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# Drawback

## Definition

A refund of duties paid on imported goods when those goods are subsequently
exported, designed to prevent double taxation and encourage re-export trade.

## Source Chapter

Book IV, Chapter 5

## Context

Smith distinguishes drawbacks from bounties, noting that drawbacks simply
return money already paid rather than providing additional subsidies, though
both can be subject to fraudulent abuse.

## Economic Domain

Regulation

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