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!
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
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?
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.
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.
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KATE RAYER, LCHB
Global Trade Manager
Green Worldwide Shipping, LLC
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