A Duty Drawback is a regime that allows a refund of duties to an importer on account of re-exporting the same goods or after processing those goods into finished products for re-export. This system encourages exportation.

Types of Duty Drawbacks:

• Material Duty Drawback
• Same State Duty Drawback

Material Duty Drawback:
It is a refund of duty on materials imported into the country, processed into finished goods for re-export. The duty paid is refunded to the importer as an incentive.
(1.5 marks)
Same State Duty Drawback:
This is a refund of duty on goods imported into the country and re-exported in the same state they were imported. The packaging, contents, and condition remain unchanged.
(1.5 marks)