Claiming Unused Drawback on Exported Products

Are you getting your maximum refund of customs duty? Duty drawback is not just for duties paid on imported goods.

Non-Manufacturing Unused Drawback

There are two types of unused merchandise drawback:

  • Direct Identification Drawback
  • Substitution Drawback

Direct Identification Drawback

Direct identification unused drawback requires a direct link between the claimed exported merchandise and the identified duty-paid merchandise. This relationship can be established using a serial number, lot number, or accounting method. You can file a drawback claim if merchandise is exported or destroyed within five years from the date of import.

Substitution Drawback

Substitution unused drawback can be claimed when the merchandise that has been imported and then exported is unchanged and has the same 8-digit Harmonized Tariff System (HTS) code.

Other duties, taxes, and fees paid on imported merchandise can be refunded when any other merchandise is exported, as long as it is within five years and falls under the same eight-digit HTS classification.

Substitution Unused Drawback of Finished Petroleum Products

While 1313(p) claims are restricted to more limited time frames for filing drawback, they receive more liberal substitution drawback rules:

  • 1313(p) claims avoid the “lesser of” rule which provides that drawback may be calculated on the full value of the import, regardless of the exported value.
  • Qualified goods may be classified using either the current HTSUS or the 2000 HTSUS.

Supply Chain Opportunities

Drawback claims are not limited to just the importer or exporter. If you are part of the supply chain, there could be refunds available for you. Charter Brokerage can help you navigate your options.

Why Charter Brokerage?

Charter Brokerage will examine all drawback opportunities to optimize your drawback program. No other duty drawback specialists have the extensive knowledge and experience that Charter Brokerage can provide.

Our clients are our focus.

To learn more, contact us at: inquiries@charterbrokerage.net

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