Duty Drawback

Drawback is the refund of 99% of duties paid on imported goods when they are exported. Drawback applies to goods used in manufacturing a product domestically which is then exported and to merchandise which is imported, not used here, and re-exported. Significant savings result in participating in a drawback program.

What We Do

Advise you of the potential for claiming drawback.
Prepare applications for manufacturing drawback and shepherd the application through approval.
Establishing “commercial interchangeability” where “substitution” drawback is to be used.
Prepare applications for “Exporter’s Summary Procedure” and for “Accelerated Payment” of drawback claims.

More Details

Drawback applies in two situations: where the imported product is used as a material in the manufacture of a US-made product that is exported, and where goods are shipped abroad after having been imported and which were not used here, as where they were warehoused for future sale.

Both “manufacturing” and “unused merchandise” drawback are broken down into “direct identification” and “substitution.” Under “direct identification,” the claimant must be able to point to the specific entry under which the export or the material used in the manufacture of the in the export was imported. Under “substitution,” the claimant need not specify the specific import entry but any entry of "commercially interchangeable" goods. Thus you may claim drawback even if your inventory records cannot specify the entry under which a particular item was imported.

“Manufacturing drawback” must proceed under an approved drawback agreement with US Customs. There is no such agreement required for “unused merchandise drawback” and it can be used either for an extensive export program or to cover an isolated export shipment. The regulations require that should you wish to claim under “unused merchandise” drawback, you must give Customs only two working days notice prior to export. If this causes a problem, a company can apply for a waiver of this advance notice requirement, the “Exporter’s Summary Procedure.” Upon approval of a different application, one for “Accelerated Payment,” an exporter will collect drawback refunds within 30 days after filing the claim. Otherwise the refunds are issued only after several months, after Customs has processed the claim.

Contact Us for More Information

You are welcome to call us to review any area of concern. Contact Stephen M. Zelman, Esq., at 1+ 212.245.6100 for a telephone consultation, with no obligation for any fee. E-mail at stephenzelman@gmail.com.

| Links

The comments are owned by the poster. We aren't responsible for their content.

Zelman & Associates
Stephen M. Zelman, Esq.

NY, customs, US Customs, international, trade, lawyer, attorney, firm, C-TPAT, valuation, tariff, classification, audits, marking, record keeping, requirements, import, export, duty, exemptions, duties, drawback, licenses, penalties, fines, currency seizures, seizure, copyright, trademark, rulings, litigation, broker, freight forwarder, steamship line, airlines

888 Seventh Avenue
New York, New York 10106
Phone: 1+212.245.6100
Email: stephenzelman@gmail.com

Customs and International Trade Law Firm featuring lawyers and attorneys representing importers, exporters, brokers, freight forwarders, steamship lines, and airlines with respect to C-TPAT, valuation, tariff, classification, audits, marking, record keeping, US Customs requirements, import, export, duty, duties, exemptions, drawback, licenses, penalties, fines, currency seizures, seizure, copyright, trademark, rulings, and litigation.

The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. You may view our qualifications and experience by clicking here.

Not all results are provided, the results are not necessarily representative of results obtained by the lawyer, and a prospective client's individual facts and circumstances may differ from the matter in which the results are provided, if any.

Nothing in this web site should be construed as legal advice to you and does not establish an attorney client relationship between us. You should not rely upon any information contained herein without separate independent legal research and advice. Our law firm is under no obligation to respond to correspondence, including, without limitation, email, until a written retainer agreement is executed. Nothing contained herein should be construed as an endorsement of any and all products or services contained herein or accessible herethrough.

You may use our newsfeed to display CustomsLaw.Pro's news at your site.