Drawback & Tax Recovery Services

Charter is the leading provider of duty and tax drawback services in the United States. Charter files claims for more duty and tax recoveries than all other U.S. service providers combined. Our legal experience, planning skills, high-level expertise and in-depth experience are simply unmatched by any other service provider. Our services include all matters necessary to establish and run a sophisticated drawback program that will maximize recoveries, including business review and identification of opportunities, planning and optimization, documentation, claim filing and audit support.

With its unmatched knowledge and experience, Charter ensures that its clients recover all duty and tax drawback to which they are entitled under the law.

Charter has the expertise to identify drawback opportunities that are available only in cooperation with suppliers, customers, traders or others in the supply chain and are often overlooked.

Charter worked with CBP to draft the language of the current drawback law and its several amendments and we participated in the development of the current drawback regulations.

We led the legislative initiatives that resulted in

• the recovery of taxes and fees in addition to duties; and
• the adoption of the eight-digit tariff substitution rule for petroleum and chemical products.

We are working with CBP, industry groups and congressional staff on legislative changes that will enhance benefits and make the administration of the drawback law more efficient.

Set forth below are brief summaries of the various types of duty and tax drawback related to petroleum products, petrochemicals, chemicals and plastics.

Petroleum, Petrochemicals, Chemicals and Plastics – The provision of the drawback statute that is most significant to Charter and its clients is subsection (p), the so-called petroleum and chemicals derivatives drawback section (see 19 U.S.C. 1313(p)). Subsection (p) permits the recovery of customs duties (and, in certain cases, taxes and fees) paid on importation of goods classified in specified eight-digit descriptions of the Harmonized Tariff Schedule when matched against exports of the same classifications, provided that the exports occur within 180 days after import. This section applies to petroleum, petrochemical, chemical and plastics products and, because it permits direct and indirect substitutions, Charter is able to identify potential recoveries often overlooked by other service providers.

Unused (Non-Manufacturing) Drawback This provision of the drawback statute (19 U.S.C. § 1313(j)) allows for a refund of duties, taxes and fees on imported merchandise exported in essentially the same condition. Imports can be matched to exports by direct identification or by substitution (i.e. the export is “commercially interchangeable” with the import). This type of drawback can apply to all types of imports, and the export must occur within three years after the import.

Manufacturing Drawback These provisions of the drawback statue (19 U.S.C. § 1313(a) and (b)) allow for a refund of duties (no taxes and fees) paid on imported merchandise based upon the production and export of articles from imported, duty-paid merchandise or similar (“same kind and quality”) domestic merchandise, which is substituted for the imported merchandise. This type of drawback can apply to a variety of manufacturing operations and various time limits apply.

Drawback is a complex area that contains a vast array of rules, regulations and limitations. As the nation’s leading drawback service provider, Charter assists clients in maximizing their drawback in a compliant and efficient manner.

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