Beauty Brand Recoups $8.1M

Based in New York City, this beauty brand has built an international following through immersive customer experiences and a rapidly expanding global footprint over the last two decades. With operations involving both manufacturing and kitting (combining multiple products for export), the company has faced mounting costs from import tariffs as high as 29%.

When Tariffs Hit Hard, This Brand Hit Back

Prior to working with CITTA Brokerage, the company had no experience with duty drawback—a method of recovering tariff-imposed duties, taxes, and fees paid on imported goods that subsequently leave the U.S. However, the burden of the 25% Section 301 tariffs on Chinese imports introduced in 2017 plus 4% for plastics used in packaging catalyzed their interest. The brand signed on with CITTA in May 2024 and their first claims were submitted that December.

One of the client’s key goals was to strengthen its financial standing through strategic cost recovery. “Their primary concern was document accessibility due to their relatively new and evolving operations,” CITTA Drawback Manager Jerry Cunningham recalled. “Nonetheless, they were eager and highly motivated—particularly as end-of-year reporting to investors loomed.”

Brokering Cooperation Across Multiple Manufacturers

In the cosmetics industry, complexity abounds. Products may be exported as finished goods or bundled into promotional sets—a nuance that complicates claims under U.S. Customs and Border Protection’s ACE system. “CBP’s CATAIR standards demand precision—something few companies can manage without expert guidance,” Cunningham said. “This client’s situation was further complicated by reliance on nearly two dozen contract manufacturers (CMs), all of whom would have to cooperate for drawback filings.”

An important first step was securing power of attorney agreements with each CM to file the manufacturing ruling notices necessary for filing drawback.

“Brokering cooperation with contract manufacturers is vital to maximizing drawback returns for many beauty brands,” Cunningham said. “Failing to secure an agreement with a CM means we can’t file drawback on the goods they produce. Depending on volume, this could mean forfeiting several hundred thousand dollars.”

In just six months, CITTA successfully brokered cooperation from each of the client’s nearly two dozen CMs.

Tariffs In, Cash Out: The First $8M Win

Between December 2024 and April 2025, the company recouped $8.1 million in duties—$7.5 million of which came from a five-year lookback. The remaining $640,000 came from Q1 2025, with quarterly filings now a regular part of the client’s operations.

“We set a self-imposed deadline for delivering for this client,” said CITTA Brokerage CEO Scott Sorenson. “To ensure we kept our promise to the client to file by year’s end, three of our CITTAzens flew to New York City to work on site with the client’s export broker—who was overwhelmed at the time—to identify all the documentation necessary for CITTA to file drawback on their mutual client’s behalf.”

More Millions On The Way (And Faster, Too)

Given the new tariffs the White House has proposed in 2025, the client is projected to receive $2 million in drawback each quarter. “Part of our process was to apply for accelerated payment privileges from CBP, so this client is positioned to receive funds faster than competitors who are behind in developing a drawback program,” Cunningham added.

“By putting this program in place early and securing buy-in from stakeholders in such a complex manufacturing ecosystem, this client has a significant competitive edge in mitigating tariff impacts,” Sorenson noted.

Later in 2025, CITTA will start filing claims on goods that are imported and later directly exported without going through any manufacturing processes—a drawback type known as unused direct ID. “For obvious reasons, direct ID is less complex,” Sorenson said. “We started with manufacturing claims because that’s where the client would see the quickest return on investment.”

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