Custom Duty Drawback

Custom Duty Drawback in Pakistan – Complete Guide

Custom Duty Drawback is a refund mechanism for exporters in Pakistan who have paid import duties on raw materials or inputs used in manufacturing exported goods. This scheme encourages exports by reducing the financial burden on businesses and promoting international trade.

What is Custom Duty Drawback?

Custom Duty Drawback is a system under which exporters can claim a refund of the customs duties paid on imported raw materials or goods used in manufacturing products that are exported. This scheme is managed by the Federal Board of Revenue (FBR) and Pakistan Customs.

Benefits of Custom Duty Drawback in Pakistan

  • Cost Reduction: Helps exporters recover import duty costs.
  • Competitive Pricing: Reduces production costs, making exports more competitive.
  • Boosts Exports: Encourages businesses to expand in the international market.
  • Financial Relief: Provides cash flow support to exporters.
  • Compliance with Trade Agreements: Aligns with global trade policies to promote exports.

Eligibility Criteria for Custom Duty Drawback

To qualify for a Custom Duty Drawback, exporters must:

  • Be registered with FBR and Pakistan Customs.
  • Have paid custom duties on imported raw materials.
  • Manufacture goods using the imported materials and export them within the stipulated time.
  • Maintain proper records and documentation of imports and exports.
  • Submit a valid duty drawback claim within the allowed timeframe.

Process to Claim Custom Duty Drawback in Pakistan

1. Submission of Application

  • The exporter submits a Duty Drawback Claim Form to the Customs Department.
  • Attach relevant export documents, invoices, and duty payment proofs.

2. Verification & Approval

  • Pakistan Customs verifies the submitted documents and cross-checks with import/export records.
  • If all requirements are met, the claim is approved.

3. Refund Issuance

  • The approved refund amount is credited to the exporter’s bank account or provided via an official instrument.

Documents Required for Custom Duty Drawback Claim

  • Export Shipping Documents (Bill of Lading, Export Invoice, Packing List, etc.)
  • Import Documents (Bill of Entry, Duty Payment Receipts, etc.)
  • Manufacturing Proof (if applicable)
  • Bank Account Details for Refund Transfer
  • Duty Drawback Claim Form

Timeframe for Duty Drawback Claim

  • The claim must be submitted within one year from the date of export.
  • The processing time for duty drawback claims varies, but generally, it takes 30 to 90 days.

Get Expert Assistance for Custom Duty Drawback Claims

Navigating the Custom Duty Drawback process can be complex, but Pakistan Business Consultants offers expert guidance to ensure a smooth claim process.

📞 For Free Consultancy, Contact Us:
📍 Pakistan Business Consultants
📞 Phone: 021-34302775-78
📲 Call & WhatsApp: 0334-0200347 / 0300-2625205

Conclusion

Custom Duty Drawback in Pakistan is an excellent facility for exporters to recover their import duty costs. By following the correct process and ensuring compliance, businesses can benefit from this scheme and improve their profitability. Pakistan Business Consultants provides expert services to help you claim your duty drawback without hassle. Contact us today!