Which products are eligible for a duty drawback?

The correct response identifies products that are eligible for a duty drawback as those that are imported into the U.S. and then subsequently exported. A duty drawback is a refund of customs duties paid on imported goods that are eventually re-exported. The rationale behind this system is to encourage international trade by reducing the costs associated with the initial importation of goods that do not remain in the U.S. market.

When products are imported and then exported, the duties previously collected can be refunded, making it more financially viable for companies to engage in international commerce. This refund process supports businesses by ensuring they are only taxed for the goods that remain in the United States, thus promoting fairer competition for U.S. exporters.

In contrast, the other options do not fit the criteria for duty drawbacks. Products manufactured in the U.S. generally do not qualify because they have not incurred import duties. Products sold domestically are not eligible for a duty drawback since they do not undergo export. Lastly, products stored in a Free Trade Zone may benefit from certain trade advantages, but they do not automatically qualify for duty drawback unless they are also imported and subsequently exported from the U.S.