Drawback Rule 16A provides for recovery of drawback where export sale proceeds are not realised within the stipulated time i.e. 180 days from the date of export and extension if any granted. Where a part of the sale proceeds is relaised, the recovery of drawback shall be of the amount equal to that portion of the amount of drawback paid which bears the same proportion as the portion of the sale proceeds not realised bears to the total amount of sale proceeds.

If the exporter shows evidence of realisation of proceeds against which recovery of drawback was made within one year from the date of such recovery, the amount of drawback so recovered shall be repaid.