Drawback allowable on re-export of duty-paid goods
Section 74 of the Customs Act, 1962 deals with drawback allowable on re-export of duty-paid goods. When any goods capable of being easily identified which have been imported into India and upon which [any duty has been paid on importation,-- (i) are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; The Act came into force on 01 Feb 1963.
(1) When any goods capable of being easily identified which have been imported into India and upon which 1[any duty has been paid on importation,--
(i) are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; or
(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, makes a declaration of its contents to the proper officer under section 77 (which declaration shall be deemed to be an entry for export for the purposes of this section) and such officer makes an order permitting clearance of the goods for exportation; or
(iii) are entered for export by post under 2[clause (a) of section 84] and the proper officer makes an order permitting clearance of the goods for exportation,
ninety-eight per cent. of such duty shall, except as otherwise hereinafter provided, be re-paid as drawback, if--]
(a) the goods are identified to the satisfaction of the 3[Assistant Commissioner of Customs or Deputy Commissioner of Customs] as the goods which were imported; and
(b) the goods are entered for export within two years from the date of payment of duty on the importation thereof:
Provided that in any particular case the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period as it may deem fit.
(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods which have been used after the importation thereof shall be such as the Central Government, having regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the Official Gazette, fix.
4[(3) The Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may--
(a) provide for the manner in which the identity of goods imported in different consignments which are ordinarily stored together in bulk, may be established;
(b) specify the goods which shall be deemed to be not capable of being easily identified; and
(c) provide for the manner and the time within which a claim for payment of drawback is to be filed.]
(4) For the purposes of this section--
(a) goods shall be deemed to have been entered for export on the date with reference to which the rate of duty is calculated under section 16;
(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of the provisional duty shall be deemed to be the date of payment of duty.
Section 74, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam
Court's Decision & Legal Precedent
When an exporter files free shipping bills for export goods and subsequently seeks to claim duty drawback, while the exporter cannot invoke 'reasons beyond control' under Rule 12(1)(a) merely on the ground of lack of legal awareness, the Board's Circular No. 04/2004 dated 16.01.2004 empowers the Commissioner to examine and consider individual requests for drawback on merits and facts without requiring formal conversion of the bills, provided the claim pertains to All Industry Rates of drawback (not brand rates). Physical examination of goods is not a precondition for granting such drawback claims, as the Customs Act only requires that export goods be cleared after satisfying that they are not prohibited and any applicable duty is paid. For non-dutiable export goods, the absence of physical examination does not bar drawback claims.
On this section: Referenced in context of goods on which import duty has not been paid but are entered for exportation under claim for drawback.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
3 instruments name this provision in its title or its text without being made under it.
- Notification No.25/2019-Cus(NT), dated 25.3.2019Notification 2019
- Notification No.60/2017-Cus(NT), Dated 29.6.2017Notification 2017
- Duty free clearance of goods imported for display or use at fair, exhibition, etc. - submission of bond & bank guarantee. - Circular No.55/1998-Customs, dated 3.8.1998Circular 1998
Questions about Section 74
What have the courts held on Section 74 of the Customs Act?
Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam (27 Oct 2015) is the leading judgment on this section among those set out below: Referenced in context of goods on which import duty has not been paid but are entered for exportation under claim for drawback.
How do I find court cases under Section 74 of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 74, section 74 Customs Act 1962, section 74 of the Customs Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam (27 Oct 2015).
What should I read with Section 74 of the Customs Act, and has it changed?
Its own text turns on section 16 (Date for determination of rate of duty and tariff valuation of export goods), section 18 (Provisional assessment of duty), section 51 (Clearance of goods for exportation), section 77 (Declaration by owner of baggage), and on 1 further provision, so none of them can safely be read on its own. 6 other provisions in this corpus refer back to it. 3 instruments name it without being made under it, most recently Notification No.25/2019-Cus(NT), dated 25.3.2019 (2019), then Notification No.60/2017-Cus(NT), Dated 29.6.2017 (2017).
When did Section 74 of the Customs Act come into force?
Section 74 of the Customs Act, cited as Customs Act 1962 74, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.