What does the duty drawback program aim to incentivize?

The duty drawback program is specifically designed to incentivize the higher rates of exportation of goods. By allowing exporters to receive refunds on duties, tariffs, and taxes paid on imported materials that are subsequently used in the production of exported products, the program encourages businesses to engage more actively in international trade. This financial incentive reduces the overall cost of production for goods that are sold overseas, thereby making exports more competitive in the global market.

Furthermore, the program promotes the growth of export activities by providing a tangible financial benefit, which can support businesses in expanding their operations internationally. This aligns with strategic objectives of many governments to enhance trade balances and stimulate economic growth through increased exportation.