Rising appeal to claim the drawback
U.S. duty drawback is a widely used mechanism to reclaim duties, fees, and certain taxes on imported goods that are subsequently exported or destroyed. While always a popular instrument, with the combination of modernized regulations and a dynamic trade landscape, its appeal has increased considerably.
In 2016, with the implementation of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), drawback was modernized, increasing the potential return on investment (ROI) for many drawback claimants. However, along with TFTEA’s modernized regulations came additional compliance complexities that have to be navigated. Learning how to apply these new requirements to manage a duty drawback program became a priority with the imposition of the Section 301 tariffs on imports from China—when tariff rates skyrocketed seemingly overnight. Further, an economy in flux has made tariff management a crucial component of a long-term savings strategy.