Saturday, December 29, 2018

CHA is supposed to safeguard the interest of both the importers and the customs


Revocation of CHA License - contravention of regulations 10, 11 (a) (b) (d) (e) & 11 (m) of CBLR, 2013
Held that:-

The CHA is supposed to safeguard the interest of both the importers and the customs. A lot of trust is pose in CHA by the importers/ exporters as well as by the Govt. Agencies. - any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in the regulation.

E-Sanchit on exports documentation-----on voluntary basis

MEIS rate for Onions, Fresh Chilled

Friday, December 28, 2018


Compulsory compliance Requirement (CCR)

 In addition to requirements of License and other restrictions as per prevailing Foreign Trade Policy, various requirements under Allied Acts also to be fulfilled before customs clearance which is called COMPULSORY COMPLIANCE REQUIREMENT ( CCR ). RMS prints the list of crucial Documents,Certificates,Permits & licenses required to be furnished under Allied Acts and Rules. RMS has a consolidated CTH wise in built database.

Therefore importers and Customs Brokers must aware of Allied Acts and keep ready necessary documents to be submitted along with the B/E for smooth clearance without the need for issue of a “Consultative” Letter of Post Clearance Audit pointing out the deficiencies. Also it saves time and money. For the sake of non submission of CCR documents, if the cargo is detained, then importer has to suffer unwanted demurrage, detention etc costs.

Let us see few Allied Acts closely related to EXIM trade ;

1 Drugs & Cosmetics Act 1940 & Rules
2.Copy Right Act 1957 & Rules
3.Environment Protection Act 1986 & Rules
4.Plant Quarantine ( Regulation of import into India ) Order, 2003
5.Food Safety and Standards Act 2006
6.Legal Metrology Act 2009 and Rules
7. E waste Management Rules 2016
8.The Bureau of Indian Standards Act 1986 and Rules
9.Patents Act 1970 and Rules
10.Trade Marks Act, 1999
11.Arms Act, 1959
12.Atomic Energy Act, 1962
13.Wild Life Protection Act, 1972
14.Motor Vehicles Act, 1988
15.Insecticide Act,1968



Dictionary meaning of Seizure is " the action of capturing 
someone or something using force "
1.Seizure is governed by Sec 110 of Customs Act 1962

2.On a reasonable belief that the goods may be
liable for confiscation, the seizure is effected
by a proper officer of Customs.

3.If no Show cause Notice under sec 124 of CA 1962 is issued within six months or an extended period of another six months (overall 12 months) the seized goods shall be returned to the person from whom seized.


Dictionary meaning of Confiscation is " the action of taking or seizing someone's property with authority"

1.Confiscation is governed by Sec 111 of CA 1962
on imports and section 113 of CA 1962 on Exports

2.On confiscation under Sec 111  (imports) or Sec 113 (exports) the property vests with customs

3.On confiscated goods, Adjudicating Authority
(other than absolutely confiscated by adjudication)
may allow same goods to be redeemed by the 
importer / exporters on payment of redemption
fine under sec 125(1) of CA 62 with penalty under
Sec 112 of CA 62 ( in respect of import ) of under 
Sec 114 of CA 62 (in respect of Exports)
This is popularly known as " Fine in lieu of confiscation"


1.Wherever revenue is to be safeguarded a
BG is obtained from the importer by Customs.
2.This is a security
3.It is a more safer manner of protecting 
revenue since the Banks stand guarantee
for the amount of BG


1.This is a guarantee given by a Big Corporate group of 
companies on behalf of its subsidiary company.
2.This is a surety
3.Safety of this gurantee to Government Revenue
is, parent company ( reasonably large company ) gurantees
the financial soundness of its group of companies.
 Hence more flexible to subsidiary companies and not required
to give individual BG's

AEO application digitization -development of web-based application for AEO-T1 manual applications will be accepted upto 31.03.2019 only

