Duty Drawbacks

Duty drawbacks are used when the items that are imported into one country are then exported to another country. It allows the importer to get money back from United States Customs since the goods did not actually stay in the United States to lower their overall shipping costs. When a person is trying to apply for a duty drawback, they must present several items to US Customs in order to prove that the goods were not only imported, but exported as well. According to United States laws, a drawback can be requested for up to 99% of the duty paid on the goods when imported. These drawbacks can be used for several reasons including a manufacturing drawback which is for goods that will be exported within 5 years of importing, a rejected merchandise drawback which may be merchandise that is not up to the standards of the buyer, and an unused merchandise drawback, which is for when the buyer has exported or destroyed the merchandise within 3 years of importing and the merchandise was being returned for reasons like quotas on agricultural products. Duty drawbacks can be very detailed and the person looking to do a drawback must have all of the aspects spelled out exactly to avoid legal issues. This is why many times companies looking to apply for drawbacks will hire lawyers who specifically handle this type of transaction, especially when the buying or selling of a plant or other manufacturing building is involved. US Customs expects “informed compliance” in all matters and will not allow the drawback to occur if the filings have not be compliance with US law.