Duty Drawback FAQ
What type of importer/exporter should consider Duty Drawback?
An importer that knows it will be exporting a previously imported product should look into the Duty Drawback program.
When is duty drawback most beneficial?
When the duty refund from Duty Drawback is high enough to cover the costs of administrating a duty drawback program.
It will NOT be beneficial if:
- an importer is going to export one time only
- an importer is importing a duty free product
- an importer is importing a product that qualifies for a Free Trade Agreement
What should an importer be cautious of when pursuing Duty Drawback?
There are certain administrative costs to get set up with a continuous duty drawback program. An importer will want to significantly outweigh those costs. If an importer plans on exporting an imported item, it helps to analyze the Duty Drawback program prior to pursing.
Moreover, unused merchandise requires a notice of intent signed by CBP before the goods are exported. A company that wants to export their imported goods must ensure they’ve taken these steps. Scarbrough can do this for you.
What else should I know about Duty Drawback?
If you’ve been exporting imported product and not claiming drawback, there is a one time provision that allows an importer to retroactively claim back up to 3 years of duty.
How can Scarbrough help me?
Scarbrough’s Trade Compliance Consulting Division is known for its experts in U.S. Customs Compliance and has close relationships with related parties and international trade law partners in place to assist you in need. Scarbrough has assisted in numerous organizations to develop continuous Duty Drawback programs and consulted whether or not an organization should pursue. Please don’t hesitate to contact us today.
What documents will be helpful?Documents Required Questionnaire Compliance Procedures Proof of Export
For more information, visit CBP.gov