What are your company’s duty drawback opportunities?
Generally, companies pay customs duties directly when importing goods or indirectly when purchasing imported goods in US. These customs duties can be costly and sometimes unnecessary. It is important for your company to understand how these customs duties can be reduced or eliminated.
Opportunity: Duty reduction through duty drawback
Duty drawback is an area that provides tremendous opportunity for cost reductions, through duty recoveries, for those companies which export product from the United States. Duty drawback is a refund of customs duties originally paid on either:
- Imported material exported in the same (unused) condition; or
- Imported merchandise used in the manufacturing of products subsequently exported.
US customs regulations authorize several types of drawback for products that are imported, manufactured or assembled into a new item. Drawback can be claimed on manufactured items exported, or destroyed under US Customs Service supervision. Generally, it is the US exporter who is entitled to the refund of duties, which may be claimed up to three years after the export date of the manufactured item. The maximum refund is 99% of import duties paid. Drawback is also available for items exported that were purchased domestically and are commercially fungible (inter-changeable) with the imported items.
We can assist your company in increasing its untapped duty refund potential by developing an effective drawback program, which does not burden your company’s day to day operations. The program developed for your company will allow you to leverage as much or as little of the work effort to us, while maintaining the high quality standards needed.
