Drawback

Questions and answers about  Drawback

  • Duty Drawback

    Question: We import components/parts from Europe and pay duty on those components/parts. We then export to Canada for processing, assembly, testing, etc. which results in a substantial transformation of a machine and a new HTS number. When it comes back into the US, we have been claiming USMCA (who knows what will happen in March). […]

  • Trump Tariffs – Drawback On goods already entered

    Question: Like everyone,  I see the February 1 Executive Orders on the Northern and Southern Borders, as well as on China.    Does anyone have any definitive information on whether goods already entered into the U.S. from Canada, China, Mexico and duty paid, prior to the date of these orders will still be able to […]

  • 25% Tariffs for Canada & Mexico

    Question: If the additional 25% tariffs do materialize, my assumption is that we can claw that back via duty drawback.  Is that a safe assumption? Could there be any conditions or nuances that would prevent drawback as an avenue to recover these additional tariffs? Answer 1: It will depend on the specifics outlined in the […]

  • Duty drawback and USMCA

    Question: Hello, our company manufactures electronic devices (E.D.’s) in the U.S. We also have a manufacturing facility in Mexico. We export USMCA-eligible E.D.’s to them, and they incorporate them into a larger finished product – electric power distribution control panels. When they import in Mexico they make a valid USMCA claim. Then when the panel […]

  • UK Duty Drawback

    Question: My company is both an importer and exporter (to Germany) of unused consumer goods into and out of the UK. The vast majority of our exports out of the UK have occured post-Brexit. I am a US-based Global Trade Compliance Manager, with experience successfully implementing an unused merchandise drawback program (both direct ID and […]

  • Drawback on Returned Merchandise Subsequently Destroyed

    Question: We are a consumer product company. We have a warranty program which accepts defective merchandise. The merchandise is shipped to a repair facility, where it is deemed repairable or non-repairable. Non-repairable merchandise is scrapped by a recycling company, who shreds it into pieces. For product that was imported, sold to a customer, returned within […]

  • Duty Drawback

    Question: I have a question for the group if the scenario below is allowable for Duty Drawback. We import parts from China into the US, duty paid Some of the parts are exported to Mexico where they are manufactured into a new item, substantial transformation, new HTS code. It has been verified that the new […]

  • Duty Drawback Questions – HMF and MPF

    Question: I have not handled drawback before and my company is in the process of determining if it is financially beneficial to claim drawback.   Can anyone tell me if the HMF and MPF can be claimed too, or just the duty?  For example, last year the duty paid was 1.8 mil and the HMF and […]

  • Third Party Drawback?

    Question: Hi Drawback Gurus,  I have been approached by one of my customers who is exporting goods that I am selling to them.  I am the importer and pay the duties and they have asked for me to designate entries of goods I sell them in order to “team up” for duty drawback purposes (the […]

  • Drawback Privilege Application

    Question: A few questions for the more experienced Drawback filers. For a new drawback claimant, do you immediately apply for AP and Waiver of Prior Notice for them?  Even if they do not have a current drawback program or have ever claimed drawback.  How about for low volume claimants (1-2 claims a year) and/or low […]

  • First-time duty drawback

    Question: The company that I work for is starting a duty drawback program.  My question is about the relation of the first-time duty drawback and the one-time waiver of prior notice. It seems to me that when we get approved for the drawback program we can go back (one time) and claim drawback on all […]

  • Duty Drawback

    Question: Company A (existing duty drawback claimant) acquired company B. Company B now has the same EIN, just a different suffix. We, company A are asking how to claim duty drawback for company B, will a new application be required or how do we add company B to our privileges? Answer 1: I believe you […]