GlossaryEN1 min readUpdated: Jun 12, 2026

Duty drawback / Refund of charges

After paying import duties on raw materials, a processor re-exports the finished goods and claims back the duty paid – that reimbursement is duty drawback.

Last updated: 12 June 2026Published: 27 January 2026

Source: https://www.wcoomd.org/en/topics/facilitating-trade-digital-trade/duty-drawback.aspx

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After paying import duties on raw materials, a processor re-exports the finished goods and claims back the duty paid – that reimbursement is duty drawback. This customs mechanism refunds duties, taxes, or charges paid on goods when they are re-exported or placed under a preferential customs procedure such as inward processing. The entitlement arises only if the applicable customs code or trade agreement explicitly permits it. It is commonly used to ease the tax burden on manufacturers who import inputs and export finished products, improving their competitive position.

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Duty drawback / Refund of charges

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Related Terms

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Import Tax Refund Mechanisms

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