What is drawback
Drawback is a refund of certain duties paid on imported merchandise when the merchandise is subsequently exported either unused or having undergone a manufacturing process.
Who is eligible for drawback?
Does your company:
- Export merchandise of a foreign origin
- Manufacture goods with foreign components and then export them
- Sell foreign merchandise and/or U.S.-made goods manufactured with foreign components to a domestic company that exports them
If you answered yes to any of the above, you are a candidate for drawback.
What are the benefits of drawback?
A duty drawback program allows U.S. companies to take advantage of economical foreign materials, and uses U.S. labor to produce products for export, creating jobs, increasing company revenue, improving cash flow, and enhancing global competitiveness.
Can drawback be claimed on past exports?
Yes. A company can retroactively claim drawback on exports shipped in the past 3 years.