Which of the following allows an exporter to be refunded up to 99 percent of duties paid on imported goods when they are incorporated in articles that are subsequently exported within five years of the importation?
A) Foreign sourcing
B) Skimming
C) Duty drawbacks
D) Forfaiting

Question

Quizplus · Accepted Answer

Duty drawbacks allow an exporter to be refunded up to 99 percent of duties paid on imported goods when they are incorporated in articles that are subsequently exported within five years of the importation. Foreign sourcing refers to the practice of obtaining materials, products, or services from foreign countries. Skimming is the pricing strategy whereby a company charges a high price for its product or service at launch and then lowers the price over time. Forfaiting is a financing technique used in international trade to eliminate risks involved in credit transactions.

Which of the Following Allows an Exporter to Be Refunded