New
Garment Costing Calculator
Full garment cost sheet — fabric, trims, CM, overhead and profit.
CostNest Calculator
Duty Drawback & Refund Calculator
Estimate customs duty refunds and cash incentives for export garments. Supports both Bangladesh NBR Flat Rate Incentives and Actual Duty Drawback schemes (DEDO). No account needed — numbers update as you type.
Duty drawback schemes help exporters recover import duties paid on raw materials (like fabric, yarn, and accessories) used in manufacturing exported apparel. Timely filing prevents working capital blockages.
Step By Step
How to Use This Calculator
6 steps
- Select the currency code ($ for USD or ৳ for BDT).
- Enter the Total FOB Export Value of the shipment as declared on the Bill of Export.
- Choose the Drawback Scheme: Flat Rate (standard percentage incentive) or Actual Duty (refunding paid customs duties based on material consumption).
- For Flat Rate Scheme: Set the drawback rate percentage (the default for general apparel is typically 1.5% to 4.0%).
- For Actual Duty Scheme: Enter the total import duties paid at the port of entry and the average manufacturing wastage rate (scrap %).
- Review the calculated Refundable Drawback Amount and the Net Exporter Benefit summary.
Worked Example
Worked Example: Knitwear Shipment under NBR Flat Rate
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1Total Export Shipment FOB Value: $85,000
- 2Drawback Option: Flat Rate Scheme
- 3Approved Drawback Rate: 1.5%
- 4Calculation: Refund Amount = $85,000 × (1.5 / 100) = $1,275
- 5Under Actual Duty Paid (Alternative): If import duty paid was $5,000 and fabric wastage rate was 8%, the refundable drawback would be $5,000 × (1 - 0.08) = $4,600.
Final Result
Flat Rate Drawback refund check = $1,275. Actual Duty Drawback refund = $4,600.
Methodology
Customs Duty Drawback & Refund Formulas
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
1. Flat Rate Drawback Scheme: · Refundable Drawback = FOB Export Value × (Flat Drawback Rate / 100)
2. Actual Duty Paid Scheme (DEDO): · Net Material Consumption Rate = 1 - (Wastage Rate % / 100) · Refundable Drawback = Import Duty Paid × Net Material Consumption Rate
Note: The actual scheme assumes imported inputs match the quantities declared in the Bill of Export. Excess wastage above the approved standard limits is non-refundable.
Practical Guidance
Senior Merchandiser Tips for Securing Drawbacks
- 1Ensure that the HS codes on your import Bill of Entry match the HS codes on the final export Bill of Export perfectly to avoid automated system rejections.
- 2Keep detailed track of fabric and accessories wastage logs. Standard NBR wastage charts allow 8% to 15% wastage depending on styling; exceeding this requires prior approval.
- 3File your duty drawback claim within 180 days from the date of foreign currency realization as mandated by DEDO guidelines.
- 4Exporters sourcing materials locally from export-oriented spinning mills can claim cash incentives in lieu of duty drawback by showing local back-to-back L/C documents.
- 5Perform regular internal audits comparing import volume ledger indexes with export shipping manifests to identify unclaimed drawbacks before they expire.
Frequently Asked Questions
What is the role of DEDO in Bangladesh?+
DEDO (Duty Exemption and Drawback Office) is a specialized division under the National Board of Revenue (NBR). It is responsible for assessing, auditing, and processing import duty refunds and issuing duty exemption certificates (bond licenses) to export-oriented manufacturing units.
What is the difference between Flat Rate and Actual Duty drawback?+
The Flat Rate scheme provides a fixed percentage cash refund based on the total FOB export value (e.g., 1.5%), requiring minimal import documentation. The Actual Duty scheme refunds the exact customs duty paid on imported raw materials, adjusting for fabric/material wastage. While actual drawback yields higher refunds, it requires intensive auditing and documentation.
Can standard bonded warehouse factories claim duty drawbacks?+
Bonded warehouse factories import raw materials duty-free under bond licenses, so they do not pay customs duties at import. Consequently, they cannot claim actual duty drawbacks. However, they may be eligible for specific cash incentives depending on the sourcing of local inputs.
What documents are required to submit a DEDO actual drawback claim?+
Key documentation includes: Import Bill of Entry, Port Delivery Challan, Treasury Challan (proving duty payment), export L/C or Contract, Bill of Lading/Airway Bill, Bill of Export, and the Bank Realization Certificate (BRC) verifying foreign currency realization.
How long does it take to process a duty drawback in Bangladesh?+
Under NBR charter rules, flat-rate drawback claims are typically processed within 45 to 60 days of submission. Actual duty drawback assessments involving DEDO physical audits of utilization ratios can take between 90 days and 6 months depending on audit backlogs.
What happens if HS codes differ between import and export documents?+
If HS codes do not align, customs auditors will flag the transaction for potential input-output mismatch. In such cases, exporters must submit a technical specification sheet certified by BGMEA/BKMEA to prove that the imported material was indeed used in the final exported garment.