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International Trade vocabulary · Customs and Tariffs

Duty drawback

Meaning in international trade, with examples

nounAdvanced term

In international trade, duty drawback means: A refund of customs duties paid on imported goods or materials when they are later exported, either unchanged or as part of a finished product.

In Turkish: gümrük vergisi iadesi, geri ödeme sistemi

How it is used

Common in US trade and in inward processing systems: the importer first pays the duty and then claims it back after export. It requires records that link each import to an export. Often shortened to 'drawback'.

Example sentences

  1. We claimed duty drawback on the components used in the exported machines.

  2. The duty drawback claim was approved after customs checked our export records.

Common collocations

  • claim duty drawback
  • duty drawback claim
  • eligible for duty drawback
  • duty drawback scheme
  • inward processingA customs procedure that lets a company import materials without paying duties, provided it processes them and exports the finished products.
  • customs dutyThe tax paid to customs on imported goods, calculated from their customs value, their HS code and sometimes their origin.
  • customs declarationThe official form, usually submitted electronically, in which a company tells customs what goods it is importing or exporting, with their value, origin and classification.
  • exportThe sale of goods or services to buyers in another country; also a product that is sold abroad in this way.

More terms: Customs and Tariffs

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