Duty Drawback is a fiscal measure utilized in international trade to facilitate the recovery of customs duties, specific fees, or certain internal taxes paid on imported goods. This refund mechanism is triggered under particular conditions. Specifically, the refund is granted when the imported items are either re-exported or entirely disposed of and the process of obtaining the refund from customs is contingent upon the official submission of a drawback claim. However, it is vital to note that the submission of such a claim is not permitted prior to the actual date of exportation.
Duty Drawback claims, which significantly reduce import costs, are crucial export incentives with rules varying by jurisdiction. In the US, these claims can be filed within five years from the date of importation. They encompass several types, ordered by prominence: Manufacturing Drawback, Unused Merchandise Drawback, Rejected Merchandise Drawback, and Packaging Material. Special provisions also exist for items like flavoring extracts, medicinal or toilet preparations, and bottled distilled spirits and wines.
