Chapter X - Drawback
Section 74
Section 74: Drawback on re-export of duty-paid goods
Section 74 can repay eligible customs duty when identifiable imported goods are re-exported. Identity proof, an export clearance order, the statutory export-entry period and the current drawback rules matter; used goods follow separately notified rates.
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Need advice on Section 74?
This article is for general information. Refer to the Customs Act, 1962 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) 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; 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 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 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.
(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.
Key takeaways
Same goods, not new export product
The claimant must satisfy Customs that the exported goods are the identifiable goods previously imported with duty paid.
Entry and clearance conditions
The goods must be entered for export within two years of import-duty payment unless the Board extends the period for sufficient cause, and the proper officer must permit export clearance.
Amount depends on facts
The Act states a general ninety-eight per cent repayment for qualifying unused goods, but used goods follow rates fixed by notification and the claim follows the rules.
Same goods, not new export product
The claimant must satisfy Customs that the exported goods are the identifiable goods previously imported with duty paid.
Entry and clearance conditions
The goods must be entered for export within two years of import-duty payment unless the Board extends the period for sufficient cause, and the proper officer must permit export clearance.
Amount depends on facts
The Act states a general ninety-eight per cent repayment for qualifying unused goods, but used goods follow rates fixed by notification and the claim follows the rules.
Practical checklist
Do
- Link import entry and duty-payment evidence to serial numbers or other identity proof.
- Confirm the export-entry date and obtain the Section 51 clearance order.
- Check whether the goods were used and apply the current Section 74 rules and notified used-goods rate before claiming.
Frequently asked questions
Does every re-export receive ninety-eight per cent drawback?
No. Identity, timing and clearance conditions apply, and used goods have separately notified rates.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026