Karol Bagh | IAS GS Foundation Course | 29 May, 6 PM Call Us
This just in:

State PCS

Daily Updates

Important Facts For Prelims

Disbursal of Duty Drawback by PFMS

  • 15 Jun 2024
  • 4 min read

Source: PIB

Recently, the Central Board of Indirect Taxes and Customs (CBIC) has decided to electronically transfer duty drawback funds via the Public Finance Management System (PFMS), directly to exporters' bank accounts to ensure transparency and efficiency.

What is Duty Drawback ?   

  • Duty drawback under section 75 of the Customs Act, 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods.
  • This system helps exporters mitigate some of the costs incurred during the export process, particularly within the supply or value chain.

Public Financial Management System (PFMS)

What is the Significance of Electronic Disbursal of Duty Drawbacks?

  • Streamlining the Process: Electronically transfer of duty drawback funds has been introduced to streamline the process, reduce processing time, eliminate manual intervention, and enhance transparency in customs operations. 
  • Less Paperwork: It eliminates the need for physical documentation and manual processing, reducing the time and effort required to claim the refund. 
  • Promotes Transparency: The electronic system enhances transparency by providing exporters with real-time visibility into their claims' status and enabling seamless refund process tracking.
  • Trade Facilitation: This initiative aligns with CBIC's commitment to paperless customs and trade facilitation, building upon its implementation of the World Trade Organization's, Trade Facilitation Agreement (TFA).

UPSC Civil Services Examination, Previous Year Questions (PYQs)


Q1. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)

  1. Development of infrastructure facilities.
  2. Promotion of investment from foreign sources.
  3. Promotion of exports of services only.

Which of the above are the objectives of this Act?

(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Ans: (a)

Q2. A “closed economy” is an economy in which (2011)

(a) the money supply is fully controlled
(b) deficit financing takes place
(c) only exports take place
(d) neither exports or imports take place

Ans: (d)

SMS Alerts
Share Page