Can duty-drawbacks have a protectionist bias? Evidence from MERCOSUR (English)

Duty drawback (or rebate) systems, reduce or eliminate the duties paid on imported intermediate goods, or raw materials used in the production of exports. When a firm imports an intermediate product for use in the production of an export good, tariff payments on the imported intermediate good are either waived (duty drawback), or returned to the producer once the final product is exported (rebate). These incentive systems are often justified on the...
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Citation

Cadot, Olivier; de Melo, Jaime; Olarreaga, Marcelo.

Can duty-drawbacks have a protectionist bias? Evidence from MERCOSUR (English). Policy, Research working paper|no. WPS 2523 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/296871468770367874

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