Question

This scheme provides a refund of import duty on raw materials, components, and packing materials used in the export product, reducing the input cost of exports.

• A. Duty drawback
• B. Custom duty exemption
• C. Central excise rebate
• D. Income tax exemption

Hint:

Maintain detailed records of imported materials and exports to simplify the claim process under the Duty Drawback Scheme

Answer 1

The Correct Option is A

The Duty Drawback Scheme enables exporters to recover duties and taxes paid on inputs for exported manufactured goods. This covers customs duties on raw materials, components, and packaging. The program aims to improve the global competitiveness of Indian products by compensating for domestic taxes and duties. For example, a manufacturer importing steel to make machinery for export can get a refund of the customs duty paid on the steel through this scheme.