What does the term "Duty Drawback" refer to?

The term "Duty Drawback" refers specifically to a refund of duties that were paid on imported goods when those goods are subsequently exported. This system is designed to encourage international trade by allowing businesses to reclaim some of the costs associated with duties paid on imported items that are not retained in the domestic market. The concept is important because it helps to reduce the overall financial burden on businesses that import goods for eventual export, fostering a more competitive environment.

Under this program, companies must comply with specific regulations and procedures to claim the refund, which can vary by country. The ability to retrieve paid duties can significantly impact the profitability of businesses engaged in importing and exporting activities.