What is an example of Duty Drawback?

A furniture factory imports wood paying 10% duty and claims drawback when exporting finished furniture to the U.S.

Tariffs

Duty Drawback

Also known as: Tariff refund, Import duty drawback

A mechanism for total or partial refund of tariffs and taxes paid on imported inputs that were incorporated into products subsequently exported.

What is Duty Drawback?

Duty drawback is an export promotion mechanism that allows exporters to claim refunds of tariffs and taxes paid when importing inputs, raw materials, or components incorporated into exported products. This instrument avoids double taxation and improves the competitiveness of domestic products in international markets. In Mexico, it is processed through SAT by presenting evidence of the original import and the export of the finished product.

Refund of tariffs paid on importation
Applies when inputs are exported as transformed goods
Promotes export competitiveness
Filed with SAT with documentary evidence

Examples

A furniture factory imports wood paying 10% duty and claims drawback when exporting finished furniture to the U.S.
A food manufacturer claims refund of import duties on imported packaging used in products exported to Central America.

Related terms

Regulations

Drawback Program

A mechanism for refunding import duties paid on inputs incorporated into products that are subsequently exported, incentivizing manufacturing exports.

Trade

Definitive Export

Customs regime allowing goods to leave the country to remain abroad indefinitely.

Trade

Definitive Import

Customs regime allowing foreign goods to enter and remain indefinitely in the country after payment of all applicable duties and taxes.

Valuation

General Import Tax (IGI)

The main import duty paid when bringing goods into Mexico, determined by the TIGIE tariff classification code.

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