Tel: 080-22867990/22863714 Fax: 080-22862419/22868795 Email:
C. No. V111/48/ 181/2016 CC CUS BZ
Date: 13.12.2018
Subject: AEO Programme digitization -Ease of doing business-development of web-based application for AEO-T1 -Reg.
Attention of all Customs Brokers, Exporters, Importers, Members of the Trade and other stake holders is invited to Board's Circular No. 51/2018 -Customs dated 07.12.2018 regarding AEO Programme digitization -Ease of doing business-Development of web-based application for AEO-T1.
2. Attention is invited to Circular Nos. 26/2018-Customs dated 10.8.2018 wherein it was stated that "The online processing of AEO T1 application will commence as soon as the necessary digital infrastructure is in place." Keeping in line with the target of digitization, an online AEO website has been developed under the aegis of DIC for online filing and processing of AEO T1 applications. The AEO website (domain was launched by the Chairman, CBIC on 30.11.2018 and subsequently the access to the website was made available to both the applicant, for filing of AEO T1 application(annexure), and Customs officials, for processing and delivery of digitized AEO Certificate online of newly filed applications. The trade is requested to make use of the online platform with immediate effect. Further, for ensuring seamless transition to the online web-application, it has been decided to concurrently continue with the manual filing and processing of AEO T-1 applications up to 31.03.2019. The trade and field formations respectively would have the liberty to file the applications manually up to prescribed transition time limit, i.e up to 31.3.2019 so as to obviate any delay in time-bound processing of the applications. Hence it is requested the trade should make earnest effort to use this online mode as much as possible.
3. Further, kind reference is also drawn to para 3(viii) of the Circular No 3/2018-Customs dated 17.01.2018 regarding amendment in the AEO Programme whereby the validity of AEO Certificate of T1 & T2 was extended to 3 years uniformly. Accordingly, in order to synchronise validity with review and OSPCA of AEO-T1 certified entities, their intervals are also being extended to 3 years form existing 2 years, by modifying the para 1.5(viii) and Para 5.4.1 of Master Circular No 33/2016 Customs dated 22.7.2016.
However, DIC may initiate review of any entity at any point of time if there are reasons to believe, to the satisfaction of the AEO Programme Manager, that the adherence to the conditions and standards of AEO status is comprised or affected.
4. Difficulties, if any, faced in the implementation of this Public Notice may be brought to the notice of this office.

Prohibition on import of milk and milk products from China

Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhavan, New Delhi
Notification No 46/2015-2020
dated 24th December, 2018
Subject: - Prohibition on import of milk and milk products from China.
S.O. (E):  - In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby, makes the following amendment in ITC (HS) 2017, Schedule 1 (Import Policy):
2. The prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionary/ food preparations with milk or milk solids as an ingredient) from China is effective till 23/12/2018 as per the Notification No. 14/2015-2020 dated 22/06/2018.
3. The matter has been reviewed and the prohibition on import of milk and milk products, as mentioned in paragraph 2 above, from China is extended for a further period of four months, i.e., till 23.04.2019 or until further orders, whichever is earlier.
4. Effect of this Notification.
Prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionary/ food preparations with milk or milk solids as an ingredient) from China is extended for a further period of four months, i.e., till 23.04.2019 or until further orders, whichever is earlier.
This issues with the approval of Minister of Commerce & Industry.
(Alok Vardhan Chaturvedi)
Director General of Foreign Trade &
Ex-offico Additional Secretary, Government of India
[Issued from F.No.01/93/180/898/AM-99/PC-2 (A)/e 1252]


1. With the introduction of  Risk Management 
system (RMS) Post clearance audit has been
introduced for audit of RMS facilitated Bill of Entry
2.It is a post audit after payment of duty and 
clearance of the goods
3.In case any possible short levies are noticed, the officers will
 issue a Consultative Letter setting out the grounds 
for their view to the Importers/CB's.
4.PCA is a prevailing audit system


1.Under the EDI system, after assessment of the 
B/E by the respective Group, the B.E was subject
to concurrent audit
2.It was a pre audit done concurrently after 
assessment and before payment of duty
3.Audit took place before payment duty and 
hence Revenue to the extent of audit was  
safeguard, before allowing clearance
4.CCA is already been abolished vide circular 43/2005

CUSTOMS CIRCULAR  NO.  43/2005 dt.24.11.2005 introducing PCA and abolishing CCA given below ;

