Increasing Drawback Yield With Deep Knowledge & Expertise

Client

A major American chemical company is a large importer and exporter of petrochemicals.

Challenge

The client had an existing drawback program to recover duties paid with another duty drawback broker. However, they believed their program was not functioning at the highest possible level and that their current broker did not maximize the refund potential.

Their current program was focused entirely on the relatively small set of products they directly imported and then exported, matched on a part-level basis. Despite the small returns, the value of imported and exported chemicals surged, with many products subject to very high duty rates. Their current broker told them they could not file for further drawback claims without a direct part number match.

Solution

J.M. Rodgers evaluated their book of products and classifications next to their import and export flow. Upon close examination, we determined that the client was eligible to take advantage of a broader form of substitution drawback under section 1313(p), a subchapter of duty drawback law pertaining specifically to certain commodities classified under the petroleum derivatives chapters of the HTS. US Customs allows drawback claimants to match products for drawback at the 8-digit HTS level rather than by part number in this section. Because much of their product line fits within this range of classification, we were able to apply the majority of their imports and exports to this particular kind of substitution drawback.

Results

The client increased their annual yield on drawback returns by over 650%, pushing their total claims well above seven figures. This significantly increased their profitability and cash flow, contributing to their growth. Without J.M. Rodgers, this client likely would have lost an unknown multi-million-dollar refund opportunity.