Harnessing the Duty Drawback rules for expanded savings

This article addresses duty drawback planning that can result in significant benefits to importers and exporters.

Andrew Siciliano

Andrew Siciliano

Partner, Trade & Customs Lead, KPMG US

+1 631-425-6057

On February 24, 2016, the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) was signed into law. The primary goal of the TFTEA is to encourage international trade through the simplification of U.S. trade regulations. In particular, duty drawback (drawback), a long-standing yet complex trade mechanism allowing for duty refunds on goods imported to the U.S. and subsequently exported, will create opportunities for broader qualification through the easing of product substitution rules, a simplified filing time frame, and modernized record-keeping requirements.

These new changes come at a time of further automation of the drawback process for United States Customs and Border Protection through the Automated Commercial Environment, and will transform the way claimants manage their duty drawback programs in the future.

As new U.S. duty drawback regulations will go into effect on February 24, 2018, what can companies do to prepare? This article addresses strategic and transactional planning that can result in significant benefits to importers and exporters, and can reduce risk through processes not captured in current controls.

Harnessing the simplified Duty Drawback rules for expanded savings
Remember that time when your goods were held at the port, and your staff rushed the paperwork to Customs, only to find you had declared an incorrect classification, valuation, or preferential origin? Or that time when a review uncovered systemic noncompliance errors that required a disclosure and payment of duties owed? We do and would prefer not to see it again.
Global edge: KPMG’s Trade & Customs Services
If your company buys, sells, or manufactures products in multiple countries, you know that establishing and maintaining efficient cross-border operations poses a complex challenge. The dynamic global environment—with shifting regulations and trade policy as well as variable economic, market, and competitive forces—compels global companies to continually adapt to changing rules.

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