San Francisco, CA -- (SBWIRE) -- 01/08/2014 -- According to calculations, anywhere between 70-90% of the money that could be refunded through a duty drawback claim is unclaimed each year.
Even though duty drawback law was passed by the first United States Congress in the late 1770's as a way to promote and add incentive to international trade, almost 250 years later, the vast majority of American companies still have no awareness about duty drawback and even if they have heard of it, it is a safe bet that companies have no idea how to assess their drawback potential.
About Duty Drawback
Duty drawback generally falls under one of three provisions: Unused Merchandise, Manufacturing, and Rejected Merchandise. Regardless of the methodology being used to file drawback claims, a company must submit an application that needs to be approved by Customs before it is possible to proceed with drawback filings.
In a nutshell, when a company Imports goods into the United States, they may pay duties on the merchandise imported depending on its classification. This amount is shown on each line of the Import Entry Summary and is based on a percentage. After the goods are received into the company's inventory, drawback becomes possible if these goods are either used in a manufacturing process and the manufactured item is Exported to another country. Or if the Exported merchandise is deemed commercially interchangeable with the Import (i.e. same product), that may also create a drawback scenario. There is also an opportunity to recover duty drawback on Imported merchandise that has been declared substandard and subsequently gets destroyed or returned. MPF and HMF fees are also recoverable.
There is a lot involved in the drawback process and it is unrelated to the familiar process of filing taxes, which is why it is important to outline the process in a straightforward step-by-step guide.
About the Resource Site
The information resource for Duty Drawback was launched in an effort to increase awareness of duty drawback by presenting it in a manner that can be clearly understood by anyone that might have interest in the pursuit of duty refunds.
The numbers representing this missed opportunity for companies is alarming. There is no reason to continue to pass on money that we are entitled to.
For more information about duty drawback, please visit: http://duty-drawbacks.com
Duty Drawback Information Resource
Location: San Francisco, California