Questions and answers about  Drawback

  • Duty Drawback Bond

    Question: We are going to be doing duty drawback and have been approved for accelerated payment.  What is best a single bond per drawback claim OR a blanket bond to cover all of our claims for the next year? Answer 1: Assuming you have a fairly large amount you are seeking, to make the program […]

  • Duty Drawback Questions from CBP

    Question: We have been doing drawback for years and have submitted many applications all approved with few if any questions so I’m very confused by the questions below. This is for simple unused, same condition, importer is the exporter, inventory tracked via their WMS by quantity and part number. Destination countries are Mexico, Canada and […]

  • Duty Drawback Desk Review

    Question: We are doing duty drawback and went through a CF28 desk review, successful results.  But we have claims from 2020 that have still not liquidated, they show as extended.  Does anyone know why claims are taking so long to liquidate and does CBP ever do a second desk review if the first one was […]

  • First Drawback

    Question: I have applied and received our Company’s first Drawback funds from CBP. My finance team is asking, how do other companies apply the funds to the import and export orders or in another way to the ledger? They want to ensure that they are keeping record correctly. Answer 1: Drawback is the refund of […]

  • Duty Drawback

    Question: Already received the application approval from CBP and now ready to file a claim, can anyone provide guidance. Is there a form that I can use when filing a duty drawback claim? Answer 1: It depends on the type of claim – look at CFR19 – 181.47 Completion of claim for drawback. Answer 2: […]

  • Unused/Subsitution Drawback – Records

    Question: I have just been hired at a company who’s main focus is duty drawback (Unused/Substituted merchandise) However, this would be my first time filing a claim. They do not have a WMS (warehouse management system) and Cannot provide confirmation of warehouse-in records,  only warehouse-out. My question is, how important is the Whs Receipt-in record? […]

  • Duty Drawback

    Question: Many of our items have the 25% China duty.  We export these items to Canada and Mexico.  We invoice the MEX/CAN buyer for the goods and issue a separate invoice for the 25% duty.  We are doing an analysis to determine the duty refund for the last four years and wondering if the 25% […]

  • Unused Merchandise Duty Drawback

    Question: Is there a best practice for obtaining export documentation or B3 for Canada, regarding shipments where you are not the exporter of record? The information would be needed for unused merchandise duty drawback. Answer 1: You only get an import reduction if you export. So therefore you SHOULD be the Exporter of Record. When […]

  • Substitution Same Condition/Unused Merchandise Drawback

    Question: Curious if anyone knows why items imported from non USMCA countries such as Japan, Germany, China, etc., same 10 digit HTS code Substitution Same Condition/Unused Merchandise Drawback cannot be claimed if exporting unused to Canada or Mexico? I’d like to know how exporting to Canada or Mexico is different than exporting to any other […]

  • Duty Drawback

    Question: A customer of ours reached out to us about using our import records to claim duty drawback as we sell them our foreign sourced materials which they use in the manufacture of their goods.  They are using a drawback provider who would manage and submit claims.  We do not want to provide them with […]

  • Unused Merchandise Drawback

    Question: Importer has too much inventory that they cannot sell. Goods imported from China. Can they file for drawback under the “unused” merchandise provision, if they destroy the merchandise? Answer 1: Good afternoon,If you destroy the inventory, you can claim duty drawback.   We recommend offering customs to supervise the destruction.Thank you and Happy Holidays!Ruth GirmscheidPresident, […]

  • Vietnam Duty

    Question: We are shipping foreign raw materials to Vietnam to be used for manufacturing in Vietnam.  We are being charged duty on the import.  Does Vietnam offer drawback or a duty-free import program, if raw materials will be exported as part of the finished goods? Answer 1: Your VN customs broker should know this answer. […]