Duty Drawback Services for U.S. Import
DHL Global Forwarding has helped customers recover more than $4 Billion in refunded duties over the last 15 years with a 99% success rate under audit.
$78.8 Billion in duties are collected annually. Total recoveries via drawback were $2 Billion recovered (about 2.5%). Customs estimates another $6 Billion is available for duty drawback each year. Contact our team today to conduct a thorough review of your current drawback program free of charge. Our detailed analysis will reveal any untapped drawback potential under the current regulations.
Who is Eligible for Duty Drawback?
Duty drawback is a refund of certain duties paid on imported merchandise when the merchandise is subsequently exported either unused or having undergone a manufacturing process.
Does your company:
- Export merchandise of a foreign origin
- Manufacture goods with foreign components and then export them
- Sell foreign merchandise and/or U.S.-made goods manufactured with foreign components to a domestic company that exports them
If you answered yes to any of the above, you are a candidate for duty drawback.
What are the Benefits of Duty Drawback?
A duty drawback program allows U.S. companies to take advantage of economical foreign materials and uses U.S. labor to produce products for export. This not only helps to create jobs, but also increases company revenue, improves cash flow and enhances global competitiveness.
Did you know that you can also claim duty drawbacks on past exports? Companies can retroactively claim drawback on exports shipped in the past 3 years.
Types of Duty Drawback
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Unused Drawback
If you import merchandise and then export it in essentially the same condition you may be eligible for a refund of duties paid.
Example Scenarios:
Your company imports 500 widgets from Japan. You receive them in the U.S. to examine them for quality and places them into inventory.
A German company then orders 200 widgets, which are removed from your U.S. inventory and exported to the German customer.
The 200 widgets that were exported are eligible for unused drawback.
Manufacturing Drawback
If you import merchandise and that merchandise is significantly changed from its original state and a new and different product is exported, you may be eligible for a refund of duties paid.
Example Scenario:
You import a shipment of 500 widgets from Japan. You received them in the U.S. and place them into inventory.
A German company orders 200 combines. Two widgets are used to each combine. In the manufacturing process the widgets lose their identity and becomes part of the finished combine. You export the 200 combines to the German customer.
The 400 widgets used to make the 200 combines that were exported are eligible for manufacturing drawback.
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