If your company imports raw materials or inputs to manufacture a product that is later exported, Drawback is likely the most relevant regime you are not using yet.
What it is, in practice
Drawback is a special customs regime that relieves the tax burden on production chains for export goods. It suspends, exempts, or refunds federal taxes on imported (or domestically purchased) inputs that become part of a final product that is exported.
The three modalities
- Suspension — taxes are suspended at the time of import, conditional on future proof of export.
- Exemption — used when an import replaces an input already consumed in a prior export, with a direct tax exemption.
- Refund — allows full or partial refund of taxes already paid on imported inputs that make up an exported product.
Who can use it
Any industrial or trading company that imports inputs or components that become part of an exported product can, in principle, apply for the regime. In practice, whether it is worth it depends on volume and the company's tax structure — which is why the feasibility analysis is the first step, not the registration itself.
The real gain
Depending on the product's tax structure, Drawback can meaningfully reduce the cost of imported raw material, which directly affects the competitiveness of the final export price.