Drawback
Drawback, in law in commerce, paying back a duty previously paid on exporting excisable articles or on re-exporting foreign goods. The object of a drawback is to let commodities which are subject to taxation 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 a bounty lets commodities be sold abroad at less than their cost price; it may occur, however, under certain conditions that giving 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 exporting or re-exporting commodities, but so far as the United Kingdom is concerned (as of 1911) the system of bonded warehouses practically abolished drawbacks, as commodities can be warehoused (placed in bond) until needed for exportation.
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Famous quotes containing the word drawback:
“Once we have found ourselves, we must understand how from time to time to lose—and then to find—ourselves once again: assuming, that is, that we are thinkers. For a thinker it is a drawback to be bound to a single person all the time.”
—Friedrich Nietzsche (1844–1900)
“One serious drawback about letters is that, in order to get them, one must send some out. When it comes to the mail, I feel it is better to receive than to give.”
—Joseph Epstein (b. 1937)