What is Duty Drawback?
Duty drawback is the refund of duties, taxes, and fees paid on imported merchandise that is exported or used in the manufacturing of exported merchandise. The establishment of the U.S. duty drawback program and the legislative policy underlying the program is to ensure the competitiveness of U.S. industry in the global market when competing against lower-priced products from our trading partners.
In most situations, U.S. Customs will refund up to 99% of the original duties and fees paid by the importer and will allow the claimant to reach back and claim drawback on export transactions that are a maximum of three years old. You need not be the importer or even the exporter in order to receive a duty drawback refund. Rights to drawback dollars can be assigned to or from importers, exporters, or other parties in the supply chain.
The drawback process is not simple, but that’s where we come in! As your drawback specialist, we will work with you to identify your potential and the drawback types you can pursue, create a customized drawback program, and communicate with U.S. Customs regarding your claims.
Are You Eligible for Duty Drawback?
The drawback program was initiated for the purpose of creating jobs, encouraging manufacturing, and increasing exports. The Continental Congress first established drawback in 1789, and it was initially limited to specific articles that were directly imported and exported. Since that time, drawback has been expanded to include numerous products and industries, including:
- Agricultural products
- Alcohol and beverages
- Consumer goods
- Industrial chemicals
- Metals and alloys
- Petroleum and derivatives
- Pharmaceuticals and medical equipment
- Piece goods/fabrics
- Wearing apparel
Although there are several types of duty drawback available, the programs most commonly utilized by the importing and exporting trade community are unused merchandise, manufacturing, and rejected merchandise.