Sections 26 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 26 and 26A are two specific refund routes. Section 26 returns export duty on goods that come back within a year without being resold. Section 26A returns import duty on defective or non-conforming goods that are then exported, abandoned to customs or destroyed within a short window.
This article follows the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check any later Finance Act changes to these sections before acting.
Section 26 refunds export duty if the goods are returned otherwise than by way of re-sale, are re-imported within one year of exportation, and the refund application is made before six months from the date of the clearance order. Section 26A refunds import duty on goods that are defective or not in conformity with agreed specifications, if they are identified, no drawback is claimed and the goods are exported, abandoned to customs or destroyed, with destruction to be within thirty days of the clearance order (extendable by up to three months). The application must be made within six months of the relevant date, and perishable goods are excluded.
Section 26: refund of export duty
Where, on the exportation of any goods, any duty has been paid, that duty shall be refunded to the person by whom or on whose behalf it was paid, if all three conditions hold:
| Clause | Condition |
|---|---|
| (a) | The goods are returned to such person otherwise than by way of re-sale |
| (b) | The goods are re-imported within one year from the date of exportation |
| (c) | An application for refund of such duty is made before the expiry of six months from the date on which the proper officer makes an order for the clearance of the goods |
The word "shall" means the refund follows when the conditions are met. Look at the clocks: the one-year period in (b) runs from the date of exportation, and the six-month period in (c) runs from the date of the order for clearance of the goods, which is a different starting point. A trader who re-imports in month eleven may still have missed the application window in (c). If your goods have come back and you want to check these dates, a legal consultation can help you work out the position.
Section 26A: refund of import duty
Sub-section (1): the conditions
The section applies where, on the importation of any goods capable of being easily identified as such imported goods, duty has been paid on clearance of the goods for home consumption. The duty shall be refunded to the person by whom or on whose behalf it was paid, if:
- (a) the goods are found to be defective or otherwise not in conformity with the specifications agreed upon between the importer and the supplier. The proviso to clause (a) says the goods must not have been worked, repaired or used after importation, except where such use was indispensable to discover the defects or non-conformity;
- (b) the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported;
- (c) the importer does not claim drawback under any other provisions of the Act; and
- (d) one of three things happens: (i) the goods are exported; or (ii) the importer relinquishes his title to the goods and abandons them to customs; or (iii) the goods are destroyed or rendered commercially valueless in the presence of the proper officer, in such manner as may be prescribed and within a period not exceeding thirty days from the date on which the proper officer makes an order for the clearance of the imported goods for home consumption under section 47.
Two provisos follow. The first says the period of thirty days may, on sufficient cause being shown, be extended by the Principal Commissioner of Customs or Commissioner of Customs for a period not exceeding three months. The second says nothing in the section applies to goods regarding which an offence appears to have been committed under the Act or any other law for the time being in force.
The footnotes show that section 26A was inserted by the Finance (No. 2) Act, 2009 (33 of 2009) with effect from 19 August 2009, and that the words "Principal Commissioner of Customs or Commissioner of Customs" were substituted with effect from 6 August 2014.
The section is built to catch genuine returns of defective goods. The words "capable of being easily identified" and clause (b) put the burden on the importer to show that the goods are the ones that were imported. Clause (c) prevents a double benefit, since drawback on the same goods under another provision is excluded. The three limbs of clause (d) give the importer a choice of how to end the matter: send the goods back, abandon them to customs, or destroy them under customs supervision. The thirty-day window in (iii) is stated only for destruction; read the text closely when planning, because the clause is printed in one sentence and the period appears in sub-clause (iii).
Sub-section (2): the application and the relevant date
An application for refund of duty shall be made before the expiry of six months from the relevant date, in such form and manner as may be prescribed. The Explanation says "relevant date" means:
| Case | Relevant date |
|---|---|
| Goods are exported out of India | The date on which the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51 |
| Title to the goods is relinquished | The date of such relinquishment |
| Goods are destroyed or rendered commercially valueless | The date of such destruction or rendering of goods commercially valueless |
Sub-section (3): perishable goods
No refund under sub-section (1) shall be allowed in respect of perishable goods and goods which have exceeded their shelf life or their recommended storage-before-use period. This is a categorical exclusion: it applies even where every condition in sub-section (1) is otherwise met.
Sub-section (4): extra conditions
The Board may, by notification in the Official Gazette, specify any other condition subject to which the refund under sub-section (1) may be allowed. Such further conditions are in notifications and are not in the text consulted.
Section 26A and the general refund provision
Section 26A is a specific route. The general refund claim, with its one-year period and the unjust enrichment rule, is in section 27, which our article on section 27 explains. For the practical side of refunds, see our post on customs refund grounds and the claim process. Where goods return from repair or processing abroad and relief is wanted on the way back in, see our article on sections 25A and 25B.
A worked example with invented names
Maple Electronics Pvt. Ltd. imports a lot of display panels and clears them for home consumption. On receipt, it finds that the panels do not conform to the specifications agreed with the supplier, and no one has used them beyond testing needed to find the defect. Maple identifies the panels to the satisfaction of the Assistant Commissioner, does not claim drawback, and exports the lot back to the supplier. The relevant date is the date of the order permitting clearance and loading for export; Maple applies within six months of it, in the prescribed form and manner. Had Maple instead chosen to destroy the panels, the destruction would have had to take place in the presence of the proper officer within thirty days of the clearance order (extendable by up to three months for sufficient cause). If the panels were perishable, no refund would be allowed under sub-section (3).
Need help with a duty refund?
Refund claims turn on dates and identification. If you have defective or returned goods and want to know whether Section 26 or 26A fits, our legal consultation service can help you map the dates and documents before you apply.
Key takeaways
- Section 26 refunds export duty if goods are returned (not by re-sale), re-imported within one year of exportation, and the application is made before six months from the clearance order.
- Section 26A refunds import duty on defective or non-conforming goods that are identifiable, with no drawback claimed.
- The goods must be exported, abandoned to customs, or destroyed in the presence of the proper officer; the thirty-day period for destruction can be extended by up to three months.
- The application under 26A is due within six months of the relevant date.
- Perishable goods and goods past shelf life are excluded, and goods connected with an apparent offence are outside the section.
Read next
- Section 27: claim for refund of duty and unjust enrichment
- Section 27A: interest on delayed refunds
- Customs Refund: Grounds and Claim Process
- Sections 25A–25B: inward and outward processing of goods
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.