How an Importer of Yogurt Recouped Almost One Million Dollars

This case study demonstrates companies can claim duty drawback on a product upon it’s destruction with the appropriate supporting documentation:

The Challenge:

An American company partnered with a German-based yogurt manufacturer to test the product’s potential in the U.S. market before investing in a domestic production facility. To do this, the U.S. company imported millions of dollars’ worth of yogurt, incurring a 17.5% import duty on the shipments. While much of the product was distributed and sold, a significant amount expired in their temporary storage facility before it could reach consumers.

The outcome was highly beneficial:

• Over $850,000 in duty refunds were recovered due to ITM’s expert handling
• The importer’s internal team was able to delegate the entire drawback process, allowing them to focus on launching
  their new U.S. production facility
• The successful collaboration created a streamlined, profitable program that strengthened the company’s long-term U.S. market strategy
  

This case underscores the broader opportunities available through duty drawback programs. By leveraging the option to claim drawbacks on expired and ultimately destroyed inventory, the importer was able to recover substantial funds—capital that could be reinvested directly into expanding their U.S. operations.