This week Customs put out a message through their Cargo Systems Messaging Service that caused a few of our clients to contact us with some alarm, as the message states that claimants with Accelerated Payment (AP) privileges would not receive their payments via the accelerated option, but would have to wait until Customs issued new regulations.
However, the vast majority of claimants need not worry about this. For all claimants who are claiming typical direct-identification same-condition drawback on their exports to Canada and Mexico, their programs will continue uninterrupted, and they will still be able to take advantage of accelerated payment.
What Customs’ messaging referred to was specifically drawback on products that were manufactured in the United States that would qualify for specifically “USMCA drawback.” If products are unused in the USA, it’s simply considered regular same-condition drawback, and is not affected.
Unfortunately, for any claimants whose manufactured products go to Canada or Mexico and still qualify for refunds, they will need to wait on their payment until new regulations governing these claims are fully implemented by Customs for those to be paid. At this time, Customs hasn’t given any timeline as to when these would be finalized. Earlier communications pointed to the expectation that this would be resolved in March, but there is no final notice yet.
The last few years have seen tremendous changes in duty drawback which continue to this day. If you’d like to discuss how JM Rodgers can help you seek refunds via drawback, please Contact Us.