Question 1

What does Duty Drawback mean?

Accepted Answer

Duty drawback is a refund of customs duties (and sometimes taxes) paid on imported goods that are subsequently exported, or used in the manufacture of goods that are then exported. The principle: since duty is charged on goods imported for home consumption, goods that never enter home consumption should not bear the duty. In the US, drawback is authorised under 19 USC §1313 and administered by CBP — there are several types including direct identification drawback (same goods exported), substitution drawback (goods of the same kind and quality substituted), and manufacturing drawback (imported goods used to make an exported product). Up to 99% of duties paid may be recovered; CBP retains 1% as a processing fee. Claims must be filed within 5 years of importation. The EU customs warehousing and inward processing regimes provide similar benefits prospectively (duty suspension rather than retrospective refund).

Question 2

Duty drawback?

Accepted Answer

Duty drawback is a refund of customs duties (and sometimes taxes) paid on imported goods that are subsequently exported, or used in the manufacture of goods that are then exported. The principle: since duty is charged on goods imported for home consumption, goods that never enter home consumption should not bear the duty. In the US, drawback is authorised under 19 USC §1313 and administered by CBP — there are several types including direct identification drawback (same goods exported), substitution drawback (goods of the same kind and quality substituted), and manufacturing drawback (imported goods used to make an exported product). Up to 99% of duties paid may be recovered; CBP retains 1% as a processing fee. Claims must be filed within 5 years of importation. The EU customs warehousing and inward processing regimes provide similar benefits prospectively (duty suspension rather than retrospective refund).

Question 3

Import duty refund?

Accepted Answer

Duty drawback is a refund of customs duties (and sometimes taxes) paid on imported goods that are subsequently exported, or used in the manufacture of goods that are then exported. The principle: since duty is charged on goods imported for home consumption, goods that never enter home consumption should not bear the duty. In the US, drawback is authorised under 19 USC §1313 and administered by CBP — there are several types including direct identification drawback (same goods exported), substitution drawback (goods of the same kind and quality substituted), and manufacturing drawback (imported goods used to make an exported product). Up to 99% of duties paid may be recovered; CBP retains 1% as a processing fee. Claims must be filed within 5 years of importation. The EU customs warehousing and inward processing regimes provide similar benefits prospectively (duty suspension rather than retrospective refund).

Question 4

Customs drawback?

Accepted Answer

Duty drawback is a refund of customs duties (and sometimes taxes) paid on imported goods that are subsequently exported, or used in the manufacture of goods that are then exported. The principle: since duty is charged on goods imported for home consumption, goods that never enter home consumption should not bear the duty. In the US, drawback is authorised under 19 USC §1313 and administered by CBP — there are several types including direct identification drawback (same goods exported), substitution drawback (goods of the same kind and quality substituted), and manufacturing drawback (imported goods used to make an exported product). Up to 99% of duties paid may be recovered; CBP retains 1% as a processing fee. Claims must be filed within 5 years of importation. The EU customs warehousing and inward processing regimes provide similar benefits prospectively (duty suspension rather than retrospective refund).

Question 5

Manufacturing drawback?

Accepted Answer

Duty drawback is a refund of customs duties (and sometimes taxes) paid on imported goods that are subsequently exported, or used in the manufacture of goods that are then exported. The principle: since duty is charged on goods imported for home consumption, goods that never enter home consumption should not bear the duty. In the US, drawback is authorised under 19 USC §1313 and administered by CBP — there are several types including direct identification drawback (same goods exported), substitution drawback (goods of the same kind and quality substituted), and manufacturing drawback (imported goods used to make an exported product). Up to 99% of duties paid may be recovered; CBP retains 1% as a processing fee. Claims must be filed within 5 years of importation. The EU customs warehousing and inward processing regimes provide similar benefits prospectively (duty suspension rather than retrospective refund).

Duty Drawback

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