In global trade, liquidity is everything. For exporters, just a few weeks of a delayed refund may mean the difference between reinvestment and restraint.
Duty Drawback refunds, specifically under the Brand Rate framework, were created to help give exporters that liquidity advantage. They refund the customs duties on imported inputs, which are consumed in exports, maintaining working capital and competitiveness.
But the reality is that the promise of fast refunds often clashes with slow, manual, time-consuming processes. In FY 2021–22, Indian exporters left ₹15,946 crore in Duty Drawback refunds unclaimed, with 33% of shipping bills never filed in the scheme (CBIC + COVORO analysis).
The problem? Manual, fragmented workflows convert a financial opportunity into a long, unknown wait.
And that is exactly why Brand Rate Duty Drawback Refund Automation is a game-changer, turning refund management from a reactive compliance process into a proactive liquidity strategy.
The Real Cost of Manual Duty Drawback Claims
Duty Drawback is one of the most critical cash recovery mechanisms for exporters. Yet, in most organizations, it’s still managed through spreadsheets, emails, and fragmented documents.
1. Delays That Drain Liquidity
The average Duty Drawback claim, in particular the Brand Rate, takes more than 121 days from the moment it is lodged until a refund is granted.
For an exporter claiming ₹20 crore a year, that equates to almost ₹72 lakh in annual interest lost (assuming an 8.5% interest rate). Instead of contributing to liquidity, refunds remain locked in the system, quietly stifling cash flow and competitiveness.
2. Complex, Error-Prone Calculations
Brand Rate claims are more complex than AIR (All Industry Rate) claims. This is due to the need to carefully map imported inputs, consumption data, and Bill of Entry connections to validate the BoM. Manual errors mean you have to rework, track down the consultant, and validate again. It becomes a long, murky process, and worst, you may miss out on entitlements.
3. Limited Visibility and Fragmented Collaboration
Handling the claim manually leaves no traceability of the audit trail. The documents are often stored in different departments, and consultants are typically left out of the process until the status is updated.
The result?
They do not know where the claim is stuck.
Consultants have been reviewing discrepancies for days.
Refunds are severely delayed or even lost.
Exporters end up financing their own refunds, losing liquidity, time, and momentum.
Introducing Brand Rate Duty Drawback Refund Automation
COVORO's Brand Rate Duty Drawback Refund Automation addresses these obstacles.
It restructures the refundable lifecycle, from digitizing data to filing and reconciliation, into one continuous AI-powered process.
Automation allows exporters to go from waiting for months for refunds to accessing funds in a matter of days.
Liquidity in Days, Not Months
What required 121 days is now possible in as short as 10 days - AI is mapping Bills of Entry to consumption, linking imported components to the correct Bill of Materials, and determining Brand Rate eligibility in real time.
Impact:
Refund cycles reduced by 90%.
Interest costs fall from ₹72 lakh per year to less than ₹5 lakh.
Immediately available working capital for reinvestment.
Automation transforms Duty Drawback from a compliance formality into a liquidity advantage.
Accuracy That Eliminates Rework
Rate claims for branded products require high accuracy in rate calculation and consumption mapping. The AI engine by COVORO automates this entire process and ensures that every detail, from input-output ratios to duty calculation, is verified before any submissions.
Impact:
Consumers and audit-ready claims are 100% accurate.
90% reduction in reliance on consultants and rework.
Processing is faster, and fewer rejected claims.
Control, Compliance, and Confidence
Each claim is digitally tracked with full transparency from creation to settlement. Teams and consultants collaborate in a central repository containing version control, audit trails, and automated status notifications.
Impact:
No blind spots or lost documents.
Stronger compliance confidence.
Instant access to claims data for audits or internal review.
Key Capabilities of COVORO’s Brand Rate Duty Drawback Refund Automation
1. Auto-Mapping of Bills of Entry and Consumption
- Feature: AI recognizes connections between Bills of Entry, BoMs, and usage records.
- Advantage: No more costs associated with manual entry, errors, or duplicates.
- Benefit: Claims are filed up to 5X faster, with 100% accuracy.
2. Intelligent Duty Rate and Eligibility Validation
- Feature: A built-in verification engine checks Brand Rate eligibility and duty structure.
- Advantage: Flags inconsistencies before filing to ensure only accurate claims are filed.
- Benefit: 90% fewer rejections and faster refunds.
3. Centralized Claim Repository
- Feature: One digital repository for all claim documentation with access controls and audit trails.
- Advantage: Makes document review, collaboration, and audit-readiness easier.
- Benefit: Complete visibility and control of claims by the team and consultants.
4. Automated Filing & Real-Time Tracking
- Feature: One-click filing with documents connected to customs and internal workflow.
- Advantage: Claims are traceable in real time with automatic status updates.
- Benefit: Faster settlements with no follow-up stress.
5. Analytics & Intelligence Dashboard
- Feature: Built-in analytics on claim cycles, time to process, and refunds issued.
- Advantage: Instantly identify delays, leakages, or inefficiencies.
- Benefit: Data-driven visibility that enhances the efficiency of processes and compliance.
The Strategic Payoff: From Compliance to Competitiveness
Strategic Lever | Impact | Business Value |
|---|---|---|
Faster Claim Cycles | From 121 days to 10 days | ₹72 lakh saved annually in interest costs |
Accuracy & Efficiency | 90% less rework | Fewer consultant dependencies |
Compliance Confidence | Centralized records, audit-ready claims | Zero rejections or missed entitlements |
Working Capital Optimization | Quicker refunds | Improved liquidity and reinvestment capacity |
Beyond Drawback: Part of an Integrated EXIM Ecosystem
The COVORO platform is designed for the entire EXIM value chain, linking documentation, licenses, incentives, and compliance within one AI-driven ecosystem.
Powered by Agentic AI
COVORO's Agentic AI ensures accuracy and flexibility across all modules, including:
Data digitalization: All documents, such as invoices and shipping bills, are digitized in a matter of minutes.
Licensing and tracking: Real-time monitoring of compliance with AA and EPCG schemes.
Certificates: Automated eBRC and Certificate of Origin.
Incentives and schemes: Automated claim management for RODTEP, ROSCTL, MOOWR, IGCR, and SEZ.
In summary: a connected, compliant EXIM ecosystem where all refunds, licenses, and incentives are satisfactory, automated, and accurate.
The Bigger Picture: Automation as a Liquidity Multiplier
Brand Rate Duty Drawback Refund Automation isn’t just about faster claims; it’s really about changing how exporters manage their liquidity.
In a competitive global environment, exporters cannot afford the month-long delays associated with processing refunds or the inefficiencies of manual processes. Automation allows them to regain control, velocity, and transparency while reducing costs and liberating working capital.
COVORO enables exporters to transition from manual compliance to strategic liquidity optimization, thereby transforming their approach to executing global operations.
Ready to Simplify Your Brand Rate Duty Drawback Refunds?
Manual systems slow down refunds, make mistakes, and block liquidity. With COVORO's Brand Rate Duty Drawback Refund Automation, you can easily make claims, expedite refunds, and strengthen compliance from one integrated platform.
Book a demo today and discover how automation can enhance your refunds and give you a competitive advantage.