Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Duty Drawback
Refund of customs duties paid on imported goods that are subsequently exported.
Definition
Duty drawback allows importers to recover taxes or tariffs paid when goods are returned, re-exported, or destroyed.
Overview
This system incentivizes international trade by reducing costs for businesses that export imported goods.
Role
Refund of customs duties paid on imported goods that are subsequently exported.
Focus
This system incentivizes international trade by reducing costs for businesses that export imported goods.
Example
A company imports raw materials, manufactures products, and exports them; it claims duty drawback for the imported materials.
Benefits
- Lowers overall import/export costs
- Encourages export activities
- Improves cash flow for exporters
FAQs
Q: Can you give an example of Duty Drawback?
A: A company imports raw materials, manufactures products, and exports them; it claims duty drawback for the imported materials.
Q: What are the key benefits of Duty Drawback?
A: Lowers overall import/export costs. Encourages export activities. Improves cash flow for exporters.