Duty Drawback vs RoDTEP: The Difference, AIR vs Brand Rate & How to Claim

Duty Drawback gives exporters back the customs duty paid on imported inputs that went into the goods they export. Indian exports should not carry the cost of Indian import duty, and drawback is how that cost comes back to you. This guide explains how the scheme works, the two ways rates are fixed, how to claim it on your shipping bill, and how it differs from RoDTEP.

What is Duty Drawback?

Drawback is allowed under the Customs Act, 1962 and the Customs and Central Excise Duties Drawback Rules, 2017. It covers two situations:

• Section 75: inputs used in exported goods. You import raw materials or components, use them to make a product, and export it. The duty on those inputs is refunded. This is what most manufacturers and merchant exporters claim.
• Section 74: re-export of imported goods. You import goods and export them again, for example goods rejected by your customer. A large part of the import duty is refunded, with a lower share if the goods were used in India.

Drawback refunds customs duty. GST paid on inputs is handled separately, through input tax credit or the IGST refund on exports.

All Industry Rate vs Brand Rate

	All Industry Rate (AIR)	Brand Rate
What it is	A standard rate per product, notified by the government in the Drawback Schedule	A rate fixed for your own product, based on your actual duty paid
How it is expressed	A percentage of FOB value, often with a cap per unit	An amount per unit, worked out from your input data
Who uses it	Most exporters; it needs no separate application	Exporters whose product has no AIR, or whose actual duty is clearly higher than the AIR
How you claim	Declare the drawback serial number in the shipping bill	Apply to the customs authority with input and duty details, then claim against the rate

For most products AIR is simpler and faster, because the refund is processed electronically after export. A brand rate application is worth the effort only when your imported input content is high.

Who can claim Duty Drawback?

• Manufacturer exporters and merchant exporters, as long as the goods are exported and the product has a drawback rate
• The exporter must hold an IEC, have the AD code of their bank registered at the port of export, and have a bank account registered with customs for drawback credit
• Export proceeds must be realised within the period allowed under FEMA rules. Drawback can be recovered if the money does not come in.

How to claim drawback on the AIR route

1. 1. Find your product's rate. Look up the tariff item of your export product in the current Drawback Schedule and note the drawback serial number, the rate and any cap.
2. 2. Set up once: IEC, AD code registration at the port, and a bank account registered with customs on ICEGATE.
3. 3. Declare drawback in the shipping bill. Your customs broker enters the drawback serial number against each item. The shipping bill itself is your drawback claim; no separate form is needed.
4. 4. Export the goods. After the let export order and the export general manifest are filed, the claim is processed electronically.
5. 5. Receive the refund directly in the registered bank account. Track the status on ICEGATE.

For a brand rate, you apply to the jurisdictional customs authority with details of the imported inputs, duty paid and consumption per unit. Apply within the time limit in the Drawback Rules, generally three months from the let export date, with limited extensions.

Duty Drawback vs RoDTEP: what is the difference?

	Duty Drawback	RoDTEP
What it refunds	Customs duty on imported inputs	Taxes and levies that are not refunded any other way, such as VAT on fuel, electricity duty and mandi tax
How you receive it	Cash credited to your bank account	Electronic scrips that can be used to pay import duty, or sold
Where you claim it	In the shipping bill	In the shipping bill, with scrips issued on ICEGATE

The two cover different taxes, so an exporter can usually claim both on the same shipment. See our RoDTEP vs Duty Drawback vs EPCG comparison for how EPCG fits in.

Common mistakes that cost exporters their drawback

• Not declaring the drawback serial number in the shipping bill, or using the wrong one
• Bank account or AD code not registered with customs, so the refund cannot be credited
• Product description or tariff item that does not match the Drawback Schedule entry
• Ignoring the per-unit cap, so the expected refund is much lower than planned
• Export proceeds not realised in time, which leads to recovery of drawback already paid
• Missing the time limit for a brand rate application

Frequently asked questions

How BuyGenix Solutions helps

We help you find the right tariff item and drawback rate, get your IEC, AD code and bank registration in place, and check shipping bill declarations so the refund is not lost. BuyGenix members can also see live buyer requirements from importers in India and abroad, so more of your shipments qualify for drawback in the first place.