CMA Final · Indirect Tax Laws and Practice · Duty Drawback
Under Section 74 of the Customs Act, 1962, duty-paid imported goods that are capable of being easily identified are entered for export. Subject to the conditions, what portion of the duty paid on importation is repaid as drawback?
Ninety-eight per cent of the import duty paid is repaid as drawback under Section 74(1), provided the goods are identified to the officer's satisfaction as those imported and are entered for export within two years from the date of payment of duty. Full refund is not allowed.
- AFifty per cent of the duty
- BSeventy-five per cent of the duty
- CNinety-eight per cent of the dutyCorrect
- DOne hundred per cent of the duty
Explanation
Section 74(1) provides that ninety-eight per cent of the duty paid on importation shall be re-paid as drawback, provided the goods are identified as those imported and are entered for export within the time limit. The full 100% is not allowed, so that option is wrong.
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