CIRCULAR  NO.  43/2005-Cus
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
November  24th, 2005
Subject: Introduction of Risk Management System (RMS) in Imports- regarding-
Attention is invited to the Board's circular letter F.No.450/30/2003-Cus-IV dated 4th April, 2003 on Self Assessment Scheme for Accelerated Clearance of Import/Export Cargo and Board's Circular No. 42/2005-Cus dated 24.11.05 on Accredited Clients Program. An Inter Ministerial  Group (IMG) headed by Secretary (Revenue) consisting of  representatives from Ministry of Shipping, Ministry of Commerce, Planning Commission besides CBEC, recommended to Introduce Risk Management System (RMS) as a measure of trade facilitation and for  selective screening of only high risk cargo for customs examination. Such systems should provide for a special customs clearance procedure for authorized persons (Accredited Clients) having good track record and who meet specified criteria identified by the Customs.
2. The Board has decided to introduce the 'Risk Management System' (RMS) in major Customs locations where the Indian Customs EDI System (ICES) is operational. The implementation of the RMS is one of the most significant steps in the ongoing Business Process Re-engineering initiatives of the Customs and Central Excise Department.
3. The ever increasing volumes and complexity of international trade and the deteriorating global security scenario present formidable challenges to Customs. The exponential growth in trade volumes means that the traditional approach of scrutinizing every document and examining every consignment will simply not work, as it would neither be desirable nor possible to constantly increase the resources with the increasing workload. Also, there is a need to reduce the dwell-time of cargo at the ports and airports and to reduce the transaction costs in order to enhance the competitiveness of Indian businesses, by expediting release of cargo where compliance is high. This necessitates that the department should be selective in its approach to deployment of its resources. The advances in Information Technology offer an opportunity to address these challenges faced by the department by putting in place an effective risk management system. The primary objective of the Risk Management System, therefore, is to strike an optimal balance between facilitation and enforcement and to promote a culture of compliance. It is intended to improve the management of the resources of the department to enhance the efficiency and effectiveness in meeting stakeholder expectations and to bring the Customs processes at par with the best international practices.
4. With the introduction of the RMS, the present practice of routine assessment, concurrent audit and examination of almost all Bills of Entry will be discontinued and the focus will be on quality assessment, examination and Post Clearance Audit of Bills of Entry selected by the Risk Management System.
5. Bills of Entry and IGMs filed electronically into ICES through the Service Centre or the ICEGATE will be transmitted by ICES to the RMS. The RMS will process the data through a series of steps and produce an electronic output for the ICES. This output will determine whether the Bill of Entry will be taken-up for action (appraisement or examination or both) or be cleared after payment of duty and Out of Charge directly, without any assessment and examination. Also where necessary, RMS will provide instructions for Appraising Officer, Examining Officer or the Out-of-Charge Officer. It needs to be noted that the decisions communicated by the RMS on the need for assessment and/or examination and the appraising and examination instructions communicated by the RMS have be followed by the field formations. It is possible that in a few cases, the field formations might decide to apply a particular treatment to the BE which is at variance with the decision received from the RMS owing to risks which are not factored in the RMS. Such a course of action shall however be taken only with the prior approval of the jurisdictional Commissioner of Customs or an officer authorized by him for this purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and after recording the reasons for the same. A brief remark on the reasons and the particulars of Commissioner's authorization should be made by the officer examining the goods in the departmental comments in the EDI system.
6. The existing system of concurrent audit shall be abolished and replaced by a Post-Clearance Compliance Verification (Audit) function. The objective of the Post Clearance Verification Programme is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS will select the bills of entry for audit, after clearance of the goods, and these selected bills of entry will be directed to the audit officers for scrutiny by the EDI system. In case any possible short levies are noticed, the officers will issue a Consultative Letter setting out the grounds for their view to the Importers/CHAs. This is intended to give the importers an opportunity to voluntarily comply and pay the duty difference if they agree with the department's point of view. In case there is no agreement, the formal processes of demand notices, adjudication etc. would follow. It may also be noted that the auditors are specifically being instructed to scrutinize declarations with reference to data quality and advise the importers/CHAs suitably where the quality of their declarations is found deficient. Such advice is expected to be followed and will be monitored by the local risk managers. It hardly needs emphasis that compliance in all its dimensions is in the mutual interest of the Government and the Trade and Industry and it will enable the government of give increasing levels of facilitation. The Importers/CHAs are urged to co-operate in the department's efforts in this direction.
7. The national management of the Risk Management System shall be the responsibility of the Risk Management Division, being established under the Directorate General of Systems. There will be a local Risk Management System catering to the needs of the Custom Houses. The local Risk Management System will carry out the live processing of the Bills of Entry and Import General Manifests etc.  The Commissioners of Customs are required to appoint the administrator for the 'Local Risk Management System' at the level of the Joint/Additional Commissioner for assigning user privileges on the Local Risk Management System.
8. The implementation of RMS will necessitate reorganization of staff. Custom Houses are required to undertake a comprehensive re-organization of the officers deployed for processing Bills of Entry.   The present appraising facilities should be right-sized in tune with the reduced quantum of Bills of entry coming for assessment. Such staff should be diverted to the Post Clearance Audit. The strength of the staff for examination of cargo would also be required to be readjusted.
9. The existing facilitation schemes viz., the Self-assessment scheme, Fast track / green channel scheme, Accelerated customs clearance schemes etc., would be phased out with the implementation of the RMS and the Accredited Clients Programme.  As the deployment of the RMS is likely to take place in phased manner across the ICES locations, the existing facilitation schemes will continue to be operative in each Customs station until the operationalisation of the RMS at that station.
10. NACEN will support the RMD in conducting the necessary training of the officers for running and managing the RMS at the ICES locations.
11. Detailed draft Public Notices, Standing Orders and Instruction Manuals will be forwarded by the DG (Systems) separately
12. Receipt of this circular may please be acknowledged


