The Right Procedures to Follow To Claim Duty Drawback
Duty drawback is related to refunding of 99% of the payment of the importers, exporters or the consignee parties if the goods are unused or faced some manufacturing problems prior to delivery. The parties associated with the import and export of the goods are entitled to receive certain product duties, fees collected on importing of goods and internal revenue taxes. The importers, exporters and consignee parties must know thoroughly about the procedure for claiming duty drawback so that they can get the full refund of their amount.
Procedure to Receive the Duty Drawback Claim
According to a survey by Statista, nearly 600 Billion US dollars of goods are being traded until the year 2017. The increasing trade volume may require imports and exports at a larger rate. Due to this, most of the times, the importers and exporters have to face the problem of unused, rejected or manufacturing products lying in their warehouses.
In order to claim, 99% of the refunds from the U.S. Custom Department, the parties need to hire an experienced broker who is well-versed with the procedure for claiming duty drawback. Here are few points that explain the procedure of claiming the drawback:
Submission of the Documents: In order to claim the duty drawback, one must possess the documents like entry summary form CF-7501, Certificate of Delivery CF-7552 and the commercial invoice in case of imports. An exporter requires following documents Bill of Lading, Commercial Invoice and the Export waiver if they are transferring that right to the importer’s party.
Identify the Ports to File the Claim: If the exporter and importer are abiding by the U.S. Customs rule, then they cannot file the claim just at any port of entry. They can file their duty drawback claim at Houston, San Francisco, Chicago and New York City.
Time of Filing the Claim: Under the procedure for claiming duty drawback, the parties are eligible for duty drawback claims on the unused and rejected goods within the three-year period. However, if they are filing the claim on the manufactured goods, then they can file a claim within the five-year period.
Electronic Submission: In case, the consignee parties are not aware of the claim refund procedure then they must hire a professional broker. They will electronically submit the claim amount bonds and related documents that will speed up the process.
Using Accelerated Option: The claimant party must use the quickened payment option that will provide the claim amount within 4 to 6 weeks after filing the documents. Here the parties or broker can use the CBP Form 301 that will ensure the quick payment to parties in comparison of nearly 12 to 16 months for a regular claim.
To sum up, the procedure for claiming duty drawback is a tedious and hassled process that requires updated knowledge of the existing laws. The parties must hire the services of an experienced broker who can manage the customs and documentation in an expert way. If you are looking forward to professional brokers, then hire the services of CITTA Brokerage Co. For more information and pricing, reach us at https://www.cittabrokerage.com/