What is Drawback in Foreign Trade?
The Drawback regime allows for the exemption or suspension of taxes on the import of inputs for exported products.
Full explanation
Drawback is a tax incentive that aims to make Brazilian exports more competitive. It works by allowing companies to import or acquire national inputs without paying taxes, as long as these inputs are used in the manufacture of products destined for export.
Practical example
A Brazilian company that manufactures agricultural machinery can import engines without paying tax, as long as these machines are exported to other countries within a set timeframe.
Related terms
Frequently asked questions
Who can use Drawback?
Exporting companies legally established in Brazil that can prove their technical and financial capacity.
What are the types of Drawback?
Exemption, suspension and refund.
Do you have any doubts or want to know how to use Drawback in your operation?
Talk to an Afianci expert