Goods imported to a country for the purpose of re-exporting attracts a rebate known as...
Goods imported to a country for the purpose of re-exporting attracts a rebate known as
- A) customers drawback
- B) export royalty
- C) incentive
- D) export rebate
Correct Answer: A) customers drawback
Explanation
When goods are imported into a country with the intention of being re-exported, they can receive a rebate, which is a refund or reduction in cost. This is known as customers drawback.Customers drawback is a rebate given to importers who plan to re-export the goods they have imported. It serves as an incentive to encourage the importers to engage in export activities.
In this question, the correct answer is Option A: customers drawback. This means that when goods are imported for the purpose of re-exporting, importers can receive a rebate known as customers drawback.
The other options listed in the question are not correct. Option B: export royalty refers to a fee or payment made to the government for the right to export goods. Option C: incentive refers to a reward or benefit provided to encourage a particular action, but it may not specifically relate to goods imported for re-export. Option D: export rebate is similar to customers drawback, but it is not the specific term used for the rebate given to importers of goods for re-export.
To summarize, when goods are imported to a country for the purpose of re-exporting, the rebate they can receive is known as customers drawback.