Sourcing glossary
Duty drawback
Also known as: drawback, customs drawback, 관세환급
A refund of import duties, taxes or fees paid on imported goods when those goods, or goods made from them, are later exported or destroyed.
In the US, CBP administers drawback under 19 U.S.C. 1313. Under the TFTEA rules, most claims refund up to 99% of the duties, taxes and fees paid and must be filed within five years of the import date. It is mainly useful for importers who re-export Chinese goods, return unsold stock abroad or use Chinese components in exported products.
Drawback depends on records: keep entry numbers, invoices and export proof that link each exported unit to the original import. Other countries run their own refund schemes with different rules. See how to calculate landed cost.
Related terms
Part of Tariffs & Compliance.