. Regularly checking in on your duty drawback status and quickly responding to any problems will help keep your refund process seamless. To efficiently check duty drawback status, follow the steps above, and if you need help, please feel free to seek help. However, staying proactive in managing your drawback claims means you'll be that much stronger financially and preserved to grapple with the expansions of your export operations.

Frequently Asked Questions

How do you track duty drawback status?

To track your duty drawback status, log into the Indian Customs EDI portal, navigate to the "Drawback Enquiry" section, and enter your IEC, shipping bill number, and export date. You'll be able to see the status of your claim on the portal.

What are the disadvantages of duty drawback?

Some disadvantages of duty drawback include:

Documenting takes a long time and is quite complex.
Delays in claim processing
So, there is a risk of penalties if they make errors or make fraudulent claims.
Applies only to goods not subject to customs duties.

Who is eligible for drawback duty?

Drawback duty is payable to duty-paying importers of inputs used in manufacturing export goods, subject to adherence to all procedural and documentation requirements.

What is the time limit for claiming duty drawback?

As per the Customs Act, 1962, with effect from 14th November 2006, all customs duties, fees, and other taxes paid on imports are allowed to be drawn back under duty drawback protection on one condition, that is, the claims for duty drawback are to be filed within one year from the date of export. In some cases, extensions may be given.

How do I get a refund for the duty drawback?

Your duty drawback claim can be filed, and documents can be uploaded on the Indian Customs portal for a refund. Confirm that every detail is correct and reply immediately to anything the customs department indicates about any queries or problems.