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FAQs 2017-01-17T15:28:04+00:00

Frequently Asked Questions

I heard that there is a new drawback law that has passed. When does this go into effect? 2016-12-14T20:52:53+00:00

When President Obama signed the Trade Facilitation and Trade Enforcement Act (TFTEA) on February 24, 2016 significant change was brought about in the Drawback Simplification Statute, found in 19 U.S.C. 1313.  However, CBP has two years from the date of that signature to write the regulations allowing those changes to go into effect.  After that, the trade has another year to transition everything they file.  Check out our News section for detailed descriptions of the upcoming changes.

I buy merchandise from suppliers and I know some of them import what they sell me. I assume they are passing the duties they pay along to me in my purchase price. Can I get that back too? 2016-12-14T15:52:38+00:00

It is possible to recover those duties with the cooperation of the suppliers.  They will need to provide you with a certificate of delivery, prepared on CBP Form 7552.

Why only 99%? 2016-12-14T15:51:59+00:00

CBP only pays 99% of the duties as a duty drawback refund.  The remaining 1% is held to cover their costs to administer the program.  This has been in place since drawback was established in 1789. There are one or two minor exceptions

Can I file duty drawback on shipments to Mexico? 2016-12-14T15:51:15+00:00

Drawback can be claimed on shipments to Mexico or Canada for certain types of unused and rejected merchandise and still receive a full drawback refund.  Identification of the exported merchandise back to its original importation is required for full recoveries using either a specific or accounting method.  Unused merchandise substitution drawback is not allowed on shipment to either MX or CA.

Manufacturing drawback and unused merchandise that is no longer in the same condition can be filed but these claims require a comparison of duties paid into the US to duties paid into MX or CA and you receive 99% of the lesser amount.

Is it really necessary to provide signed master bills of lading to support drawback claims? 2016-12-14T15:50:33+00:00

It is necessary to prove the date and fact of export, detail what was exported, and note the exporter of record.  CBP has become dependent on the master bill of lading to get the true export date for international shipments by vessel.  They no longer require original signatures, so copies can be presented.

How far back in time can I go when claiming drawback? 2016-12-14T15:26:45+00:00

For every duty drawback type you are eligible to go back and claim on three years’ worth of past exports with proper approvals in place.  At that point, it depends on the type of drawback you are filing, but they all allow a minimum of a three years reach back from date of export to date of import.  Under manufacturing it is possible to extend that to five years under certain circumstances. Upcoming regulations as a result of Drawback Simplification will be changing time periods to five years to file a claim from date of import for all drawback types.

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