Client

A major American chemical company and 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 did not believe their current broker maximized the refund potential.

Their current program was focused entirely on the relatively small section of products they directly imported and then exported matched on a part-level basis. Despite the small returns, the value of the imported and exported chemicals surged, with many products having very high duty rates attached. 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 sub-chapter 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 on an 8-digit HTS level vs. the part number within this drawback section. Because much of their product line fit 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 of drawback returns by a rate of over 650%, pushing their total claims well above seven figures. This significantly increased their profitability and cash flow and contributed to their growth. Without J.M. Rodgers, this client likely would have lost an unknown multi-million-dollar opportunity for refunds.