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The duty drawback refund is designed to help American companies compete more effectively in foreign markets. It entitles companies to receive a refund on duties paid upon importation of materials that are subsequently exported. An exporter does not have to be the importer in order to claim duty drawback.
It is often overlooked that companies may claim refunds retroactively for up to three years, and at Reilly International, we have successfully assisted many companies in securing hundreds of thousands of dollars in refunds.
There are three primary types of duty drawback, and in each scenario, 99% of the import duty is recoverable!
Unused Merchandise Drawback*:
Merchandise is imported from foreign countries, duty is paid and the product is exported or destroyed under Customs supervision.
Only incidental work, such as testing, cleaning, inspection and repackaging can be performed on the imported product.
*HMF and MPF refund are eligible
Manufacturer’s Drawback:
Raw material or components are imported from foreign countries and duty is paid. The materials are then incorporated into a finished product or in part with the use of a particular imported product that is exported.
The material or components used in the exported product can be substituted with domestic material that is the same kind and quality of the designated merchandise.
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