What is drawback? Profits to Your Bottom Line  
In simple terms, duty drawback is the recovery of 99% of the import duties paid on imported merchandise that is subsequently exported (“unused drawback”) or used in a manufacturing process and that finished article is exported (“manufacturing drawback”). CBP has published numerous publications and rulings on drawback; however, this information does not necessarily address many nuances to the drawback regulations.

Technical issues to consider when claiming drawback include, but are not limited to:

  • Identification of duties eligible for drawback
  • Import, inventory, financial and export records
  • Legal entities and company organization
  • Product specifications to determine same kind and quality or commercial interchangeability
  • Substitution
  • Possession
  • Approved Accounting practices
  • Basis of claim
A Systems Approach to Duty Drawback™