Drawback of Safeguard Duties
CBEC clarifies that Safeguard Duties which are leviable under Section 8B or Section 8C of the Customs Tariff Act are rebatable as Drawback in terms of Section 75 of the Customs Act. Since Safeguard Duties are not taken into consideration while fixing All Industry Rates of drawback, the drawback of such Safeguard Duties can be claimed under an application for Brand Rate under Rule 6 or Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. This would necessarily mean that drawback shall be admissible only where the inputs which suffered Safeguard Duties were actually used in the goods exported as confirmed by the verification conducted for fixation of Brand Rate.
Where imported goods subject to Safeguard Duties are exported out of the country as such, then the Drawback payable under Section 74 of the Customs Act would also include the incidence of Safeguard Duties as part of total duties paid, subject to fulfilment of other conditions.
Board had issued a similar clarification in respect of refund of anti dumping duty as drawback vide Circular No. , dated 11.10.1995.
CBEC Circular No. 23/2015-Customs, Dated: September 29, 2015