GlossaryEN1 min readUpdated: Jun 22, 2026

Duty Drawback

Duty drawback is the full or partial refund of import duties paid on goods that are subsequently exported, processed and then exported, or destroyed under customs supervision.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Duty_drawback

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Logistics Concept

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Definition & Explanation

Duty drawback is the full or partial refund of import duties paid on goods that are subsequently exported, processed and then exported, or destroyed under customs supervision. The mechanism eliminates a structural disadvantage for exporters: companies that transform imported inputs into finished goods for foreign markets should not permanently absorb duty costs on materials never destined for domestic use. Claims require documented proof of duties paid and a demonstrable link – both factual and chronological – between the import and the qualifying export or processing event. Duty drawback is distinct from inward processing relief, where duties are suspended upfront rather than recovered after the fact; this makes drawback the more practical option for companies that cannot predict export volumes at the time of importation.

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Duty Drawback

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