Drawback

Questions and answers about  Drawback

  • Duty Drawback

    Question: Many of our items have the 25% China duty.  We export these items to Canada and Mexico.  We invoice the MEX/CAN buyer for the goods and issue a separate invoice for the 25% duty.  We are doing an analysis to determine the duty refund for the last four years and wondering if the 25% […]

  • Unused Merchandise Duty Drawback

    Question: Is there a best practice for obtaining export documentation or B3 for Canada, regarding shipments where you are not the exporter of record? The information would be needed for unused merchandise duty drawback. Answer 1: You only get an import reduction if you export. So therefore you SHOULD be the Exporter of Record. When […]

  • Substitution Same Condition/Unused Merchandise Drawback

    Question: Curious if anyone knows why items imported from non USMCA countries such as Japan, Germany, China, etc., same 10 digit HTS code Substitution Same Condition/Unused Merchandise Drawback cannot be claimed if exporting unused to Canada or Mexico? I’d like to know how exporting to Canada or Mexico is different than exporting to any other […]

  • Duty Drawback

    Question: A customer of ours reached out to us about using our import records to claim duty drawback as we sell them our foreign sourced materials which they use in the manufacture of their goods.  They are using a drawback provider who would manage and submit claims.  We do not want to provide them with […]

  • Unused Merchandise Drawback

    Question: Importer has too much inventory that they cannot sell. Goods imported from China. Can they file for drawback under the “unused” merchandise provision, if they destroy the merchandise? Answer 1: Good afternoon,If you destroy the inventory, you can claim duty drawback.   We recommend offering customs to supervise the destruction.Thank you and Happy Holidays!Ruth GirmscheidPresident, […]

  • Vietnam Duty

    Question: We are shipping foreign raw materials to Vietnam to be used for manufacturing in Vietnam.  We are being charged duty on the import.  Does Vietnam offer drawback or a duty-free import program, if raw materials will be exported as part of the finished goods? Answer 1: Your VN customs broker should know this answer. […]

  • Unused Substitution Drawback

    We are interested in claiming substitution drawback on unused merchandise.  The HTS 8421.21.0000 qualifies for substitution. My question to the membership is, what is the proper process to determine an “import value” for something that is not imported but exported? We manufacture many of the items under this HTS code in the US that we […]

  • Errors with duty drawback

    QUESTION: I continue to get error code F562 (INVD GOODS VAL/UNIT) on my drawback report.  It seems to be on two specific commodity codes…sometimes it takes it but most of the time it gives me the error. I am using the information on ACE (qty and value)…with the exception of additional tariffs as I know […]

  • US DRAWBACK SCENARIO

    QUESTION: When audited by US customs regarding drawback, are the following documents acceptable proof of a valid claim.  This is not manufacturing drawback, we ship product initially imported into the US, as is, to Canada and Mexico with no advancement in value when in the US: PO to foreign supplier 7501 and 3461 Invoice from […]

  • DRAWBACK RULING TIMELINES

    QUESTION: For those who have been submitting application to receive a manufacturing drawback ruling, how long has it been taking on average to hear back from CBP? I have heard that they are backlogged and it’s taking half a year or more to process rulings. Is this still true? =========== Answer: We are going on […]

  • Duty Drawback for Destroyed Goods

    QUESTION: I have a question that I am hoping you can help me with or guide me in the right direction. We had a product that was inspected and held by the CPSC upon entry with a stop sale being issued. After much consideration and reviewing the requirements to make the product conform to the […]

  • DRAWBACK CONTRACT LANGUAGE

    QUESTION: Does anyone in the membership use specific drawback language in their contracts to ensure domestic customers provide transfer of rights and export documents, as well as for routed exports for international customers?  We have issues with customers and the customer’s freight forwarders providing documentation and was wondering the best way to hold them accountable. ************** Answers: You […]