Client
A multinational automotive manufacturer importing vehicle components and exporting finished products worldwide.
Challenge
The client faced increasing costs and inefficiencies due to unoptimized customs brokerage and duty drawback processes:
- Missed Duty Drawback Opportunities:
- The company was not fully recovering eligible duties paid on imported components later exported as part of finished vehicles.
- Lack of integration between customs brokerage and drawback teams led to missed claims and lost refunds.
- Complex Documentation Requirements:
- Managing customs declarations and duty drawback claims required extensive, accurate documentation, creating administrative burdens.
- Inconsistent data sharing between brokerage and drawback service providers increased errors and delays.
- Compliance Risks:
- Incorrect filing of duty drawback claims posed the risk of penalties and audit scrutiny from U.S. Customs and Border Protection (CBP).
- Misalignment between import/export data created reconciliation challenges.
Solution
The client partnered J.M. Rodgers to combine customs brokerage and duty drawback services under one integrated solution, creating operational synergies:
- Centralized Data Management:
- Combined brokerage data (import entries) with duty drawback claims to create a single, comprehensive database.
- Automated reconciliation of imports and exports to identify all eligible drawback opportunities.
- Integrated Workflow:
- Customs brokers ensured accurate HS classifications, valuation, and duty payments during import declarations.
- Duty drawback specialists accessed the same data to streamline and expedite drawback claim filings.
- Automated Duty Drawback Filing:
- Implemented a technology platform that connected customs brokerage systems with duty drawback claims.
- Real-time reporting allowed quick identification of eligible claims and faster submissions to CBP.
- Compliance Alignment:
- Aligned drawback claims with import and export documentation to ensure compliance with CBP’s Part 191 drawback regulations.
- Conducted proactive audits to identify errors and prepare for potential CBP reviews.
- Staff Training and Collaboration:
- Trained internal teams to understand the connection between brokerage and drawback processes.
- Established cross-functional collaboration between brokerage and drawback teams to improve data accuracy.
Results and Benefits
Outcome
- Increased Duty Refunds:
- Recovered an additional $2.5 million annually in duty refunds by identifying previously missed opportunities.
- Accelerated refund timelines by 40% due to integrated workflows and faster claim submissions.
- Operational Efficiency:
- Reduced administrative workload by 30% through automated reconciliation and centralized data sharing.
- Eliminated duplicate processes between brokerage and drawback teams, saving significant time and resources.
- Improved Compliance:
- Achieved 100% compliance with CBP regulations for both customs declarations and drawback filings.
- Avoided penalties by ensuring alignment between import/export documentation and claims.
- Cost Savings:
- Reduced costs associated with manual reconciliation and missed claims.
- Maximized cost recovery, improving the company’s bottom line.
- Enhanced Visibility and Reporting:
- Real-time dashboards provided clear visibility into duty payments, eligible refunds, and claim statuses.
- Improved audit readiness with consolidated and accurate data records.
Key Takeaways
- Combining customs brokerage and duty drawback services under a single provider creates synergies that streamline processes, reduce errors, and maximize refunds.
- Centralized data management and automated reconciliation ensure no eligible refunds are missed while maintaining full compliance.
- Integrated workflows significantly improve operational efficiency and deliver measurable financial benefits.