DRAWBACK. A term used to designate the repayment of taxes. Nvhellier import lint it's or internal taxes, upon goods Which are exported. Drawbacks upon goods imported v.hicil are re shipped in the original packages are rendered Unnecessary by the Nvarelmitse system, Which permits the deposit of goods in bond. without payment of taxes until they arc withdrawn either for export or for home ctaistimptitol, ill which latter ease the taxes must be paid. If, however. the imported goods are manufactured before the rci;xportation. drawbacks are neves sary if the payment is to be remitted. lu the ease of goods subject to internal tax the grant ing of drawbacks on the exportation of the goods serves the purpose of freeing the exporting manufacturer front an increased cost of produc tion through taxation, which his competitors do not have tor bear. Great cart' must be exer cised in the mode of assessing the to avoid, on the one hand, taxation, and on the other a bounty upon exportation. If the amount of the drawback is greater than the tax paid, it becomes a direct encouragement to exporta tion, which may not he contemplated by the law.
IL is in this way that the so-called sugar boun ties in Certnany and some other Continental countries arose.
In the I'nited States drawbacks are allowed on imported articles exported for sale abroad, and tin firearms, agricultural implements, ete., made of foreign Inaterials with stocks and Ilan tiles of v..04l grown in this country, provided the imported materials exceed one-half of the value of the whole material used. Every one entering merchandise for importation or exportation with right of drawbael: is required to deposit the orig inal invoice of such merchandise with the col lector, Nvlio causes an inspection to be made by the proper ntlic•r and the articles to Lao Compared with their respective invoices before granting the permit for lading. No drawback is allowed on merchandise entitled to debenture under laws unless it be exported within three vest's tram the dale of importation. Drawbacks are also admitted for the exportation of distilled liquors and inanufarturedi tobacco on which in ternal revenue taxes have been paid.