Refund, Drawback and Remission of Duty

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Section 16 of the Customs Act 1967 provides for the Director-General of Customs to consider refund the money that has been overpaid as customs duties or as warehouse rent or as any other charge under the said Act provided that a claim in respect of any refund is made within one year the over payment was made.

Section 18 of the Customs Act 1967 states that after removal of any goods from customs control, no abatement of customs duties shall be allowed on any such goods on account of damage or to pay duty at preferential rate or that the weight, measure, volume or rate as determined by the proper officer of the customs for the purpose of ascertaining the duty on such goods or any other factor affecting the goods is incorrect unless notice in writing of such claim has been given at or before the time of removal.

Upon removal of any goods from the customs control, no abatement of export duty shall be allowed on any such goods on account of damage, theft or loss.

Section 93 of the Customs Act 1967 provides for drawback of nine tenth of the customs duties paid on goods which are imported and then re-exported subject to the conditions herein specified.

Under the provision of Section 99 of the Customs Act 1967 where any goods which are prescribed to be goods in respect of which drawback may be allowed on re-export as part or ingredient of any goods manufactured in the Federation and such prescribed goods are re-exported from the Federation then if the customs duty has been paid on such prescribed goods, the Director-General of Customs may on such re-export, allow the manufacturer a drawback of the duty so paid as such rates as may be prescribed subject to conditions therein specified.


However, manufacturers who wish to make use of this facility should submit it to the relevant State Director of Customs. The Director-General of Customs may remit the whole or any part of the customs duty payable on dutiable goods which has been imported or destroyed at any time after their arrival within the Federation and prior to removal from customs control.

Under normal circumstances where goods are found to be deficient in a licensed warehouse, the licensee of such warehouse shall in the absence of proof to the contrary be presumed to have illegally removed such goods and shall be liable to pay the customs duty livable on the goods found to be deficient.

However, the Director-General of Customs may remit the whole or any part of the customs duty livable on the goods found deficient if he is satisfied that such deficiency has been caused by unavoidable leakage, breakage or any other incident.

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