Client
A large manufacturer specializing in lawn mowers, snow blowers, and irrigation systems for commercial, residential, agricultural, and public sector markets.
Challenge
When this manufacturer decided to switch from its long-time drawback provider to J.M. Rodgers (JMR), the initial transition appeared routine. However, as JMR began a comprehensive review of the account, it became evident that the client’s previous provider had only tapped into a fraction of the potential refunds. JMR recognized an opportunity to significantly increase drawback claims through advanced data management and a refined approach to component analysis.
Solution
JMR implemented a strategic overhaul of the client’s duty drawback program, leveraging our expertise in data extraction, classification, and analysis to maximize refund potential. Key areas of focus included:
- Comprehensive Data Extraction and Management
JMR has the capability to handle large-scale data, pursuing all export activities rather than selective ones.
We utilized complete Bills of Materials (BOM), detailing all components instead of focusing on selected parts.
Data feeds were gathered for all imports, ensuring no eligible item was overlooked. - Precise HTS Classification for All Components
By accessing our internal HTS (Harmonized Tariff Schedule) database, JMR classified all parts accurately, including domestically sourced items, which maximized eligibility for drawback claims. - Detailed BOM Component Weight Conversions
For parts requiring weight-based classifications, JMR converted units to kilograms using internal databases, filling in gaps where weights were previously missing to optimize drawback. - Multi-Level BOM Analysis for Optimal Drawback Value
Test claims were performed to assess whether higher drawback values could be achieved through parent or child components of multi-level BOMs.
Based on findings, BOM formats were adjusted to maximize the client’s drawback potential. - Integration of ACE Reports for Import Completeness
JMR utilized ACE (Automated Commercial Environment) reports to ensure all import data was gathered from brokers, securing a comprehensive dataset for drawback. - Post-Claim Analytical Review
In-depth reports were generated to identify the HTS numbers yielding the highest drawback returns, as well as those with potential for future claims, laying a strong foundation for ongoing program optimization.
Results and Benefits
Prior Performance
The client’s previous provider averaged $350,000 annually in drawback refunds.
JMR’s Impact: Within a three-year cleanup period, JMR recovered over $5 million in refunds.
Future Projections
With JMR’s program fully implemented, the client now expects to claim between $1 million and $1.5 million annually in refunds, a dramatic increase from prior results.
By implementing a data-driven approach and rigorous process improvements, JMR was able to unlock significant additional value for this client, positioning their drawback program for long-term success.
