The Central Board of Indirect Taxes and Customs (CBIC) on July 04, 2026, issued a circular regarding the Deficiency Memo under Section 74 of the Customs Act, 1962.
The following has been stated:-
•References to Audit Para 7.1 of Audit Report 33 of 2025, noting that there was previously no prescribed form for a Deficiency Memo regarding duty drawback claims under Section 74.
•In response, the Board examined the matter in consultation with various field formations to standardize the process.
•Jurisdictions are instructed to direct their field formations to issue Deficiency Memos using the newly standardized format provided in Annexure-I.
•Finally, the circular requests that any practical difficulties encountered in implementing this format be brought to the Board's attention.
[Circular No.: 31/2026-Customs]
