Duty Drawback is a refund of internal and external taxes that are collected on the import of certain goods. Since 1789, the government in the US has allowed importers to receive a refund of 99% on the customs duty. This was done to promote domesticated production and promote export trade.The recent changes will be introduced in Drawback Claim in February 2018. Under the Trade Facilitation and Trade Enforcement Act, the importers need to prepare themselves for the newer rules to ensure a maximized claim on Duty Drawbacks.Here are some of the important pointers that throw light on the procedure of getting a claim on the Duty Drawback:
Submit Essential Documents
The importers need to submit numerous documents for receiving Drawback Claim from the authorities. It is important to organize these documents in the right way in order to access them easily and in a quick manner. The documents to be submitted include:
The Entry Summary (CF 7501)
Commercial Invoice of imported goods
The Certificate of Delivery (CF 7552) is used to document essential transaction related to imported goods for CF 7501. This provides confidentiality of the information.
Drawing Duty Drawbacks on Unused Merchandise
If the importer is importing goods in a single shipment, and they qualify for unused goods drawback, then one has to submit a waiver to the customs authorities. The importers have to give information on the export of these goods. For future exports, the importer needs to file a ‘waiver of prior notice’ that provides them 3 years to file the Drawback Claim. Here importer needs to notice that they have to keep all the documents related to three years after they receive their claim. Under the new law, an importer can take the claim within a period of 5 years too.
Getting Authority from the Intermediate Consignee
An exporter is an initial person who claims the drawback, but importers can also take the claim if they have an endorsement from the exporter. It should assign that importer has a right to claim the duty drawback. The importer must possess
Acknowledge of Payment Process
The usage of an electronic submission process will fetch the claim faster to the importers. The accelerated payment system provides payment of the claim within 4 to 6 weeks from the date of filling. For a regular claim, it will nearly take 12 to 16 months. While exercising the accelerated payment system, the claimant has to submit a duty drawback bond (CBP Form 301) to the Customs. This can be a continuous bond applicable to all the shipments or a single entry bond.
To sum up, it proves beneficial for the importers or exporters whosoever is having the Certificate of Delivery to receive the claim. However, lesser people apply for the Drawback Claim because they are not aware of proper documentation and changed procedures. People can take the help from CITTA Brokerage Company that provides professional help from the beginning until the person receives a claim. For more details, reach out to the Company at https://www.cittabrokerage.com/.