In Indian customs Act, the term "prohibited" found Prohibited, Restricted & Freely
in Sec 11 & Sec 111 and  there is no importable goods are the terms mentioned   
specific term as Restricted mentioned  in the Customs the respective sub heading in Indian Trade Clarification
( Harmonised System ) shortly ITC (HS)
Prohibited  goods can not be imported and Restricted goods can be imported  by an
hence even imported by an importer, the sameimporter under licence issued by  licencing 
will be absolutely  confiscated.authorities ( JDGFT )


( Inland container depots)(Container Freight Station)
(other than CFS attached to ICD)
Appointed under Sec 7(aa) of Customs Act 1962  through Board NotificationCFS are appointed by Principal Commissioner or Commissioner of customs
in the official act as custodians of imported goods  under
Sec 45 of CA 1962.  A  PN will be issued by 
commissioner approving the CFS.
Normally containers are aggregated  (pooled)Here containers are stuffed /de-stuffed; goods 
for onward  movement to or from the portsare examined by customs officers and clearance 
of cargo (for export/home consumption) takes
Normally located outside the port townsNormally in the vicinity of  Port towns
CFS may be attached to an ICD to performCFS is treated as an extension of a port / ICD /
the functions of a CFS.Aircargo complex (wherever not attached to 
an ICD)
If CFS is attached to an ICD Customs officers areIn a CFS (other than ICD attached  CFS )
posted to on recovery basis. The salaries the officers are posted overtime fees basis (for 
and pension contribution of the performance of  duties after normal hours
officers actually  posted  are recovered.of working.) and O.T. is collected from the 
merchant / beneficiaries under the Merchant Overtime Fee Rules 1998

CUSTOMS LAW MADE EASY SERIES - Types of Indian Customs Duties & how to calculate total duty payable ?

Let us assume assessable value of an item is Rs.100 and BCD 30% & IGST 18%

Duty %
Value  (Rs.)
Assessable value (AV) of imports

Import value
Basic customs Duty  @30%
A X 30/100
Social Welfare Cess
B X 10/100
Anti Dumping / Safeguard Duty
A X 0/100
(A+B+C+D) X 18/100
GST Compensation Cess
(A+B+C+D+E) X 0/100
Total Duty payable

Total of B to F
Value of imports + all duties


(1). Basic Customs Duty ( BCD )

-Levied under section 12 of customs Act 1962
-Rates specified u/s 2 of the customs Tariff Act 1975
-Different rate for different goods
-General effective basic rate is 7.5% at present
-The basic duty may be exempted by a notifications u/s 25
-The basic duty may have two rates under the first schedule to customs tariff act 1975, viz
standard rates and preferential rates.

(2). Integrated Goods and Services Tax ( IGST )

As per section 3(7) of the Customs Tariff Act, any article being imported to India shall be liable to pay integrated Goods and service tax, at such rate as is leviable under section 5 of IGST ACT, 2017 on a like article on its supply in India, on the value of imported article.
As per section 3(8) of the Customs Tariff Act, the value for the purpose of levy of the IGST will be an aggregate of –
(a)    Value of imported article determined under section 14(1) of Customs Act or Traiff Value of such article under section 14(2) of Customs Act, 1962
(b)    Duty of Customs leviable on that article under section 12 of Customs Act (BCD) and any sum chargeable on that article under any law for the time being in force as an additional to a duty of Customs but does not include any tax under section 3(7) or Cess under section 3(9) of Customs Tariff Act.


