No-drawback rule
Also called: prohibition of drawback · geri ödeme yasağı
A provision in some trade agreements forbidding refund or non-payment of duty on non-originating materials used to make goods that are then exported with preferential origin. Where it applies, inputs cannot benefit from inward processing relief if the end product claims preference.
In practice
Exporters using inward processing must check each agreement, because the rule can make preferential exports more expensive than expected.
EU
Türkiye
UKRelated terms
- Duty drawback
- A refund of duties paid on imported goods that are later exported, either as they are or after use in manufacturing. The US runs a broad drawback…
- Inward processing
- A special procedure allowing non-Union goods to be imported without duty for processing, repair or other operations, with the processed products then…
- Pan-Euro-Mediterranean Convention
- A regional convention that brings together common preferential rules of origin for the EU, EFTA, Türkiye, the Western Balkans, Ukraine, Moldova,…