Drawback

Questions and answers about  Drawback

  • 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 […]

  • Drawback Privilege Application

    Question: A few questions for the more experienced Drawback filers. For a new drawback claimant, do you immediately apply for AP and Waiver of Prior Notice for them?  Even if they do not have a current drawback program or have ever claimed drawback.  How about for low volume claimants (1-2 claims a year) and/or low […]

  • First-time duty drawback

    Question: The company that I work for is starting a duty drawback program.  My question is about the relation of the first-time duty drawback and the one-time waiver of prior notice. It seems to me that when we get approved for the drawback program we can go back (one time) and claim drawback on all […]

  • Duty Drawback

    Question: Company A (existing duty drawback claimant) acquired company B. Company B now has the same EIN, just a different suffix. We, company A are asking how to claim duty drawback for company B, will a new application be required or how do we add company B to our privileges? Answer 1: I believe you […]

  • Duty Drawback

    Question: We are new in duty drawback. Does anyone can advise what would be the initial preparation required when planning and implementing drawback from period of 2018 to present 2023? Answer 1: How new are you?  Have you filed for permission to file DB?  Do you have a provider chosen?  A methodology determined? I would […]

  • Drawback for China Imports to Canada

    Question: I have reviewed several questions and responses in the answer database about claiming drawback for products imported from countries, such as China, Sri Lanka and Vietman, that are subsequently exported to Canada or Mexico, but I am still unclear on why it it more difficult to claim drawback on these products than products exported […]

  • Duty Drawback – Russia

    Question: We have an inquiry from a company that imports from Russia (column 2) and then has exports to Canada and Mexico. I’m wondering if anyone from the group knows if this will be an issue. Answer 1: Much depends on what type of drawback (j1, j2, 1313p, manufacturing, etc.). if it is manufacturing, if […]

  • Duty Drawback – Unsold Product

    Question: Can unsold and returned merchandise from a retail store be used for drawback? Answer 1: Yes, as long as it is exported within three years of importation, and your Drawback program (you must have one) allows for it.

  • Retail Returns- Canadian Duty Drawback

    Question: Good afternoon, Is anyone familiar with any special requirements for Canadian duty drawback (refund of Canadian duties) on unused retail returns?  (Items were never sold to consumer, and pallet of product was never opened by retailer). I’m aware in the US, you can only receive drawback for items imported within the last 12 months […]