Monday, June 14, 2010

Duty Drawback – Don't Leave Money on the Table

(Roetzel & Andress - Craig A. Koenigs/Lexology)

Drawback is a refund of a customs duty, fee or internal revenue tax imposed by federal law on imported merchandise that may be claimed when the imported merchandise, or a product manufactured with the imported merchandise, subsequently is exported or destroyed under supervision of U.S. Customs and Border Protection (CBP).

It is estimated that several billion dollars of drawback claims go uncollected each year.

Generally, a drawback claimant will be entitled to a refund of 99% of the applicable duties, fees or taxes paid and will have up to three years, following exportation or destruction of the merchandise, to file a drawback claim. Therefore, a company is able to reach back and capture drawback on its past activities.

Drawback is a valuable tool that can help decrease your operating costs and improve your bottom line. Read more here.