Balkamp's Journey to Reclaiming Millions with CITTA
Balkamp, a subsidiary of Genuine Parts Company, specializes in automotive and industrial replacement parts. With the majority of its goods imported from countries like China, India, and Brazil, Balkamp’s operations are significantly impacted by international tariffs, particularly the U.S. Section 301 tariffs targeting goods made with foreign steel and aluminum — duties they can now reclaim to the tune of $50K per month by working with CITTA Brokerage.
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CHALLENGES AND INITIAL SETBACK
Balkamp’s Global Logistics & Trade Compliance Manager Ken Staab recalled that previous attempts to claim duty drawbacks — a process to reclaim duties paid on imported goods that were later exported — were insourced with the help of a consultant but eventually abandoned after frustrating interactions with U.S. Customs and Border Protection (CBP). The process, compounded by the intricate nature of international tariffs, regulations, and strict documentation proved too cumbersome, and nearly all claims were rejected.
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“This was a huge setback,” Staab said. “It took nearly a year before we could get a claim over to the U.S. customs agency. The regulations are terribly complex. If one thing is missing from your claim, they’re going to reject the entire thing. It just wasn’t worth the time and effort.”​​
COMPANY PROFILE:
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A subsidiary of Genuine Parts Company
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Established: 1936
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Headquarters: Indianapolis, IN
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Imports: China, India, Turkey, Brazil, Taiwan, Hong Kong, and other Southeast Asian countries
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Exports: Primarily to Canada
RECOUPED DRAWBACKS:
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$2.9 million in the first 11 months of working with CITTA
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$2.5 million from duties paid over the last 5 years
​CITTA BROKERAGE STEPS IN
Fortunately, a new Balkamp supply chain employee had heard about CITTA and their deep expertise in duty drawbacks.
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“This couldn’t have come at a better time,” Staab said. “With the 301 tariffs in place, I knew I needed to revisit the duty drawback process. I mean, 25% is a lot. That’s literally adding zeros on the end of what we could recoup.”
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According to Staab, CITTA offered a simplified approach to the complex customs process, including document collection, claims filing, and compliance assurance. Their performance-based payment model meant their success was directly tied to Balkamp’s financial recovery.
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ONBOARDING AND IMPLEMENTATION
“When you’re part of an organization with a sales volume of $22B per year, change can be difficult,” Staab recalled. “So understandably, we were cautious about moving forward, especially considering our limited success when we tried to go it alone.”
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CITTA’s methodical onboarding included weekly educational calls that clearly demonstrated the process and benefits of duty drawbacks, swiftly overcoming doubts. As Balkamp’s team recognized the financial advantages, their motivation and commitment to the project solidified.
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“Once our clients discover that the juice truly is worth the squeeze — once they see both the short- and long-term benefits — they’re invested,” said CITTA CEO Scott Sorenson.
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FINANCIAL RESULTS
The partnership with CITTA has had a dramatic and immediate financial impact: In the first 11 months alone, Balkamp returned $2.9 million to the business. As part of this, CITTA worked with Balkamp to go back five full years, revealing approximately $500,000 per year in unclaimed refunds — money that was previously left on the table due to the inefficiencies of past attempts.
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“You know the excitement of finding a $20 bill in a pair of pants you haven’t worn in a while?” Staab asked. “Well, that was us. Except it was $2.5 million.”
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IMPACT ON INTERNAL PARTNERSHIPS
Since they started working with CITTA, the current process of filing monthly claims has become so streamlined, Staab says his supply chain team is enjoying a newfound sense of collaboration with the finance department.
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“Being thought of as a mere cost center can be a lonely place,” Staab said. “Now that we’re helping identify and facilitate opportunities for duty drawbacks, my team is generating true financial value for the company. And when we’re looking at new suppliers from countries we haven’t worked with, we have a real seat at the table.”
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LOOKING AHEAD
Balkamp’s duty drawback process, despite its initial challenges, proved to be a significant financial lever for the organization. With CITTA’s help, Balkamp not only navigated the complexities of customs and tariffs, but also positioned itself to continue capitalizing on these processes, regardless of whether specific tariffs are renewed.
The flexibility offered by CITTA’s expertise allows Balkamp to adapt to changing regulations and market conditions, proving that the initial effort to establish a robust duty drawback process was indeed worth the substantial financial benefits.
