Duty Drawback

"Duty Drawback" refers to a customs and trade practice where a government refunds or exempts the customs duties or taxes that were originally collected on imported goods when those goods are subsequently exported or used in the production of exported goods. In other words, if a company imports raw materials, pays customs duties on those materials, and then uses them to manufacture products that are later exported, the government may provide a refund or drawback of the duties initially paid. This is done to promote and support international trade, encourage domestic production for export, and reduce the overall cost burden on businesses involved in global commerce.