As per section 3(9) of the Customs Tariff Act, any article being imported into India shall be liable to pay Goods and Service Tax Compensation Cess at such rate as is leviable under section 8 of GST  (Compensation to States) Cess Act, 2017. on the value of like article on its supply to india.
As per section 3(10) of Customs Tariff Act, the value for Compensation Cess will be aggregate of
(a)    Value of imported article determined under section 14(1) of the Customs Act, 1962.
(b)    Duty of Customs leviable on that article under section 12 of Customs Act and any sum chargeable on that article under section 12 of Customs Act and any sum chargeable on that article under any law for the time being in force as an additional to duty of Customs but does not include any tax under section 3(7) or Cess under section 3(9) of Customs Tariff Act

(4)Anti Dumping Duty

-Levied u/s 9A of Customs Tariff Act 1975
-Where any article is exported  by an exporter or producer from any country to India at less than it’s normal value, then on its import the central Government by way of notification in the official Gazette may impose an anti dumping duty not exceeding the margin of dumping in relation to such article.
-Dumping means exporting goods to India at prices lower than the ones in the domestic market of the exporting country, subject to certain adjustments
-Central Government may levy ADD to prevent dumping  upto the margin of dumping
-Margin of dumping is the DIFFERENCE between the normal value and the price charged for exports to India.
-Normal Value means comparable price in the ordinary course of trade in the exporting country, after making adjustments to the extent of conditions of sale,taxation etc.
-Injury margin means difference between fair selling price of domestic industry and landed cost of imported product.
-ADD is permissible under WTO.
-The industry which complains whether individually or collectively, must account for at least 25% of the production in India, of the commodity alleged to be dumped into India.
-The Designated Authority , Ministry of commerce shall carry out an enquiry as per the procedure set out in the Customs tariff (Identification, Assessment and collection of Anti Dumping Duty on dumped articles for determination of injury) rules 1995.

-ADD can be charged provisionally: The designated Authority pending determination of margin of dumping can impose ADD on a provisional basis. On completion of enquiry, if ADD is reduced then the excess is refundable. But if ADD imposed by the designated authority higher than the provisional duty already imposed, the differential shall not be collected from the importer.
- The Central Government may on the basis of the preliminary findings received by the  designated Authority, impose a provisional duty not exceeding the origin of dumping, Within 60 days from the date of public notice. The duty so levied remain in force only for a period of “Not Exceeding 6 Months” which may be extended to 9 Months upon request from exporters representing a significant percentage of the trade.

ADD can be charged retrospectively: The Central Government, by notification in official Gazette, levy ADD retrospectively from a date prior to the date of imposition of ADD but not beyond 90 days from the date of notification. This system is applied when massive dumping of an article imported in a relatively short time.
-The Designated Authority shall from time to time, review the need for the continued imposition of the ADD and shall, if it is satisfied on the basis of information received by if that there is no justification for the continued imposition of such duty, recommend to the Central Government for its withdrawl. Review has to be concluded within a period NOT exceeding twelve months from the date of intimation of such review.

Under – Rule 14, The Designated Authority shall, by issue of a public notice terminate the investigation immediately if;
a. It receives a request in writing for doing so from or on behalf of the domestic Industry affected, at whose instance the investigation was initiated.
b. When there is no sufficient evidence of dumping and where there is no justification.
c. It determines that the margin of dumping is less than two percent of export price.
d. It determines that the volume of the dumped imports, actual or potential from a particular country accounts for less than Three percent of the imports of line product, Unless, the countries which individually account for less than seven percent of the import of the like product or
e. It determines that the injury where applicable, is negligible.

The ADD unless revoked earlier , cease to have effect on the expiry of five years from the date of such imposition. However Central  Government may from time to time extend the period of such imposition for a further period of five years where a review initiated before expiry of five years, has not come to a conclusion before such expiry. The ADD may continue to remain in force, pending the outcome of such a review for a further period NOT exceeding ONE year.

