Mandatory Requirements for Drawback
What is duty drawback? The importer and exporter need to know many relative things regarding this particular term. Duty Drawback is concerned with 99% of the refund the importers or exporters get on the customs duties. Here, the claimant party can be the importer, consignee or the exporter. The party needs to possess important documents before making a claim for the Duty Drawback. Here, the parties must be aware of the prevalent laws that are made by the U.S. government agencies concerning the customs laws.
Important Requirements for Availing the Duty Drawback
If one is not aware of what is duty drawback and its requirements then one needs to take the help of experienced broker who is well-versed with the present Drawback Claim law. The parties need to acknowledge these mandatory requirements while going with the newer laws:
The drawback period is of five years that starts from importing of the products to the U.S. until the claiming of Duty Drawback.
The Duty Drawback Claims are matched based on the ‘HTS Substitution’ that is of eight digits. However, if this substitution starts with the word ‘other’ then it is matched based on ten digits ‘HTS Classification’.
The three year time period is set for the liquidation of a Duty Drawback Claim.
Here, the party who is in the official possession of the goods and requisite documentation forms can claim the Drawback.
Even the importer can get Duty Drawback Claim if he carries an ‘endorsement’ from the exporter that he can receive 99% of the claim amount.
Significant Types of Duty Drawback
To get a real insight of what is duty drawback and how to get the claim on varied goods, a person should be aware of the types of Duty Drawback that are prevalent. Few of them are:
Manufacturing Substitution Drawback Claim - According to Title 19, if in any case, the goods are destroyed or exported before use then the importer is responsible for getting 99% of the claim amount. It is just immaterial to know whether the destroyed or exported products are from domestic or imported merchandise.
Merchandise that is Unused - The parties can avail Duty Drawback if the imported products remained unused and after that destroyed or exported under the Customs Regulation.
Direct Identification of Manufacturing Goods - If the products are manufactured in the United States of America with the help of imported material and if in case, they are destroyed here or exported even then the claimant gets a Duty Drawback.
Rejected Products - In this case, the manufactured products are rejected or destroyed because it does not suit the specifications or material is exported without the consent of the parties. Here, the claimants are eligible for getting nearly 99% of the claim amount on the rejected products.
Overall, what is duty drawback or its requirements for the consignee? It is vital to know about the necessary steps and parties can take the services from eligible brokers to update themselves with newer laws. One can take the support for Duty Drawback Claim from CITTA Brokerage Company. For more details, one can reach out to them through https://www.cittabrokerage.com/.