CBIC Clarifies Refund and Drawback Mechanism for Duty Credit Scrips
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 30/2026-Customs dated 03 July 2026, providing much-needed clarity on the grant of drawback under Section 74 and refund under Section 27 of the Customs Act, 1962, where import duty has been paid using Duty Credit Scrips.
This important Customs update introduces a uniform mechanism for processing refund and drawback claims, helping importers and exporters achieve greater procedural consistency and compliance. Businesses seeking expert guidance on Customs regulations, indirect taxation, DGFT compliance, and international trade can explore Coriolis Corp’s Tax and Compliance Services.
Key Highlights of CBIC Circular No. 30/2026-Customs
1. Refund and Drawback through Re-credit
Where import duty has been paid, either fully or partially, using Duty Credit Scrips, the admissible drawback or refund will be granted through re-credit and not in cash.
2. Re-credit for RoDTEP and RoSCTL Scrips
For RoDTEP and RoSCTL Duty Credit Scrips, the eligible drawback or refund amount will be re-credited to the IEC holder’s electronic credit ledger. This enables fresh e-scrip generation and future utilisation in accordance with the prescribed framework.
3. Re-credit Certificate for Legacy Schemes
For legacy export promotion schemes such as MEIS and SEIS, where electronic re-credit is not feasible, the Customs authorities will issue a Re-credit Certificate. This certificate can be used for the revalidation of Duty Credit Scrips with the Directorate General of Foreign Trade (DGFT).
Why Does This Circular Matter?
This circular removes inconsistencies in the processing of drawback and refund claims across various Customs formations.
The clarification provides:
- A uniform mechanism for drawback and refund processing.
- Greater procedural clarity for businesses using Duty Credit Scrips.
- Consistent implementation by Customs authorities.
- Improved certainty for importers and exporters claiming eligible benefits.
The circular is expected to simplify compliance while ensuring transparency in administering refund and drawback provisions under the Customs Act, 1962.
Expert Insight from Coriolis Corp
Keeping track of evolving Customs regulations is essential for businesses involved in international trade. Timely understanding of CBIC notifications and DGFT guidelines helps importers and exporters minimise compliance risks and efficiently utilise available benefits.
At Coriolis Corp, we assist businesses with Customs Advisory, Foreign Trade Policy (FTP) Compliance, DGFT Advisory, Import & Export Compliance, and Indirect Tax Services to help them navigate changing regulatory requirements with confidence.
Source
CBIC Circular No. 30/2026-Customs
Date: 03 July 2026
Frequently Asked Questions
Q1. What does CBIC Circular No. 30/2026-Customs clarify?
CBIC Circular No. 30/2026-Customs clarifies the procedure for granting drawback under Section 74 and refund under Section 27 of the Customs Act, 1962, where import duty has been paid using Duty Credit Scrips.
Q2. Will drawback or refund be paid in cash?
No. Where import duty has been paid through Duty Credit Scrips, the admissible drawback or refund will be granted through re-credit and not in cash.
Q3. How will RoDTEP and RoSCTL benefits be re-credited?
The eligible amount will be re-credited to the IEC holder’s electronic credit ledger, enabling fresh e-scrip generation and future utilisation under the prescribed framework.
Q4. What happens for MEIS and SEIS Duty Credit Scrips?
For MEIS and SEIS schemes, Customs authorities will issue a Re-credit Certificate, which can be used for revalidation of Duty Credit Scrips with DGFT.