Guidelines for Drawback and Refunds When Import Duty Is Paid via Duty Credit Scrips

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Dated: 04.07.2026

Guidelines for Drawback and Refunds When Import Duty Is Paid via Duty Credit Scrips

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 30/2026 to clarify the procedures for granting drawback or refunds under the Customs Act, 1962, specifically in cases where import duties have been paid using duty credit scrips. This article provides a comprehensive overview of the new guidelines, their implications, and practical steps for importers and exporters.

Background

Duty credit scrips, such as those issued under RoDTEP, RoSCTL, MEIS, and SEIS schemes, are commonly used by importers to pay customs duties. However, confusion has arisen regarding the correct method for granting drawback (under Section 74) or refunds (under Section 27) when duties are paid using these scrips. The CBIC observed inconsistent practices across customs offices, with some granting refunds in cash and others re-crediting the scrips.

Key Clarifications from Circular No. 30/2026

No Cash Refunds for Duties Paid via Scrips
- If import duty was paid wholly or partly through duty credit scrips, any subsequent drawback or refund must be granted by re-crediting the scrip, not by cash payment.
- This ensures that the benefit is restored in the same form as originally used for payment.
Re-credit Process for Modern Schemes (RoDTEP/RoSCTL)
- For duties paid using RoDTEP or RoSCTL scrips, the refund or drawback will be re-credited to the electronic credit ledger of the Importer Exporter Code (IEC) holder.
- The re-credited amount can be used to generate new e-scrips, which can then be utilized as per the procedures outlined in Notification No. 75/2021-Customs (N.T.).
- The Customs Automated System (CAS) is being updated to facilitate this process, and a detailed advisory will be issued once the system is ready.
Handling Legacy Schemes (MEIS, SEIS, etc.)
- For older schemes where re-crediting the scrip is not technically feasible, customs authorities will issue a re-credit certificate.
- This certificate will allow the Directorate General of Foreign Trade (DGFT) to revalidate the duty credit scrip, based on details such as the scrip used, date of import, and amount debited.

Practical Steps for Importers and Exporters

Check Mode of Duty Payment
- Always verify whether import duties were paid using duty credit scrips or cash.
Apply for Drawback/Refund
- When eligible for drawback under Section 74 or refund under Section 27, submit your application as usual.
Expect Re-credit, Not Cash
- If duties were paid via scrips, expect the refund or drawback to be processed as a re-credit to your electronic ledger or via a re-credit certificate (for legacy schemes).
Utilize Re-credited Amounts
- Use the re-credited amounts to generate new e-scrips for future imports, following the prescribed procedures.

Implications and Benefits

Uniformity: The circular ensures consistent practices across all customs offices, reducing confusion and disputes.
Transparency: Importers and exporters have clear guidance on how refunds and drawbacks will be processed.
System Integration: The upcoming module in the Customs Automated System will streamline the process, making it more efficient and user-friendly.

Conclusion

Circular No. 30/2026 brings much-needed clarity to the process of granting drawback and refunds when duties are paid using duty credit scrips. By mandating re-credit instead of cash refunds, the CBIC ensures that the benefits are restored in the same form as originally availed, maintaining the integrity of the duty credit system.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CBIC, Ministry of Finance, Govt. of India

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