Special Additional Duty (SAD Refund)

In exercise of the powers conferred by the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby Exempts the goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for subsequent sale, from the whole of the Additional Duty of customs livable thereon under sub-section (5) of section 3 of the said Customs Tariff Act (hereinafter referred to as the said additional duty).

CUSTOMS CIRCULAR NO: 102 /2007 DATED 14.09.2007

As amended by notification no: 93/2008-customs, dated 01.08.2008. As per the said notification the goods falling within the first schedule to the Customs Tariff Act, 1975, ( 51 of 1975), when imported in to India for subsequent sale, are exempted from whole of the Additional duty of customs leviable thereon under sub section (5) of sec-3 of the said Customs Tariff Act, subject to fulfillment of conditions stipulated therein.


The exemption contained in this notification shall be given effect if the following conditions are fulfilled.

  • The importer of the said goods shall pay all the duties, including said Additional duty of customs leviable thereon as applicable at the time of importation of the subject goods.
  • The importer, while issuing the invoice for sale of goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub section(5) of Sec3 of the Customs Tariff Act, 1975, shall be admissible.
  • The importer shall file a claim for the refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer before the expiry of one year from the date of payment of the said Additional Duty of Customs, with the customs office from where the imported goods are cleared.
  • The importer shall pay on the sale of the said goods, the appropriate sales tax /or value added tax, as the case may be.

In terms of Special Additional Duty (SAD) Refund under notification No.102/2007 Dt 14/9/2007 as amended by notification No: 93/2008 DT 01.08.2008, read with Board Circular No:6/2008 – Customs 28.04.08, 16/2008- Customs 13.10.2008 and 18/2010, by submitting the following documents requirements:-

  • Form Number 102.
  • Certificate from Statutory Auditor / Chartered Accountant for unjust enrichment fulfillment.
  • Co-relation certificate of materials s ales Accounts.
  • Self Declaration/Undertaking.
  • Bill of Entry – Original (Duplicate Copy for importers).
  • Copy of Bill of Lading
  • Copies of VAT payment challans / returns evidencing payment of appropriate sales tax in respect of sale of imported goods covered under the above Bills of Entry
  • Duty payment Proof – TR6 Challans Original / Copy DEPB Scrips.
  • Packing List.
  • Copy of Import invoices/Commercial Invoices of sales of the imported goods in respect of which refund of the 4% Additional duty of customs is claimed.
  • Sales Invoice Photocopy and Original and Sales Summery.
  • Ledger certificate.
  • Covering Letter In the favor of Assistant. Comm.
  • Balance sheet.

Special Additional Duty (SAD) refund which are available to traders of importable items as per under notification No.102/2007 Dt 14/9/2007.

  • FOR MANUFACTURING UNITS: All type of raw materials & machinery, under DFI, EPCG, EOU, STP Units, advance licenses, re-import & exports.
  • RAW MATERIALS: Garment accessory, wood logs, polyester yarn.
  • BUILDING MATERIALS: Tiles, marble, wire mash, sanitary goods, glass sheets, sanitary-were, plywood & veneer board, wooden flooring, steam room.
  • HOUSEHOLD GOODS: Gift Items, blanket & prayer mats, mattresses, furniture, bed sheets, toasters, gas hobs, glassware.
  • FABRIC: Carpet, silk, suiting & shirting, Bonded, coated PU & PVC, flex, non-woven’s & Interlinings, knitted, flock. fur, cotton fusible.
  • PAPER : Stock lots, cardboard, Printing paper, art & craft, board, news prints, release paper, carbonless paper.
  • AUTOMOBILES : Clutch, bearings, steel bolls, plugs, motorcycle chains, wind glass, bumper, alloy wheels, seat cover.
  • WEARABLES : Shoes, socks, jackets, blazers, trousers, baby, products, belts, jeans pent, shirt.
  • PLASTICS & RUBBER: Articles, EVA, pet chips, PVC resin, flex, front-lit, foam, acrylic sheet, LLDEP, PVC sheet, synthetic rubber.
  • EATABLE : Wine & whiskey, Vegetable oil, confectionery, items, Juices, dry fruit, grain & spices, fresh Fruits, dairy products, seeds.
What A R P A N & Associates LLP Offers

We offer our clients with Additional Duty Refunds that includes filing of documents that are required to be checked for internal consistency purposes and inter-correlation activities to make sets of claims. The criteria of filing claimed bills are on entry basis and monthly basis. This requires sumptuous understanding of commercial and taxation aspects of the supply chain with proper analysis of documents. Our Marketing Team is quite Talented and well versed in handling SAD Refund from Sea & Air. Our professionals assist in the following ways:

  • Preparation and filing of claims at various customs
  • Following up with the respective authorities
  • Appearing in personal hearing whenever required
  • Answering to all queries when required
  • Understanding the company’s business, type of imports and the subsequent sales
  • Advice on the data requirements on +payments of SAD and VAT
  • Identifying relevant documents and information
  • Advice on compiling and correlation documents and information.

Additional Duty refund or contract for our services write mail to mail@ayadav.in

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