Duty Drawback

Each year, importers collectively pay billions of dollars in duty to the US Government.  Of this amount, several billion dollars are available for refund with only a fraction of that money actually recovered by importers.

The duty drawback program is designed to allow exporters to compete more effectively in foreign markets. While duty and fees are paid to CBP on the majority of goods imported into the US, the duty drawback program allows clients to claim a refund if the imported merchandise is subsequently exported. While the government keeps a small portion of the duty as a processing fee, refund amounts can be significant and make a meaningful contribution to a company’s bottom line.

Managing the Drawback Process – Program Highlights
While the drawback potential may vary based on a variety of factors, there are three major areas where duty refunds are most often realized.

  • Manufacturing Drawback:
    Refunds may be claimed on exported articles manufactured from imported materials.
  • Unused Drawback:
    Imported merchandise that has not been used for its intended purpose and is subsequently exported from the US may be considered for refund.
  • Rejected Merchandise Drawback:
    Drawback may be claimed on merchandise that does not conform to specification if exported or destroyed under CBP supervision.

Drawback Compliance – Recordkeeping is Key
Whether your firm has the potential to receive hundreds or thousands of dollars under duty drawback provisions, providing accurate documentation to support your refund request is indispensable.  The ability to verify drawback claims, provide all relevant information regarding your importing, manufacturing and exporting activities is vital to the success of your drawback program.  Precisely tracing and linking the flow of goods throughout the process will provide a smooth and unchallenged duty drawback program and result in expedited refunds.

Deringer Experts – Providing the Advantage
Deringer consultants understand the nuances of duty drawback regulations and can help design a program that meets all record keeping criteria and provides the mechanism to accurately calculate the exact amount of your refund potential. Working with the experts from Deringer Logistics Consulting Group (DLCG), you can expect:

  • Accelerated refunds
  • Accurate, electronic data transfer
  • Comprehensive recordkeeping procedures
  • Precise audit trails and support
  • Continuous compliance status and timely updates
  • On-going staff education and assessment

From complete duty drawback program development to individual claim preparation, DLCG is ready to help you develop and sustain an effective and efficient program.

For more information on how Deringer Logistics Consulting Group can help your company recoup duties, please email consulting@anderinger.com or call 518-298-7515.