Fraudulent Claims Cleanup

Case Study

A manufacturer of engineered and forged metal products restored to good standing with Customs and realize healthy annual refunds.

Client

A manufacturer of engineered and forged metal products.

Challenge

The customer contracted with a duty drawback specialist specializing in the metal and manufacturing industry. As a heavy user of titanium, a valuable and high-duty product, the returns available were lucrative. However, the hired drawback firm was putting forth fraudulent claims unbeknown to their client. By falsifying certificates of delivery between firms, the same product was often “double-dipped,” and due to the confidentiality necessary for supply-chain drawback, the firms involved were not aware until the scheme was revealed through a criminal investigation.

As a result, the companies involved, including our future client, were ordered to pay back millions in returns that their service provider had fraudulently obtained without their knowledge. They would also be subjected to intense scrutiny should they want to pursue drawback refunds again.

    Solution

    J.M. Rodgers was brought in to identify and correct misfiled claims. After hours of evaluating the documentation for claims made by the previous service provider, J.M. Rodgers filed corrections with supporting documentation. In many cases, JMR sat with the customer during the audit process to represent them with Customs. J.M. Rodgers has consistently responded to the extra scrutiny due to our impeccable internal process for auditing claims, leading to a flawless program throughout the time that J.M. Rodgers has handled their account.

    Results

    The client has cleared up past liabilities from a fraudulent service provider and has returned to good standing with Customs. They now have an ongoing duty drawback project that can return healthy and compliant refunds yearly. A compliant drawback program allows this client to claim over a million dollars in previously unrealized annual refunds.

    Photo by Ant Rozetsky on Unsplash 

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    A Tradition of Excellence

    J.M. Rodgers Co., Inc. is a family-owned and operated business with a rich tradition of serving and providing unparalleled support to our valued customers. In operation since 1952, J.M. Rodgers Co., Inc. is a recognized leader in global logistics specializing in Customs Brokerage, Freight Forwarding, and Duty Drawback.

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    Find Out If You Qualify For Duty Drawback

     If you or your business imports and export goods to and from the United States, it’s possible that  you may qualify for duty drawback, which is a 99% refund on goods imported into the United States that are subsequently exported. Even if you don’t do both, you may still be able to qualify as long as importing and exporting happen along your supply chain.