Also known as: bonifications · bonus · allowance
Written by attorneys · grounded in primary & secondary sources — see below
A tax remission usually granted on goods intended for export. The remission allows the commodity to enter foreign markets free of the domestic tax burden that would otherwise apply.
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Beacon Bank financed Brighton Manufacturing's shipment of machinery to a foreign buyer. When the initial tender was rejected as nonconforming, Brighton notified the buyer and obtained a further period to substitute conforming goods. The government granted bonification on the replacement shipment, eliminating the domestic tax so the machinery could compete abroad at the contract price.
After her husband's death, Beatrice Brown signed a written agreement waiving homestead and elective-share rights. The estate included export inventory subject to bonification. Because the waiver was enforceable without consideration, the estate could claim the full tax remission on the goods destined for foreign sale.
Boulder Construction's export-bound equipment was damaged in transit. The court measured damages as the difference in value before and after harm, with due allowance for repair. Bonification was then applied to the repaired goods, permitting sale abroad without the original tax.
Baxter Dynamics established a pension plan for employees involved in export production. The plan documents expressly tied benefits to goods qualifying for bonification. The corporation could therefore offer lower prices in foreign markets while still funding the plan from domestic operations.
Bianca Blanco contracted to buy identified wine for export. Partial casualty occurred before risk passed. She accepted the deteriorated goods with a price allowance. Bonification was granted on the accepted quantity, enabling resale abroad as if untaxed.
Brendan Burns's surviving spouse received the family home under a constitutional homestead right. The estate also held export inventory. The value of the homestead was charged against the allowance, freeing the inventory to receive bonification and enter foreign markets without domestic tax.
Bonification removes the domestic tax from goods intended for export. This permits the exporter to sell the commodity in foreign markets at a price that does not include the tax, improving competitiveness abroad.
It is usually granted on goods destined for export. The remission applies so that the foreign purchaser effectively buys the product free of the domestic tax that would otherwise be embedded in the price.
By eliminating the tax component, bonification allows the seller to quote a lower price abroad. The commodity reaches the foreign buyer as though no domestic tax had been imposed.
…reliance upon the criminal law." Bantam Books, Inc., v. Sullivan, 372 U. S. 58, 70. The state rule of law is not saved by its allowance of the defense of truth. A defense for erroneous statements honestly made is no less essential here than was the requirement of proof of guilty knowledge which, in Smith v. California, 361…