As old as the hills. DBK: A Time-Tested Incentive for Exporters. Drawback was established in 1789 in order to promote exports and manufacturing within the U.S. market. Claimants can recover the duties, taxes and fees paid on the imported merchandise

Essentially, duty drawback serves as a post-export reimbursement of duties on inputs used in export products. Many governments, especially those in highly protected economies, implement this scheme to refund customs duties, service taxes, and excise duties incurred during production. By doing so, they help exporters maintain price competitiveness in global markets.

Beyond promoting exports, duty drawback also plays a strategic role in shielding domestic markets from foreign goods by maintaining high import duties. This twofold approach—supporting domestic producers while discouraging excessive reliance on imports—reinforces economic self-sufficiency.

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