ADD is country/ countries & supplier/ suppliers specific now w.e.f Finance Act 2009 .But it was country specific earlier. Designated Authority V India Metals and Fero Alloys Ltd (2009) 234 ELT 386

-Refund of ADD is subject to unjust enrichment Automotive Tyre Manufacturers Association, 2011 (SC)
(5) Safeguard Duty

-Levied u/s 8B of customs Tariff Act 1975
-The Central Government by virtue of customs Tariff Act 1975 empowered to impose safeguard duty after enquiry on any article imported into India in such increased quantities so as to cause or threaten to cause injury to domestic Industry.
-This levy is permissible under the WTO

However the safeguard duty shall not be imposed in the following cases;

a. Articles originating from developing country so long as the share of imports of that article from the country does not exceed 3% of the total imports of that article into India.
b. Where the article is originating from more than one developing country, then taking total imports of that article from all such countries does not exceed 9% of total import of that article into India.
c. Safeguard duty is not applicable of goods imported by 100% EOU,SEZ & FTZ unless specifically made applicable in the notification.

-safeguard duty cease to have effect on the expiry of four years.
-Provided safe guard duty shall continue to be imposed if there is continued injury or threat to domestic industry
-The safeguard duty is imposed for the purpose of protecting interests of any domestic industry in India aiming to make it more competitive. Further, no safeguard duty shall remain in force beyond period of 10 years from the date of its initial imposition.
-During preliminary findings, if it is found that increased imports have caused or threatened to cause injury to a domestic industry, u/s 8 B(2) the Central Government  is also empowered to impose provisional safeguard duty .Provided, provisional safeguard duty shall not remain in force more than 200 days. On final determination, Central government comes to an opinion that no injury has been caused and there is no such threat to cause injury, duty collected shall be refunded.
-Safeguard duty Rule - Customs tariff (Identification and Assessment of safeguard duty) rules, 1997.

(6) National Calamity Contingent Duty

NCCD is levied under finance Act at varying rates on select commodities. Basic purpose of this duty is to take care of calamities that the nation may face.
Example: NCCD on Pan masala, cigarettes etc,

(7) Social Welfare Cess ( SWC )

a. SWC 10% is applicable on basic custom duty
c. No SWC on SGD, ADD or any other protective duty.


Imposed under Sec 115 & 125(1) of Customs Act1962Penalty governed  by various section Namely
Sec 30, 72, 112, 114, 114A,  114AA, 116, 117 & 158.
Fine is related to goods.
It is known as redemption fine seized /
Penalty is on the person  (offender) also. It may
confiscated  conveyance / goods from customsbe imposed on importer or exporter, on Customs Broker and
under Sec 115 & 125(1) of CA 62also on steamer agents 
There are discretionary fine powers vestedPenalty under Sec 114A is mandatory  and penalty
with customs officers to impose fine to the under other sections are discretionary.
extent provided in Sec 115 & 125(1)

Where the fine imposed under sec125 is not paid within a period of 120 days from the date of option given thereunder, such option shall become void, unless an appeal against such order is pending
Note : Late presentation of BE will attract additional charges under Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018 which is NOT either Fine or Penalty.
Ref Sec46(3) second Proviso - it uses word "charges" only

Revision of All Industry Rates (AIRs) of Duty Drawback.pdf


1Drawback is a covered under section 74, 74(1)Refunds are covered by Sec 26 & 27  of CA 62
74(2) and Sec 75 of Customs Act 62
2Under Sec 74(1) of CA 62, DBK of duty is paidExport duty paid in certain cases, refund is 
on import duty paid amount for unused goods whichallowed subject to the fulfilment of the three 
are exported back with in two years of  paymentconditions specified in Sec 26.
of duty is allowed at 98% of the total duty
subject to establishing the identity of
the said goods by AC/DC
2a.Under Sec 74(2) of CA 62,   DBK of duty is paidSec 27 Refund is applicable to export duty or 
on the import duty paid for used (taken for use)import duty paid in excess for any reason 
goods which are exported back within 18 months(classification, valuation errors  in calculation, 
at a graded % specified in the table to change rate etc..)
Notification 19/1965 as amended 23/2008
subject to establishing the identity of 
goods AC/DC .
2c.Under Sec 75 of CA 1962 on the goods
manufactured in India out of the 
import duty paid inputs and / or the  C.E.
duty paid inputs and / or by export related 
services, drawback on the such manufactured
goods when exported DBK is paid under the
related provisions of  95/2018 dt.06.12.18
Customs and Central Excise Duties Drawback Rules, 2017
3Concept of Unjust Enrichment specified in Sec 27(2) of the Concept of UJE will be applicable to sec 27 of 
CA 1962 will not be applicable.CA 62 (Sec 27(2) of CA 62 )
however is not applicable to sec 26 Refund 
which is specified  in section 27(2) of CA 62.