Frequently Asked Questions

U.S. duty drawback is a program that refunds exporters and importers up to 99 percent of the duties they paid when importing goods into the U.S. It aims to promote U.S. commerce and manufacturing by allowing U.S. products to compete internationally without the burden of import duties.

The three main types of U.S. duty drawback are: Manufacturing (for goods manufactured or produced in the U.S. using imported, duty-paid merchandise), Unused (for merchandise not used in the U.S. prior to exportation), and Rejected (for duty-paid merchandise that does not meet specifications or is defective).

For importing, required documents include Entry Summary (CF 7501), Commercial Invoice, and Certificate of Delivery (CF 7552). For exporting, required documents include Commercial Invoice, Bill of Lading, and Export Waiver.

U.S. duty drawback claims can be filed at designated centers in Chicago, Houston, New York/Newark, and San Francisco.

Submitting duty drawback bonds and using electronic submissions via the Automated Broker Interface (ABI) can expedite the process. Accelerated payment options are also available to receive refunds faster.

Yes, Section 301 duties are eligible for drawback, along with other duties such as Merchandise Processing Fees (MPF) and Harbor Maintenance Taxes (HMF).

Yes, you can file for drawback on import and export transactions that occurred over the past five years, provided the qualifying export date is after the import date.

In the US, the cost is typically a competitive percentage of the duty recovered, depending on factors such as the duty recovery levels, statutory filing provision, and administrative resources required.

U.S. Customs and Border Protection refunds 99% of the duties, fees, and taxes paid.

With accelerated payment, refunds can be received within 30 days from the date of filing. Without accelerated payment, it could take one year or longer.

While it is possible to claim duty drawback yourself, the process is complex and can be very lengthy for non-specialists. Trade Duty Refund and its partners have decades of experience in this field and will help optimize the process both in financial value and in time. Additionally, Trade Duty Refund provides duty reclaim solutions in different regions around the world, making it a one-stop shop for cross-border e-commerce merchants looking to benefit from higher cash flow and returned goods logistics cost savings. For more insights on duty refunds, duty-free returns, and international trade, contact Trade Duty Refund.

Nearshoring to Free Trade Agreement (FTA) countries involves relocating business processes or manufacturing operations to countries that have a free trade agreement with the company's home country. This strategy is often adopted to take advantage of the benefits offered by FTAs, such as reduced tariffs, simplified customs procedures, and improved market access. Companies in the U.S. might nearshore to Mexico or Canada to take advantage of the USMCA.

Section 301 of the Trade Act of 1974 is a provision of U.S. trade law that authorizes the President to take action, including the imposition of tariffs, to enforce U.S. rights under trade agreements and to respond to certain unfair trade practices by foreign countries. The term 'Trump Tariffs' refers to the tariffs imposed by the Trump administration under this authority. During his mandates, Donald Trump used Section 301 to impose tariffs on a wide range of goods, particularly targeting China. These tariffs were intended to address issues such as intellectual property theft and forced technology transfer. The tariffs affected billions of dollars worth of goods, including steel, aluminum, and a variety of consumer products.

A Free Trade Zone (FTZ) is a designated area within a country where goods can be imported, handled, manufactured, reconfigured, and re-exported without the intervention of CBP, the US customs authorities.

A bonded warehouse is a secure facility where imported goods can be stored, manipulated, or undergo manufacturing operations without payment of duty. It is authorized by customs authorities and allows for the deferral of duty payments until the goods are released into the market. This setup is particularly useful for businesses that need to store goods for extended periods before selling or distributing them, as it helps in managing cash flow and reducing upfront costs.

This rule allows importers to use the price paid for the goods in an earlier sale (often the first sale from the manufacturer to a middleman) rather than the price paid in the last sale (from the middleman to the importer) for the purpose of calculating customs duties. Contact us for more detail on applicability, requirements and documentation.

The standard method is based on the price actually paid or payable for imported goods when sold for export to the United States.

In a B2C model, eCommerce sellers must use the final retail price as the declared value when making a sale to an end consumer.

Yes, one exception is if the seller has implemented a fully-fledged 'First Sale' program. This requires proper documentation and procedures for bona-fide, arms-length transactions occurring prior to the final sale to the end consumer.

A Non-Resident Importer (NRI) is a business or individual that imports goods into a country without having a physical presence in that country. NRIs are responsible for ensuring compliance with local customs regulations and may be required to appoint a customs broker or agent to handle the import process on their behalf.

Yes, a Non-Resident Importer (NRI) can claim duty drawback, provided they meet the necessary requirements and comply with local customs regulations.

Yes, you can benefit from Duty Drawback using this model. Some conditions apply, in particular with regards to the logistics model that you use. Contact our Trade Experts for more information by clicking here

You can find more information about US Duty Drawback on the US Customs and Border Protection (CBP) website, or by consulting with Trade Duty Refund experts. They can provide detailed guidance on the process, eligibility, and documentation required for filing and optimizing a claim. Make an appointment with us by clicking here.

Yes you can. Duties are paid when goods leave the bonded facility or the FTZ. But the same duty drawback rule applies.

The big distinction when goods get into FTZ, the applicable duty rate is the one in application when goods entered the US Bonded Warehouse, the duty rate is the one in effect when you exit the bonded warehouse.

A combination of 4 actions: Take a hair cut: talk to suppliers and ask for a price decrease Reduce non essential expenses (travel, advertisement, events) Pass the cost on to the end customer (Longer Term) Find alternate sourcing opportunities (from China to India, Vietnam and Mexico)

This rule allows importers to use the price paid for the goods in an earlier sale (often the first sale from the manufacturer to a middleman) rather than the price paid in the last sale (from the middleman to the importer) for the purpose of calculating customs duties. Contact us for more detail on applicability, requirements and documentation.