Transportation
Duty Drawback
Refund of customs duties paid on imported goods that are subsequently exported.
D
Updated 2025-10-01
Definition
Duty drawback allows importers to recover taxes or tariffs paid when goods are returned, re-exported, or destroyed.
Overview
Overview
This system incentivizes international trade by reducing costs for businesses that export imported goods.
Benefits
- Lowers overall import/export costs
- Encourages export activities
- Improves cash flow for exporters
Example
A company imports raw materials, manufactures products, and exports them; it claims duty drawback for the imported materials.
Tags
#Duty Drawback#Customs#Export#Refund
Related Terms
Customs Duty
Export License
Customs Bonding
