HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
drawback
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A quick definition of drawback:
Drawback is a type of refund that the government gives to people who import products into a country and then export them again instead of selling them in the country. This refund is given on the import duties that were paid when the products were brought into the country.
A more thorough explanation:
Definition: A drawback is a refund or allowance given by the government on import duties when the importer reexports the imported products instead of selling them domestically. This means that the importer can get some money back from the government for the duties they paid when they imported the products.
Example: Let's say a company in the United States imports 100 widgets from China and pays $500 in import duties. If the company then reexports 50 of those widgets to Canada, they can apply for a drawback and get a refund on the duties they paid for those 50 widgets.
Explanation: In this example, the company can get a drawback on the import duties they paid for the 50 widgets they reexported to Canada. This means they can get some of their money back from the government, which can help reduce their costs and make their business more profitable.