WHAT IS DUTY DRAWBACK?

a. This is a refund on import duties after the importer re exports previously imported products (Same-state Drawback)

b. It is also a refund of import duties paid on imported raw materials used in the production of finished goods and exported (Material Drawback).

If both imported inputs and domestic inputs of the same, kind and quality are used to manufacture goods, which are exported, then drawback of the duty which was paid on the imported inputs is payable on the exports. It is immaterial whether the actual imported input or the domestic input of the same kind and quality was used in the exported article.