Duty Drawback Refunds: The Most Essential in International Trade
The duty drawback is necessary in international trade and business. Every business house engaged in such trade does require knowing the complete basics of duty drawback. It is worthwhile to mention here that not all duties, which a trader pays during loading and unloading of shipment go to the government. In fact, the very government provides some legal framework and methodology to claim the same.
For expert duty drawback refund and further processing, businesspersons should immediately contact experienced and well-reputed brokerage firms having experience in dealing with these issues. For businessmen, each penny count and it is when the service of brokerage consultants comes in. They are ever ready to help the traders.
Duty Drawback, Meaning and Explanations
Drawback is a legal process through which a trader may get refund or waiver in part or full of customs duties collected on importing goods for exporting them. A trader has to make a claim for refund in a tacit manner to get the same approved by the customs authorities at the earliest. Brokers and consultants are apt for this job as they have enormous experience and knowledge in this field.
Duty drawback refund rule is in force since 1980. On an average, 99% of duties and taxes collected from the traders are refunded when he exports the same within three years of goods entering inside the US territory. It is essential that all legal formalities are fulfilled so duty drawback claims should be always filed by an expert broker on behalf of his client.
Duty drawback is essential as it encourages export trade and makes the products globally competitive with its price. The latest news confirmed that in the United States, imports of goods valued below $800 don’t need any payment of duties.
However, if the value increases, a trader has to pay the duty first and then make a claim for refund of the duties. Drawback provision is legally mentioned in Section 313(a) of the Tariff Act, 1930.
Types of Duty Drawback
1) Direct Identification Manufacturing: Any product made in the US with imported materials for exports could claim a Duty Drawback up to 99%.
2) Substitution Manufacturing: When imported merchandises with other stuff are used for manufacturing to export, but gets destructed then a trader can claim duty drawback up to 99%.
3) Rejected Merchandise: When a consignee rejects the shipment, then again a trader could claim up to 99% of the duty waiver.
How to Claim Duty Drawback Refund?
The entire duty drawback refund process has to be transparent and as per the law. A trader or consultant (on his behalf) has to file a claim for duty drawback. Just like any other legal formalities, the entire process is lengthy and time taking.
We, from the House of Citta Brokerage, are a well-established consultant and broker rendering such types of consultancy services to our clients. We process all such claims in a meticulous manner and get approval from the authorities at the soonest. Just hand us all the relevant documents and see how quickly we get your claim approved for duty drawback refund.