Duty Drawback

Types of Duty Drawback

Duty Drawback for the Apparel Industry

UNUSED

Recover drawback on items that are imported, possibly subject to incidental operations in the United States before being exported or destroyed. Incidental operations include, but are not limited to, inspecting, testing, cleaning, and repacking.

Duty Drawback for the Apparel Industry

REJECTED MERCHANDISE

Collect drawback upon the exportation or destruction of imported merchandise which does not conform to sample or specifications, has been shipped without the consent of the consignee or has been determined to be defective at of the time of importation. 

Duty Drawback for the Apparel Industry

MANUFACTURING

Receive refunds on the duties paid on imported material that is used in the manufacture of a new or different article, when the finished product has been exported or destroyed.

Types of Duty Drawback:

Duty Drawback for the Apparel Industry

UNUSED

Recover drawback on items that are imported, possibly subject to incidental operations in the United States before being exported or destroyed. Incidental operations include, but are not limited to, inspecting, testing, cleaning, and repacking.

Duty Drawback for the Apparel Industry

REJECTED MERCHANDISE

Collect drawback upon the exportation or destruction of imported merchandise which does not conform to sample or specifications, has been shipped without the consent of the consignee or has been determined to be defective at of the time of importation. 

Duty Drawback for the Apparel Industry

MANUFACTURING

Receive refunds on the duties paid on imported material that is used in the manufacture of a new or different article, when the finished product has been exported or destroyed.

How The Duty Drawback Process Works

Step 1: Identify Opportunity

During our complementary consultation, we will learn about your company and strategize recovery efforts based on your unique business situation. Whether you are the importer, the exporter, or neither, we will assess the most effective way to recover duties paid. Try our Duty Drawback Calculator to see if a program would benefit your company today.

Step 2: Initiate Program

After we launch your tailored Duty Drawback program, we will begin collecting the necessary data. Our process is simple and clear. Your personal representative will compose all necessary applications to the standards for compliancy required for approvals.

Step 3: Generate Refunds

Your data will be formulated to fit our proprietary criteria and we will perform a series of internal audits to ensure integrity. The duty drawback claim will then be submitted to our operations department for processing and filing.

Step 4: Continuous Support

Once your Duty Drawback program is established, filing claims becomes streamlined. We will establish regularly scheduled data collection and filing protocol to ensure continuity. We will constantly review your imports for compliancy and examine your sourcing for new opportunities in order to maximize your refunds. 

How long will the process take?

Here's the typical timeline for Duty Drawback:

START

Documents Received

Once your program begins, we will work with the designated members of your organization to obtain the necessary information needed to apply for duty drawback.

4-6 Weeks

Application

  • 4-6 weeks to file the application.
  • 4-6 months for receipt of approval from CBP.
  • While Waiting for approval, we can begin to submit the claims.
2-3 Weeks

Filing of Claims

  • When ITM receives all documents, claims are filed in 2-3 weeks.
  • Documents may be submitted in electronic, paper, or other formats.
45 Days

Payment

With accelerated payment, Customs processes and issues refund check within 45 days of filing.

Did you know...

  • 301 Duties are recoverable using duty drawback
  • Duty Drawback is available even when you are not the importer or exporter 
  • You can claim drawback on duty paid products that are destroyed in the U.S.
  • A claimant is not limited to a program on Unused Merchandise, duty drawback is also available for Manufactured or Rejected Merchandise



Something to think about:

Duty Drawback Document

Eligibility

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