What does the duty drawback program provide for exporters?

The duty drawback program is designed to encourage exports by allowing exporters to reclaim or receive a refund of the import duties paid on materials used to produce exported goods. Under this program, if a company imports components or raw materials and later exports the finished product, it can receive a refund on the duties initially paid for those components. This financial incentive helps reduce the overall cost of exporting and makes products more competitive in the global market.

In the context of this question, the correct answer highlights that exporters can get a refund specifically on import duties for components that have been used in the production of goods intended for export. This is particularly beneficial for businesses that rely on imported materials, as it enhances their cash flow and profitability when participating in international trade.