Glossary Term
Duty drawback
Duty drawback is a customs program that allows importers to recover duties, taxes, and fees paid on imported goods that are subsequently exported or used in products that are exported. For example, if an importer paid $10,000 in duties on components that are later incorporated into finished goods exported abroad, they can claim a drawback to recover some or all of those duties subject to documentation and eligibility rules. This reduces the tariff burden on goods not consumed domestically.