Duty Drawback
Turn Duty Drawback Refunds into a Liquidity Advantage.
Free working capital faster with AI-powered claims processing that’s accurate, compliant, and built for exporters’ growth.
Customers served! ₹ 15000 CR in duty drawback refunds went unclaimed by Indian exporters in FY 2021–22, with nearly 33% of shipping bills never filed under duty drawback.(Source- CBIC+COVORO Analysis)
Why Does it Happen?
- Delays stretching refund cycles to 121+ days
- Manual errors in BoM/BoE mapping
- Missing documents and rework
- Lack of visibility and poor collaboration
Impact: Exporters not only lose refunds but also pay the price in higher interest costs, reduced liquidity, and missed growth opportunities.
The Hidden Bottlenecks in Duty Drawback Claims Processing
Duty drawback refunds are meant to provide exporters with timely liquidity and sharpen their competitive edge. Yet the reality is far from this promise. Complexity, manual effort, and inefficiency turn what should be a financial advantage into a working capital burden.
Delays That Drain Liquidity
Filing and processing a claim can stretch to 121 days, leaving crores of rupees tied up. For many exporters, this means financing their own refunds — bearing interest costs while capital remains locked.
Impact: On average, exporters lose ₹72 lakh annually in interest costs (assuming ₹20 crore in annual claims at 8.5% interest).
Complex, Error-Prone Processes
Duty drawback filing involves mapping consumption to BoMs, identifying BoEs, and matching rates against Brand Rate Duty Drawback. Missing documents or mismatched quantities trigger rework and recalculations, dragging the process out further.
Impact: Each error increases reworking time, adds consultant delays, and slows access to legitimate refunds.
Limited Visibility and Collaboration
Manual files, fragmented communication, and no audit trail make it hard for teams to track claim status or resolve disputes. Without analytics or reporting, exporters operate blind to where claims stall or leak value.
Impact: Businesses not only face compliance risks but also leave significant refunds unclaimed — in FY 2021–22 alone, ₹15,946 crore went unclaimed, with 33% of shipping bills not filed under duty drawback (CBIC + GSTHero analysis).
The Bigger Picture:
Instead of accelerating growth, the current duty drawback process locks working capital, inflates financing costs, and erodes global competitiveness — leaving exporters at a disadvantage in international markets.
Reimagining Duty Drawback Claims with Intelligent Automation
Duty drawback doesn’t have to be a 121-day waiting game. With automation, the process shifts from a compliance burden into a strategic driver of liquidity and profitability.
Liquidity in Days, Not Months
What once took 121 days per claim can now be completed in just 10 days. Every BoE is auto-mapped, consumption linked to BoM, and duty matched against rates without manual delays.
Impact: Working capital is released quickly, reducing annual interest costs from ₹72 lakh to under ₹5 lakh — capital that can be reinvested into growth.
Accuracy That Eliminates Rework
AI-driven mapping and automated calculations prevent errors that used to force weeks of re-computation. Missing BoEs are identified instantly, and eligibility checks are built-in.
Impact: Consultant review time drops from 8 days to just 1, unlocking a 90% efficiency improvement and allowing teams to focus on higher-value tasks.
Control, Compliance, and Confidence
Every claim is tracked end-to-end with full audit trails, centralized storage, and real-time collaboration for teams and consultants.
Impact: Exporters gain visibility, compliance readiness, and faster refunds — with no risk of unclaimed entitlements.
The Bigger Picture:
Automation turns duty drawback claims into a profitability lever. With 70% time savings, 50% lower interest costs, and 4x ROI, exporters can move from firefighting delays to driving competitiveness in global markets.
Key Capabilities of Automated Duty Drawback Claims
1. Auto-Mapping of BoEs and Consumption
Feature: AI automatically maps Bills of Entry to consumption and Bill of Materials.
Advantage: Removes manual effort, duplication, and errors.
Benefit: Claims are prepared with 100% accuracy, avoiding costly rework and consultant delays.
2. Intelligent Rate and Eligibility Checks
Feature: Built-in validation against All Industry Rates and scheme eligibility.
Advantage: Errors are flagged upfront, before filing.
Benefit: 90% fewer rejections and faster refunds, safeguarding working capital cycles.
3. Centralized Claim Repository
Feature: A single digital repository with version control, audit trails, and access for teams & consultants.
Advantage: Eliminates fragmented files and poor collaboration.
Benefit: Full traceability and compliance confidence, ready for audits anytime.
4. Automated Filing & Tracking
Feature: One-click filing and real-time claim tracking with status updates.
Advantage: No more blind spots or manual follow-ups.
Benefit: Faster settlements and reduced receivable delays, improving liquidity.
5. Analytics & Insights Dashboard
Feature: Built-in reporting and performance analytics on claim cycles, rejections, and refund timelines.
Advantage: Provides visibility into leakages and efficiency.
Benefit: Data-driven decisions that maximize entitlements and strengthen competitiveness.
Why Leading Exporters Choose Automation
1. Liquidity Unlocked
Claim cycles shrink from 121 days to 10 days, releasing refunds when businesses need them most.
Value: Saves up to ₹72 lakh annually in interest costs, strengthening cash flow.
2. Accuracy Without Rework
AI-driven checks eliminate manual errors, ensuring every claim is 100% accurate and audit-ready.
Value: 90% efficiency gains and fewer rejections, reducing consultant dependence.
3. Compliance with Confidence
End-to-end traceability, centralized records, and real-time tracking provide total visibility.
Value: Stronger governance, fewer disputes, and resilience against compliance risks.
End-to-End EXIM Ecosystem – Powered by Agentic AI
AI-Driven Data Digitization
From invoices, packing lists, and certificates of origin to Bills of Entry and Shipping Bills, every document is digitized with accuracy and speed.
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License & Tracking
Continuous monitoring of Advance Authorization (AA), EPCG, and other licenses for compliance confidence.
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Certificates
eBRC and Certificates of Origin made seamless and error-free.
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Incentives & Schemes
Automated claim management for RODTEP, ROSCTL, MOOWR, IGCR-EOU/DTA, and SEZ ensures exporters never miss out on entitlements.
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Claims Automation
Faster DBK (Duty Drawback) claims — both brand rate and all-industry rate.
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Intelligence Layer
Built-in analytics and reporting provide visibility, compliance readiness, and actionable insights.
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Ready to Unlock Faster Refunds & Stronger Cash Flow?
Duty drawback refunds don’t have to be slow, error-prone, or cash-draining. With COVORO’s AI-powered automation, exporters can turn compliance into a liquidity advantage — releasing working capital in days, not months.
Take the first step toward effortless compliance and smarter liquidity management today.
Covoro is a multi-award winning trademark of Perennial Systems, with presence in Malaysia, India, Singapore, UAE and USA. Covoro provides an ecosystem of compliance and finance solutions that are integration ready with over 100 ERPs. Currently Covoro process over 135 million e-invoices each year for more than 10,000 companies globally.
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