Government Notifies Revised Duty Drawback Rates for FY 2026-27 — Key Changes for Exporters

Duty Drawback FY 2026-27: Revised AIR Schedule — What Has Changed

The Ministry of Finance (Department of Revenue) has notified the revised All Industry Rate (AIR) Duty Drawback schedule effective from 1st April 2026. The drawback schedule specifies the rate of customs and central excise duty refund available to exporters for duties embedded in export product inputs. These rates are revised annually to reflect changes in import duties, GST rates, and export product costs.

Significant Rate Changes

• Textiles and Apparel: Drawback rates for man-made fibre (MMF) garments and fabrics revised upward by 0.3–0.8 percentage points, reflecting higher embedded duty on polyester and nylon inputs.
• Engineering Goods: Rates for stainless steel cutlery, auto components, and hand tools marginally revised following changes in steel import duties.
• Chemicals: Drawback rates for certain organic chemicals and dyes revised downward reflecting reduced import duty on intermediates.
• Leather and Leather Goods: Rates for finished leather products increased by 0.2–0.5% to offset higher tanning chemical costs.
• Handicrafts (brass and copper): Revised upward by 0.5% to account for higher LME prices and metal import costs.

Claiming Duty Drawback

Duty Drawback is claimed at the time of export by declaring the relevant Chapter and Drawback Serial Number on the Shipping Bill. The drawback amount is credited to the exporter's bank account by CBIC after the Export General Manifest (EGM) is filed and LEO (Let Export Order) is obtained. Samarth EXIM assists with drawback rate classification, Shipping Bill verification, and drawback claim follow-up to ensure maximum recovery.