Through foreign sourcing, the exporter may accrue an additional benefit to lower costs. An expert may be refunded up to 99 percent of duties paid on imported goods when they are exported or incorporated in articles that are subsequently exported within five years of the importation. What is this called?
A) Foreign sourcing
B) Zipping imports
C) Duty drawbacks
D) Long term pressure

Question

Quizplus · Accepted Answer

This is called duty drawbacks, which refers to the refund of up to 99 percent of duties paid on imported goods when they are subsequently exported or incorporated in articles that are exported within five years of importation. This can provide an additional benefit to lower costs through foreign sourcing.

Through Foreign Sourcing, the Exporter May Accrue an Additional Benefit