A drawback, on the other hand, is a refund of customs duties, fees, and taxes that were paid on imported goods that are subsequently destroyed or used in the production of goods that are not exported. The purpose of a drawback is to provide relief to companies that have paid customs duties on goods that were not ultimately sold or used for their intended purpose. For example, if a company imports raw materials to manufacture goods that are intended for the domestic market but are later destroyed or used in a manner that does not result in a sale, it may be eligible for a drawback of the customs duties and taxes paid on those materials.

Both refunds and drawbacks can provide significant cost savings to companies engaged in international trade. However, the process of obtaining a refund or drawback can be complex and time-consuming. This is why seeking the assistance of D. Liebenberg Consulting will help clients to navigate the relevant regulations and procedures without wasting large amounts of time.