CBIC Enables Online Filing for Customs Refunds, Last Date to File Manual Application Announced [Read Circular]

The Central Board of Indirect Taxes and Customs ( CBIC ) has announced the launch of an online system for filing customs refund applications for avoiding the time consuming manual filings. The board has issued the circular regarding the same and also notified the last date to submit manual filings. 

This is to concur with the government's broader initiative to digitize all remaining customs procedures by mid-2026, as announced by the Finance Minister. By eliminating manual interventions, CBIC expects to reduce processing time and costs associated with international trade, making customs procedures more transparent and accessible.

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Under the Customs Act, 1962, importers and exporters can claim refunds on customs duties and interests paid, subject to specific conditions. Until now, refund applications were processed manually under the Customs Refunds Application (Form) Regulations, 1995, guided by CBIC Circulars No. 24/2007-Cus and No. 22/2008-Cus. 

The manual process required significant paperwork, physical interactions, and compliance with multiple audit stages, depending on the refund amount. Recognizing the delays and inefficiencies in the existing system, CBIC has now enabled electronic filing and disbursal of customs refunds via the ICEGATE portal.

The new system allows applicants to submit refund claims digitally, along with necessary supporting documents. If reassessment of the Bill of Entry is required before refund processing, the system provides an option to request it electronically. Once reassessment is completed, a pre-filled refund application form will be available for submission. 

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The refund amounts will be directly credited to the bank accounts registered in the Customs Automated System, ensuring secure and hassle-free transactions. Additionally, applicants will receive a Unique Application Reference Number (ARN) upon submission, enabling real-time tracking of their refund status.

Proper officers will scrutinize applications within 10 days of ARN issuance, with any deficiencies being communicated through the ICEGATE dashboard. Acknowledgment numbers will be generated once all deficiencies are resolved. In case of rejection, show-cause notices and refund orders will be communicated electronically. 

It is also to be noted that the CBIC has also shifted concurrent refund audits to post-audit, with guidelines on selection criteria to be finalized by DG-Audit in consultation with DG-ARM.

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As a transitional measure, applicants can continue to file refund applications manually or online until March 31, 2025. However, after this date, manual applications will not be accepted unless specifically permitted by the Principal Commissioner or Commissioner of Customs, with recorded reasons. CBIC has also modified its earlier circulars to reflect these changes, with DG (Systems) set to issue detailed guidelines on the new refund processing mechanism.

To Read the full text of the Circular CLICK HERE

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