Drawback of Duty

Drawback is a legal terminology that describes the refund of duty tax paid to the government on goods. Regarding tobacco specifically, drawback can also refer to the act of relinquishing tobacco material, and typically the scrap byproduct of a manufacturing process, to the government as to claim the drawback value, which might make financial sense in certain jurisdictions as opposed to, say, discarding the material on account of the high duty that tobacco is liable to be charged.

References

1. Tobacco Encyclopedia. Ernst Voges. Drawback. Page 116. 1984.