Duty Refund Opportunities from Destroyed Goods, What You Should Know?
Many businesses around the U.S. have an amazing product, a booming business model, and an awesome customer base. Then one day, out of nowhere, a hurricane hits, a fire rages or maybe it could even be something as simple as your product having defects upon import or manufacture (where Duties or IR Taxes apply).
Although sometimes it may feel like all is lost, here at CITTA Brokerage Co. (CBC) we tend to help shed some serious light at the end of the tunnel through our Drawback "Destruction of Goods Program."
So, let's go ahead and say maybe you've been hit by a disaster and part of your products are ruined. Prior to your discarding of those goods, you will need to identify them specifically and gather the supporting documentation accordingly. That means that if the products arrived via import then you would need a Commercial Invoice, Packing Slip and Entry Summary.
If it was a product that was manufactured in the U.S. that is subject to Internal Revenue Tax (IR Taxes), then you would need to provide us with your production runs of the product and the support documents where the IR Taxes were paid. Now that you have been able to do so on either circumstance, you would then contact us as your Customs Broker to prepare the appropriate documentation for Customs review.
REMEMBER, all of these things will HAVE TO HAPPEN PRIOR to the final destruction of the goods.
Then, as your Drawback Broker, we would notify Customs on your behalf that you have qualifying merchandise for Destruction. Upon this request, then Customs would work with us to be able to determine qualifying product and amounts in value available for drawback refund.
For those qualifying companies who are already our clients, and already have a full Drawback program in place, we can make claims for the Destruction under Accelerated Privileges and the refunds can be made within and approximate two month time frame. Without Accelerated Privileges though, you can expect refunds anywhere from twelve months after liquidation or more.
So, if this makes you feel just a little bit better in the midst of the chaos, then allow CBC to implement a program to help you claim revenues back on goods that are set aside to be destroyed. Don't let your money to waste with your product. Help your revenues to pay for the new product we know you have coming down the pipeline.
If you want to have some help with a Destruction program, then go ahead and give us a call. We like to chat! Contact us HERE.