Duty Drawback
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If you’ve paid duties on goods imported into the United States that were later exported, you’ll want to get as much of that money back as possible. However, filing a claim for duty drawback from U.S. Customs and Border Protection (CBP) can be difficult because the rules and timeframes change all the time. A duty drawback broker knows how much money you are entitled to, what type of drawback to apply for, and how to prove your claim. That means you won’t leave any cash on the table.
The drawback and brokerage plan below will help you find the right broker and maximize the funds you can receive from the government.
1. Find a Broker With Experience in Your Industry
The first step in this drawback plan is understanding that duty drawback claims are much less stressful when you use an experienced specialist. Look at the CBP website, and you’ll notice multiple policies for applying for refunds for different industries, such as chemicals, agriculture, machinery, and spirits, wine, and beer. Making sense of all these regulations can give you a headache, and the government might delay or reject your claim if you fill in the wrong form.
A broker comes in handy here. Choose one with experience in your sector who has worked with similar companies to yours. The industries a broker specializes in should appear on their website.
2. Work With a Broker With a Successful Track Record
Not all duty drawback brokers are equal. Find one with a recovery success rate of at least 90% that can support you in a speedy timeframe. The most successful brokers have experienced drawback account specialists and support staff who help you find the correct documentation to support your claim, such as customs declarations, and ensure you are eligible for funds before applying for drawback, which saves time.
You can also check if is company is associated with organizations such as The American Association of Exporters and Importers (AAEI) and the National Customs Brokers Association (NCBAFF), which proves it has the experience and expertise you need. Brokers should list this information on their websites. Finally, read feedback from previous customers on review websites to see if a broker provides exceptional service.
3. Schedule a Consultation
Before working with any broker, you should talk to them directly via phone or video call. Ask about their service offerings and how they will maximize fund recovery.
Pay attention to what a broker says — or doesn’t say — during your consultation. Vague information about pricing, audit processes, and technologies used to support the claim process can be a red flag and mean the company doesn’t have the experience or skills you need for successful recovery.
4. Get a Quote for a Broker’s Services
Different duty drawback brokers charge different amounts for their services. Some companies might ask for a flat fee for their offerings, while others only charge a commission if your claim is a success and you receive funds from the government.
Finding out how much it costs to work with a broker is important before you sign a contract with them. The best companies are transparent about their pricing and should give you an estimated quote based on a quick drawback assessment of your business. That way, you have a good idea of the total amount of money you can make.
5. Review Your Contract Before Signing It
The final step of this drawback and brokerage plan might be a simple one. However, you’ll be surprised at the number of businesses that don’t check their contracts with brokers before signing them.
A contract with your broker stipulates the terms and conditions of your business arrangement, including the services you will receive, how the company will handle your data, and any hidden fees you might need to pay. Read each clause in your contract and ask a broker to clarify any confusing information. Alternatively, work with an attorney specializing in commercial contracts to ensure you understand what you’re signing.
How J.M. Rodgers Helps You Optimize Drawback Recovery
Comprehending the complexities of duty drawback can be exhausting, especially when rules and regulations for recovering duties from imports into the USA change frequently. Working with a broker can clear up the confusion associated with drawback and maximize recovery potential. However, you should follow the drawback and brokerage plan above for the most successful results.
J.M. Rodgers are duty drawback experts with hundreds of years of combined experience. We can help you manage any drawback type with CBP in your sector, increasing your chances of a payout. Our results speak for themselves. For example, we help a large manufacturer of security cameras recover more than half a million dollars in drawback funds every year.
Speak With Our Experts
Curious to learn more about our duty drawback, customs brokerage, freight tracking, and freight forwarding services? Send us a message and our expert team will get back to shortly.