Which of the following situations best describes when duty drawbacks can be granted?
A) A manufacturer minimally transforms imports, making products that are then exported.
B) A distributor resells imported products.
C) All of the raw materials are imported, a product is created, and then sold domestically.
D) An exported product has significant domestic content.

Question

Quizplus · Accepted Answer

Duty drawbacks are refunds of duties paid on imported materials used in products that are subsequently exported. Option A best describes a situation where duty drawbacks can be granted because the manufacturer is importing materials, transforming them into products, and then exporting them.

Which of the Following Situations Best Describes When Duty Drawbacks