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# Inland Duty Drawback

## Definition

A drawback mechanism that permits the recovery of inland duties imposed on goods produced within the country when those goods are exported. These duties, distinct from customs duties on imports, are typically levied on domestic production and manufacturing, and their drawback ensures that internal taxation does not create barriers to international trade.

## Source Chapter

Book IV, Chapter 4

## Context

The chapter discusses how inland duties, like excise duties, can be recovered through drawbacks to prevent them from discouraging exports. Smith emphasizes that such drawbacks do not artificially stimulate particular industries but merely prevent the duties from excluding domestic goods from foreign markets where they could otherwise compete effectively.

## Economic Domain

Regulation

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