Apparel Retailer Affected by NAFTA

Client

A leading designer and marketer of outdoor adventure apparel, hats, and accessories for men, women, and children.

Challenge

The client had an existing duty drawback program to recover Customs duties paid for the goods they imported and subsequently exported. However, their program was limited to claiming drawback only on exports to non-NAFTA countries. When they realized that their refunds accounted for only a small percentage of the duties they paid each year, they sought to partner with a drawback provider to research additional opportunities and provide an in-depth analysis of the legacy program. As a result, the customer asked J.M. Rodgers to develop further a drawback program that could maximize this client’s refund potential regarding exports to NAFTA-participating countries – Canada and Mexico. J.M. Rodgers was selected based on its:

• Knowledge of Unused Drawback regulations
• In-depth experience with apparel-specific drawback
• Technical expertise and flexibility
• High level of service

Solution

J.M. Rodgers worked with the client to review US Customs compliance requirements and develop the functional and technical specifications required to meet their business needs. JMR implemented a standardized approach to loading additional proof of export (B3 or Pedimento) and filed claims in accordance with our proven Unused Drawback claims process.

Results

The optimized duty drawback program brought tremendous savings to the company by effectively increasing the potential duty drawback recovery by 600%, a substantial financial gain within the first year of filing drawback with JMR.