Drawback, in law in commerce, paying back a duty previously paid on exporting excisable articles or on re-exporting foreign goods. The object of a drawback is to let commodities which are subject to taxation be exported and sold in a foreign country on the same terms as goods from countries where they are untaxed. It differs from a bounty in that a bounty lets commodities be sold abroad at less than their cost price; it may occur, however, under certain conditions that giving a drawback has an effect equivalent to that of a bounty, as in the case of the so-called sugar bounties in Germany (see sugar). The earlier tariffs contained elaborate tables of the drawbacks allowed on exporting or re-exporting commodities, but so far as the United Kingdom is concerned (as of 1911) the system of bonded warehouses practically abolished drawbacks, as commodities can be warehoused (placed in bond) until needed for exportation.
In the United States, drawback is a U.S. law that allows exporters to recover duty paid for importations provided that the product is subsequently exported. It is considered a Customs privileged program. It is a cumbersome, time staking process that requires proof of exportation, and an impeccable audit trail to the original importation. Further, a Foreign-Trade Zone may be used to either expedite or avoid the drawback process. A Foreign-Trade Zone Admission in Zone Restricted status is considered the legal equivalent to an exportation in the eyes of the U.S. Customs & Border Protection.
Wikimedia Foundation. 2010.
Look at other dictionaries:
drawback — [ drobak ] n. m. • 1755; mot angl. « remise », de to draw « tirer » ♦ Anglic. Comm. internat. Remboursement des droits ou taxes de douane payés lors de l entrée (⇒ importation) de marchandises, lorsqu elles ont servi à fabriquer des produits qui… … Encyclopédie Universelle
Drawback — Draw back , n. 1. A loss of advantage, or deduction from profit, value, success, etc.; a discouragement or hindrance; objectionable feature. [1913 Webster] The avarice of Henry VII . . . . must be deemed a drawback from the wisdom ascribed to him … The Collaborative International Dictionary of English
Drawback — (engl., spr. Drabäck), 1) Rückzoll, Zollvergütung, welche in England bei großem Export für gewisse Artikel gewährt wird; 2) Zahlungsnachlaß … Pierer's Universal-Lexikon
Drawback — (engl., spr. draobäck), Rückzoll, die Rückvergütung, die bei der Wiederausfuhr verzollter Waren entrichtet wird, im weitern Sinn jede Ausfuhrvergütung, wird gewährt bei der Ausfuhr von bereits durch innere Steuern getroffenen Waren oder von… … Meyers Großes Konversations-Lexikon
Drawback — (engl., spr. drahbäck), Rückzoll, Ausfuhrvergütung … Kleines Konversations-Lexikon
Drawback — (Drahbäck), engl., Rückzoll, Ausfuhrvergütung; Nachlaß bei Baarzahlung … Herders Conversations-Lexikon
drawback — I noun damage, decremental, defect, disadvantage, discount, fault, flaw, harm, hurt, impediment, inconvenience, injury, liability, objection, obstacle, prejudice, protest, protestation, qualification, set off II index burden, check (bar), defect … Law dictionary
drawback — hindrance, disadvantage, 1720, from DRAW (Cf. draw) (v.) + BACK (Cf. back) (adv.). The notion is of something that holds back success or activity … Etymology dictionary
drawback — *disadvantage, detriment, handicap Analogous words: *evil, ill: inconvenience, trouble (see INCONVENIENCE): obstruction, hindrance (see corresponding verbs at HINDER) … New Dictionary of Synonyms
drawback — [n] disadvantage check, defect, deficiency, detriment, difficulty, disability, evil, failing, fault, flaw, fly in the ointment*, handicap, hindrance, hitch, ill, impediment, imperfection, inconvenience, lack, nuisance, obstacle, shortcoming, snag … New thesaurus
drawback — ► NOUN ▪ a disadvantage or problem … English terms dictionary