Govt. to clear at least 90 pc of exporters’ duty drawback claims within three days

The Centre has reduced the timeframe for processing of duty drawback claims from seven days to three days. The decision is expected to help improve cash flows of exporters.

As per the revised rules, at least 90 per cent of the duty drawback claim of an exporter will have to be credited within the specified period.

The Government's decision comes after exporters complained of cash crunch due to the COVID-19 pandemic, it is being said. Duty drawbacks are refunds set off against future liabilities and accrued by exporters for the specified period.

The government is also looking to reduce pendency of duty drawback claims with an aim to further reduce the process window. Claims usually take time and reducing the window would pressure officials to complete the process within the timeframe.