Duty drawback is

• A. A mechanism to reclaim duties paid on imported goods that are subsequently exported or destroyed under customs rules
• B. A penalty for misdeclaration
• C. A suspension of duties on all goods
• D. A refund for duties charged on export shipments

Answer: (A)

Duty drawback is the mechanism that lets a person recover the duties paid on imported goods that are later exported or destroyed under customs supervision. The idea is that if the product leaves the country or is removed from domestic commerce, the duties collected at import shouldn’t stay with those activities. It can be a refund or credit against the duties paid on import. This isn’t a penalty for misdeclaration, nor a blanket suspension of duties, and it isn’t a refund of duties charged on exports (since duties are paid on import, not export).