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Encyclopedia Britannica



DRAWBACK

This article appears in Volume V08, Page 552 of the Encyclopedia Britannica.

Encyclopedia Britannica - Main :: DIO-DRO
DRAWBACK , in commerce, the paying back of a duty previously paid upon the exportation of excisable articles or upon the re-exportation of
foreign
  goods. The
object
  of a drawback is to enable commodities which are subject to
taxation
  to 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 the latter enables commodities to be sold abroad at less than their cost price; it may occur, however, under certain conditions that the giving of 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 the exportation or re-exportation of commodities, but so far as the United Kingdom is concerned the
system
  of " bonded warehouses " practically abolished drawbacks, as commodities can be warehoused (placed " in bond ") until required for subsequent exportation.


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