Client

An electronics manufacturing company.

Challenge

A client came to us and asked if we could help them find a way to get duty refunds on components they had imported from Europe that had been ruined due to water damage. Normally, the client does not qualify for drawback as they only sell their components domestically, but due to the material being damaged they wanted to return the products back to the vendor. However, the vendor declined to take them, and the damaged product was under the possession and liability of our client.

Solution

Our drawback team looked over our client’s situation and informed them that they would qualify for refunds from duty drawback through destruction provisions and would need to create a Notice of Intent to Destroy (NOI). The notice certifies that the merchandise had not been used in the United States before exportation and affirms specifics about the products.

After we filed the NOI, within two days Customs notified J.M. Rodgers of their decision to allow our client the option of destroying the damaged products under surveillance from a U.S. Customs agent. Customs then contacted J.M. Rodgers with a destruction date and location. J.M. Rodgers completed the destruction of the goods in front of a Customs agent and was provided the export date allowing J.M. Rodgers to file a Duty Drawback claim for the destroyed materials.

Results

Through this process, our client avoided unwanted duties and fees associated with damaged materials. We also assured our client we would be able to handle any further destruction processes they might have, which allowed them to continue importing worry-free knowing they had processes in place to counter unwanted liabilities.

Photo by Alexandre Debiève on Unsplash