CBIC Circular 2026: New DBK Value Cap Revision for Engineering Goods

## Key points The Central Board of Indirect Taxes and Customs (CBIC) has released **Circular No. 22/2026-Customs** on 2026-08-10, announcing a critical revision in the **Duty Drawback (DBK)** value caps for the engineering sector. Recognizing the increased cost of imported raw materials, the CBIC has upwardly revised the caps for HSN codes under Chapter 72 and 73. This ensures that exporters are not penalized by outdated refund ceilings when the actual duties paid on inputs are higher. ## What this means for exporters Engineering manufacturers can now claim a higher refund per unit of export, improving cash flow and global price competitiveness. As per the CBIC Circular, the new rates apply to all shipping bills filed on or after August 10, 2026. This is particularly beneficial for SME units who previously hit the low value-caps, leaving a portion of their paid duties unrecovered. **Who should act now:** Exporters of steel components, industrial machinery, and automotive parts should immediately review their pricing models and shipping bill filings. Ensure your DBK claims reflect the updated ceilings to avoid losing out on eligible industrial subsidies. Need help calculating your revised DBK brand rate or filing claims? Reach out to our consultancy team for expert guidance on maximizing your export incentives.