Which of the Following Situations Best Describes When Duty Drawbacks

question 24

Multiple Choice

Which of the following situations best describes when duty drawbacks can be granted?

• A) A manufacturer minimally transforms imports, making products that are then exported.
• B) A distributor resells imported products.
• C) All of the raw materials are imported, a product is created, and then sold domestically.
• D) An exported product has significant domestic content.

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Definitions:

Net Income

The total profit remaining after all expenses, taxes, and deductions have been subtracted from total revenue.

Transfer Pricing

The pricing of goods, services, or intangible properties transferred within divisions of a company or between subsidiaries.

Income Tax Rate

The percentage of income paid to the government as tax.

Variable Cost

Costs that change in proportion to the level of goods or services produced or sold.