Automation of Refund Application and Processing in Customs- Online processing and disbursal of Customs duty refund applications enabled on the Customs Automated System.
Currently, Refund Application under section 27 is filed manually in terms of Customs Refunds Application (Form) Regulations, 1995. CBIC has already stipulated procedure for handling of refunds under Board Circular No. 24/2007-Cus dated 2nd July, 2007 and Circular No. 22/2008-Customs dated 19th Dec, 2008. In short, it inter-alia provides for processing of refunds at different stages i.e receipt, acknowledgement, deficiency memo, issuance of speaking order including on aspects of unjust enrichment, audit mechanism, monitoring mechanism etc. In particular, the mechanism of compulsory concurrent audit (pre-audit) in case of refund of more than Rs. 5 lakh.
To enhance transparency and for electronic disbursal of refunds, an online processing and disbursal of Customs duty refund applications has been developed by CBIC and is enabled on the Customs Automated System.
The key aspects relating to the electronic processing of refund is indicated below for the ease of reference:(a) Applicant may file Refund Application electronically on ICEGATE Portal in terms of Customs Refunds Application (Form) Regulations, 1995 alongwith the supporting documents such as Unjust enrichment certificate etc. (b)In case re-assessment of Bill of Entry is required before refund, option to request re-assessment is also enabled on ICEGATE. Once re-assessment is done, the pre-filled refund application form will be made available for the applicant to file his refund claim. (c)As the refund amount will be credited to the Bank account already registered in Customs Automated System, applicant may check and update the details before filing their refund application.(d)On successful filing of Refund Application at the ICEGATE Portal, Unique Application Reference Number (ARN) will be generated immediately before its scrutiny or checking for its completeness by the Proper Officer.(e)On receipt of Refund Application, the proper officer shall scrutinise the application and intimate any deficiency in the application within 10 days of ARN on the ICEGATE dashboard. The proper officer may ensure that all the queries are sent in one-go and piece-meal queries are avoided.(f)If there is no deficiency or all the deficiencies have been rectified, acknowledgement number shall be generated by the proper officer on the Portal and same will be available to the user.(g)The show-cause Notice in case of rejection or the order for refund sanction or rejection shall be communicated electronically through ICEGATE Portal. Proper officer may pass a speaking order and also including examination of aspects relating to the unjust enrichment. (h)Board has decided to do away with the concurrent audit of refund claims in all cases, and shift the same to post-audit, in view of processing of refund application in electronic environment. The manner of selection for audit will be finalized by DG-Audit in consultation with DG ARM.(i)On sanction of Refund, the amount will be electronically credited to the Bank Account of the Applicant through PFMS system. The process of crediting the refund amount in the Consumer Welfare Fund would continue to be handled in the manner as it exists now. The fact of crediting the refund amount to the Consumer Welfare Fund will be part of refund order. (j)The status of the application will be made available to the applicant at ICEGATE Dashboard. (k)The MIS reports regarding refunds pendency, is also available to the customs officers for efficient, effective and transparent monitoring.
As a transitional measure, applicant may file refund either manually or online modes till 31.03.2025. However, no manual refund application shall be accepted after 31stMarch, 2025, unless the same is allowed by the concerned Pr. Commissioner/ Commissioner of Customs, for the reasons to be recorded in writing.
Download CBIC Circular No. 05/2025-Customs >>
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