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 allows exporters to claim a refund of duties and taxes paid on inputs used in manufacturing export products. This includes customs duties on raw materials, components, and packaging materials. The scheme is designed to enhance the competitiveness of Indian goods in the global market by offsetting domestic taxes and duties. For instance, if a manufacturer imports steel to produce machinery for export, the customs duty paid on the steel can be refunded under this scheme.