GlossaryEN1 min readUpdated: Jun 26, 2026
Duty drawback / Refund of charges
A manufacturer imports raw materials, pays duties and import taxes on entry, then exports the finished product shortly afterwards – duty drawback returns all or part of those payments.
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Source: https://www.wcoomd.org/en/topics/facilitating-trade-digital-trade/duty-drawback.aspx
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Definition & Explanation
A manufacturer imports raw materials, pays duties and import taxes on entry, then exports the finished product shortly afterwards – duty drawback returns all or part of those payments. The mechanism is available only where the applicable customs legislation or a free trade agreement explicitly provides for it. The most common scenarios are inward processing relief, where imported inputs are transformed domestically before re-export, and the direct re-export of goods in an unaltered state. Claims must be filed within the prescribed deadline and backed by documentary evidence that links the imported materials to the exported product – typically import declarations, proof of payment, and export records. Duty drawback differs from suspension regimes such as bonded warehousing or customs warehousing, where duties are deferred rather than refunded.
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