Duty Drawback is a refund provided to the importers and exporters on the custom or fee provided to the U.S. Customs. These duties are paid when the goods are imported and exported respectively from the U.S. The Duty Drawback can be claimed under the customized programmed of the CBC.
In many cases, people receive 99% of the duty drawback claim from the Custom Authority. The receiving of a claim will help in the reduction of prices of the products. The importers must take the services of the reputed firms for acknowledging about the procedure for claiming duty drawback.
What is the Right Procedure to Claim Duty Drawback?
There are many types of Duty Drawback claims provided under various sections by the U.S government. The Manufacturing Drawback rules are provided under Section 313(a) of the Tariff Act in the year 1930. Then, there is substitution manufacturing whose rules are provided under Section 313(b) of the Tariff Act.
The Duty Drawback was established in the year 1789 and until now, there have been many amendments made in the procedure for claiming duty drawback. Here are few steps involved in this procedure so that the importers can get their claim back:
Possession of the Goods: At the time of carrying import and export, the importer or the exporter whosoever is having the possession of materials can apply for the Duty Drawback claim. There are varied categories of Drawback claims and the claimants will receive the claim accordingly. However, in most of the cases, the claimant receives 99% of the goods value.
Endorsement from the Exporter: Usually, the exporter is a person who can receive duty drawback claim from the Customs Authority. Under the procedure for claiming duty drawback, if importer possesses endorsement from the exporter then he can claim the Drawback.
Taking the Services from Right Firm: The changing government has changed Duty Drawback Claim procedure and rules until the present time. It is important to keep abreast with the right procedure to get the full claim. For this, one must take the services from a reputed firm that can help a person with the documents and other procedural work.
Attaching Right Documents: The importer has to attach the documents like Entry Summary or CF 7501, Certificate of Delivery or CF 7552, which is in lieu of the CF 7501 and the Commercial Invoice. The exporter needs to submit documents like Bill of Lading, Export Waiver that is provided to the importer to claim the drawback and Commercial Invoice.
The person can claim Duty Drawback for the unused products, manufactured products or the rejected products by the buyers. The importer and exporter must possess a right type of knowledge to get requisite claim from the government.
The procedure for claiming duty drawback is not difficult if the claimant has full knowledge of the documents and right procedure. One can get required information about Duty Drawback Claim from the professionals of CITTA Brokerage Co. People can reach out to us here.