open/close

Rejected Merchandise Drawback Methods

Rejected Merchandise

A claimant may file a claim for drawback on imported material that is subsequently exported and which does not conform to sample or specifications, has been shipped without the consent of the consignee, or has been determined to be defective as of the time of importation.

Unused Merchandise 

A claimant may file a claim for drawback on imported material that is subsequently exported in an unused condition. Prior to exportation, Customs must be advised of an export shipment to afford them the opportunity to examine the export shipment. The claimant’s records must clearly establish the fact that the exported merchandise was the imported merchandise.

Returned Retail Merchandise 

This is a special rule for substitution. A claimant may file for drawback upon the exportation or destruction under CBP supervision of imported merchandise ultimately sold as retail by the importer or by the person who received the merchandise from the importer, and for any reason returned to and accepted by the importer or the person who received the merchandise from the importer. Prior to exportation, Customs must be advised of an export to afford them the opportunity to examine the export shipment.

Please inquire with us for eligibility requirements.

Applications:

In addition to the application, certain privileges can be filed with the application:

1. Waiver of Prior Notice:

  • Allows the filing of drawback claims on future exports without U.S. Customs having to supervise the exportation
  • One to three months for approval from U.S. Customs.
  • Claims may be filed pending approval, no payment until approved

2. One Time Waiver of Prior Notice:

  • Allows the retroactive filing of drawback claims for the last five years notwithstanding the fact that prior notice was not given to U.S. Customs
  • One to three months for approval from U.S. Customs
  • Claims may be filed pending approval, no payment until approved

3. Accelerated Payment Privilege:

  • Allows for payment of drawback claim within three to four weeks of filing
  • Claims may be filed pending approval, no payment until approved
  • Drawback bond must be posted

Documentation:

The documents needed to prepare the applications and the actual claims include but are not limited to: 

  • Import purchase order
  • Import purchase invoice
  • Receiving record
  • Entry summary*
  • Export sales invoice
  • Export bill of lading**

* The drawback claimant need not have paid the import duties directly to U.S. Customs. Import duties are often buried in the purchase price on imported merchandise obtained from an American distributor. U.S. Customs assumes that the drawback value of the merchandise passes on with the sale of the imported merchandise.

** The Customs Regulations state that the exporter is entitled to the drawback refund unless he waives that right. Many companies sell drawback eligible merchandise to domestic companies who subsequently export the merchandise. If the proper waiver is obtained from the exporter claims may also be filed against those exports.

Time Frames:

  • A claim for drawback must be filed within five years from the date of importation (except retail)
  • The subject merchandise must be exported within five years from the date of importation (except retail)

For a free, no obligation assessment of your company's Duty Drawback potential, complete the Duty Drawback Questionnaire.  Contact your local representativeor email us today to get started!

Download our Duty Drawback Program 
Download our Duty Drawback Questionnaire