Duty Drawback Brian London CEO American Drawback 250 Moonachie Road Moonachie, NJ 07074 (201)...

Duty DrawbackBrian London CEO American Drawback

250 Moonachie RoadMoonachie, NJ 07074(201) 478-4680

What is Duty Drawback?• Duty Drawback is the

recovery of US Customs duties paid on imported materials that are subsequently exported.

Types of Duty Drawback

• Unused DrawbackImport Duty Paid material which is

either exported or destroyedWithout being used in the US.

Incidental operations are allowed. Cleaning, inspecting and repackaging.

Methods Of Filing Unused Drawback

Direct Identification• Matching an export shipment

to a specific import entry (7501 w/commercial invoice)

Substitution • Matching exports and

imports by part numbers that are commercially interchangeable.

Direct Identification

• Parts or materials will be traced and matched by a serial number or unique lot number that will appear on both the import documentation and export documentation

Imported Gear Serial No. G34R5P4RT

Exported Gear Serial No. G34R5P4RT

Unused Substitution

• Imported Goods must be “commercially interchangeable” with Exported Goods.

Waiver of Prior Notice

Claimant must provide sample documentary evidence of proper records used in the ordinary course of business to support claims in the application

• Customs form 7501 w/commercial invoice

• Samples of business inventory movement

• Bills of Material or Lab records • Bills of Lading for US export• Any other business records that will

support the process

Unused Drawback Time Frames

Designated productDate of Import

Designated productDate of Export

Drawback Claim filed

Drawback Claim PaidRecords Kept

Manufacturing DrawbackImported Material/Components

are introduced into a manufacturing process.

A substantial transformation of the imported material / components results in a new and different article with a new name, use or character

NAFTA • Unused Drawback filed on Articles

Exported to a NAFTA country are limited to Direct Identification.

• Manufacturing Drawback for Non Originating goods must be filed on the lesser amount of duty paid on imported component/material and that of duties paid in the destination country of the finished US product.

Supply Chain DrawbackTM

Is there verbiage in your company’s purchasing agreements for drawback rights?

Exporter?Supplier?

How?

Who gets the money?

Drawback Record Keeping

The following is a reference list for records used to support the filing of a drawback claim.

Some may not be required depending on the type of drawback claimed filed.

• Bill of Material or Formula/Recipe

• Bill of Lading for US Export• B3 (Canadian Entry)• Pedimento (Mexican Entry)

• Drawback Entry• Import Entry• Commercial

Invoice• Purchase orders • Receiving Records• Inventory Reports