Plain meaning
A customs program that can refund certain duties paid on imported goods that are later exported or used in exported goods.
Also called
duty drawback
Key points
- Drawback is generally tied to imported goods that are exported or consumed in producing exported goods.
- Claims require records linking imports, duties paid, production or use, and export.
- Time limits and program conditions apply.
- Drawback is different from tariff remission, although both can reduce customs-duty costs.
Why it comes up
Drawback can reduce costs for manufacturers, exporters, and businesses using imported inputs in export supply chains.