Simplified Wealth of Nations by Adam Smith, Book 4, Chapter 4: Drawbacks

Chapter 4: Drawbacks

1 Merchants and manufacturers are not content with the monopoly of the home market. 2 Drawbacks seem the most reasonable of these encouragements. 3 The same thing may be said of the drawbacks on the re-exportation of imported goods. 4 Most of the duties imposed since the old subsidy, are all drawn back on exportation. 5 Imported foreign goods which greatly exceed home consumption are re-exported. 6 We still have the monopoly of the West Indian Islands sugars. 7 Our own manufacturers are jealous of some goods. 8 We are unwilling even to be the carriers of French goods. 9 The fourth of the rules annexed to the Old Subsidy allowed more than half the import duties of all wines to be drawn back on exportation. 10 Chapter 7 of 1663 was called an act for the encouragement of trade. madeira_map 11 That act favoured the colonies so much more than other countries, in terms of wine drawbacks. 12 Perhaps drawbacks were originally granted to encourage the carrying trade. 13 The customs revenue profits from such drawbacks in the part of the duty retained. 14 These reasons justify drawbacks, even if all the taxes of excise and duties, were always drawn back on exportation. 15 These reasons will justify drawbacks only on exporting goods to independent countries. 16 Drawbacks are useful only in cases where the goods they export are really exported overseas and not clandestinely re-imported.
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Next: Chapter 5: Bounties and Subsidies