Major Amendments to Customs Duty Drawback Rates for Select Tariff Items in India

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Dated: 17.07.2026

Major Amendments to Customs Duty Drawback Rates for Select Tariff Items in India

The Government of India has recently issued Notification No. 64/2026-Customs (N.T.), introducing significant amendments to the customs duty drawback rates for specific tariff items under Chapter 71. This move, published in the Gazette of India on July 16, 2026, reflects the government’s ongoing efforts to align export incentives with current market realities and support the competitiveness of Indian exporters.

Background: Understanding Duty Drawback

Duty drawback is a key export incentive mechanism under Indian law, allowing exporters to claim a refund of customs and central excise duties paid on inputs used in the manufacture of exported goods. The rates and procedures are governed by the Customs Act, 1962, the Central Excise Act, 1944, and the Customs and Central Excise Duties Drawback Rules, 2017.

Key Changes Introduced by Notification No. 64/2026

The latest notification amends the earlier Notification No. 77/2023-Customs (N.T.), specifically revising the drawback rates for certain items in Chapter 71, which covers precious metals, stones, and jewelry. The changes are as follows:

Tariff Item 711301
- Previous Drawback Rate: 773.17
- Revised Drawback Rate: 1851.99
- Implication: This substantial increase nearly doubles the refund available to exporters under this tariff item, enhancing their cost competitiveness.
Tariff Item 711302
- Previous Drawback Rate: 14,990.66
- Revised Drawback Rate: 29,501.09
- Implication: The rate has almost doubled, providing a significant boost to exporters dealing in this category.
Tariff Item 711401
- Previous Drawback Rate: 14,990.66
- Revised Drawback Rate: 29,501.09
- Implication: Similar to 711302, this change offers a major increase in the drawback benefit.

Rationale and Impact

These amendments are designed to:

Support Exporters: By increasing the drawback rates, the government aims to offset higher input costs and global market fluctuations, making Indian exports more attractive.
Promote Compliance: Clear and updated rates help exporters plan their operations and ensure compliance with customs regulations.
Boost Foreign Exchange Earnings: Enhanced incentives can lead to higher export volumes, contributing positively to India’s balance of payments.

Implementation and Reference

The revised rates are effective as per the date of publication in the Gazette.
Exporters should refer to the updated Schedule in Notification No. 77/2023-Customs (N.T.), as amended by this and previous notifications, for the latest applicable rates.

Conclusion

The upward revision of customs duty drawback rates for select items under Chapter 71 demonstrates the government’s commitment to supporting the export sector. Exporters dealing in these tariff items should update their documentation and processes to take full advantage of the new rates.

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

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