DUTY DRAWBACK2019-11-12T21:45:12+00:00

duty drawback

WE’RE BRINGING DUTY BACK

WHAT IS DUTY DRAWBACK?

Duty drawback allows companies in any role in the supply chain to apply for a refund of certain Customs duties & taxes for exported or destroyed items.

99% OF DUTY + ALL TAXES & FEES (HMF & MPF) ARE REFUNDABLE WHEN DRAWBACK APPLIES!

This export promotion program is sanctioned by the World Trade Organization –
and is considered a privilege, not a right.

Signed in 2016, the Trade Facilitation & Trade Enforcement Act (TFTEA) has been a recent ”game-changer” for drawback…

  • INCREASED CLAIM TIME FRAME FROM 3 TO 5 YEARS
  • CLAIMS CAN BE FILED FASTER, ELECTRONICALLY
  • EASED SUBSTITUTION RULES – BIG ADVANTAGE!

benefits

FOR INTERNATIONAL SUPPLY CHAINS

  • Recoup up to 99% of U.S. import duties & taxes

  • Reduces the cost of goods

  • Promotes U.S. manufacturing & exports

  • Allows U.S. companies to be more competitive in the global market

  • Accelerated 30-day payments for claims with granted privilege & bond

CONSIDERATIONS

  • NOT BENEFICIAL for one-time exports or duty-free imports;

  • NOT AVAILABLE for AD/CVD;

  • NO REFUNDS for Section 232 Aluminum & Steel duties;

  • NOT ELIGIBLE for U.S. Customs territory exports (Puerto Rico, U.S. Virgin Islands, American Samoa; Guam, etc…);

  • SOME LIMITATIONS for specific free trade agreements (NAFTA, etc…);

  • BOTH SECTION 301 & 201 DUTIES ARE ELIGIBLE FOR REFUND.

types of duty drawback

is duty drawback

RIGHT FOR MY COMPANY?

methodology

DIRECT IDENTIFICATION

Drawback may be claimed on imported material that is subsequently exported in unused condition.  Records must clearly establish the fact that the exported merchandise was the imported merchandise.  CBP must be notified of an export shipment prior to export unless a waiver has been established.

SUBSTITUTION

Drawback may be claimed on imported material that is not the exact merchandise that was exported.  Substituted merchandise has to match to the same 8-digit classification as the destinated imported merchandise.  Records must clearly establish the fact that the exported merchandise is a match to the 8-digit classification of the imported material. CBP must be notified of an export shipment prior to export unless a waiver has been established.
NAFTA ineligible.

global trade solutions

GTS SERVICE MENU

  • REGULATORY COMPLIANCE
  • MOCK AUDIT PROGRAM
  • MANUALS, AUDITING, & REPORTS
  • RISK MITIGATION
  • SECTION 301 GUIDANCE
  • DUTY MITIGATION
  • TRADE REMEDY ASSISTANCE
  • MANAGED COMPLIANCE SERVICES
  • ON-SITE & WEB-BASED TRAINING
  • SEMINARS & WEBINARS
  • PROJECTS & MORE!

subscribe to our blog

get latest posts to your email

let’s talk trade!

KATE RAYER, LCHB

Global Trade Manager
Green Worldwide Shipping, LLC

e-mail us, anytime at gts@greenworldwide.com!

WE SPEAK SOLUTIONS

ALL
SERVICES
CUSTOMS
BROKERAGE
FREIGHT
FORWARDING
DOMESTIC
TRANSPORT
WAREHOUSING
& DISTRIBUTION
PROJECT
CARGO
TIME
CRITICAL
ECOMMERCE
CARGO
INSURANCE
CUSTOMS
BONDS