• Duty Drawback

    Question: We import parts from China, pay duty/tax. The parts are sent to Mexico for assembly and returned to the US within 3 years and pay duty/tax on the advanced in value, 9802. We then export the assembled, (finished goods) to various countries. We have an approved duty drawback manufacturing ruling request, but it was […]

  • Duty Drawback

    Question: I am attempting to get ready for senior management approval for our company’s first duty drawback program. I am going through the eCFR and finding many requirements, such as accounting method, a bank account, document requirements, a bond requirement, etc. If there were a guide out there called “Getting Ready for Duty Drawback”, that […]

  • Duty Drawback

    Question: We are going to be applying for duty drawback combined privileges.  Regarding the accounting methods, 19 CFR 190.14, we so not use any of those described, but we use a direct identification through our inventory system.   Our broker is telling us that since it isn’t one of those listed, we are required get request […]

  • Duty Drawback

    Question: We import components/parts from Europe and pay duty on those components/parts. We then export to Canada for processing, assembly, testing, etc. which results in a substantial transformation of a machine and a new HTS number. When it comes back into the US, we have been claiming USMCA (who knows what will happen in March). […]

  • Trump Tariffs – Drawback On goods already entered

    Question: Like everyone,  I see the February 1 Executive Orders on the Northern and Southern Borders, as well as on China.    Does anyone have any definitive information on whether goods already entered into the U.S. from Canada, China, Mexico and duty paid, prior to the date of these orders will still be able to […]

  • 25% Tariffs for Canada & Mexico

    Question: If the additional 25% tariffs do materialize, my assumption is that we can claw that back via duty drawback.  Is that a safe assumption? Could there be any conditions or nuances that would prevent drawback as an avenue to recover these additional tariffs? Answer 1: It will depend on the specifics outlined in the […]

  • Duty drawback and USMCA

    Question: Hello, our company manufactures electronic devices (E.D.’s) in the U.S. We also have a manufacturing facility in Mexico. We export USMCA-eligible E.D.’s to them, and they incorporate them into a larger finished product – electric power distribution control panels. When they import in Mexico they make a valid USMCA claim. Then when the panel […]

  • UK Duty Drawback

    Question: My company is both an importer and exporter (to Germany) of unused consumer goods into and out of the UK. The vast majority of our exports out of the UK have occured post-Brexit. I am a US-based Global Trade Compliance Manager, with experience successfully implementing an unused merchandise drawback program (both direct ID and […]

  • Drawback on Returned Merchandise Subsequently Destroyed

    Question: We are a consumer product company. We have a warranty program which accepts defective merchandise. The merchandise is shipped to a repair facility, where it is deemed repairable or non-repairable. Non-repairable merchandise is scrapped by a recycling company, who shreds it into pieces. For product that was imported, sold to a customer, returned within […]

  • Duty Drawback

    Question: I have a question for the group if the scenario below is allowable for Duty Drawback. We import parts from China into the US, duty paid Some of the parts are exported to Mexico where they are manufactured into a new item, substantial transformation, new HTS code. It has been verified that the new […]

  • Duty Drawback Questions – HMF and MPF

    Question: I have not handled drawback before and my company is in the process of determining if it is financially beneficial to claim drawback.   Can anyone tell me if the HMF and MPF can be claimed too, or just the duty?  For example, last year the duty paid was 1.8 mil and the HMF and […]

  • Third Party Drawback?

    Question: Hi Drawback Gurus,  I have been approached by one of my customers who is exporting goods that I am selling to them.  I am the importer and pay the duties and they have asked for me to designate entries of goods I sell them in order to “team up” for duty drawback purposes (the […]