Did you know that if you export goods you may be able to recover 99% of all Customs duties paid on any imported materials contained in those products? And that with the necessary documentation, you can apply for a retroactive refund of any import duties paid going back three years from date of export?
You may be entitled to hundreds or thousands of dollars in duty drawback refunds — and not even know it. If you are eligible to recover drawback, do you have the resources or ability to efficiently compile the information to support the claim? FedEx Trade Networks can help you obtain the entire drawback you are entitled to. We offer the duty drawback expertise and experience you need, whether you are filing a claim or establishing a new drawback program.
A drawback is a refund, in whole or in part, of the customs duties collected upon the importation of materials that are later exported unused or as a finished good. Drawback is driven by exports. Efforts should begin here and move backward to identify duty-paid components used in manufacture, or product on which duty was paid upon import and is then exported by you or any other company.
- For imports: Customs Entry (7501) forms and commercial invoices. A packing list will be required when invoices do not indicate product codes, such as size or color.
- For exports: Airway bills or bills of lading and export invoices. A numbered bill of lading, unique to that export, will be required.
- For exports to Canada and Mexico: Additional documentation is required per the NAFTA agreement.
- For Canadian exports, U.S. Customs and Border Protection requires Revenue Canada form B3 to establish proof of exports.
- For exports to Mexico, the Mexican Customs form "Pedimento" must be kept to establish proof of export.
If you claim exports to NAFTA and non-NAFTA countries within the same drawback program, all exports must be filed under the NAFTA rules. If you do not claim NAFTA exports, then you are able to file substitution drawback.
If you are importing or purchasing domestic foreign products or parts of raw material that are re-exported without any significant transformation, FedEx Trade Networks can assist you in filing a onetime retroactive claim on unused drawback.
For NAFTA purposes, if all goods in a particular inventory are non-originating goods, identification is based on one of the accounting methods in 19 CFR § 191.14, subject to the requirements and procedures in that section. If this is not the case, determination of the origin and identification of the goods for drawback purposes must still be based on accounting procedures contained in the Appendix to 19 CFR § 181.
Manufacturing drawback filing requires a drawback ruling to be submitted to Customs before payments can be made on drawback claims. FedEx Trade Networks can work with you to draft the drawback ruling, which outlines for Customs the nature of your operations and the basis for your claims.
Under NAFTA, manufacturing drawback falls under the "Lesser of the Two" rule, which means the amount of drawback paid is based on the lesser amount of the customs duties paid on the goods either to the United States or to Canada or Mexico.
Calculate the Advantages
If you're eligible to recover drawback, count on FedEx Trade Networks to help you do it. We offer the duty drawback expertise, experience and resources you need, whether you are filing a claim or establishing a new drawback program.
Here is what we can do for you:
- Speed refunds — you get a check within three to four weeks via electronic filing.
- Input all data electronically.
- Provide accurate, comprehensive recordkeeping.
- Create a flawless audit trail.
- Create ongoing program-status updates.
Drawback refunds even if you are not the importer.
With the proper documentation (a completed certificate of delivery), your domestic suppliers of imported materials can transfer their drawback rights, allowing you to recover 99% of the duty paid when you export products.
Big bonuses for new claimants.
If you have never filed for drawback, you can retroactively claim duty on exports shipped over the past three years. This provision allows you to qualify for a substantial refund.