Discussion Topic #24: Drawback

To facilitate discussion in r/CustomsBroker we have restarted our weekly topic threads. This week’s topic is a specialty – drawback. Drawback is the process of asking Customs for a refund of the duties/taxes/fees paid on merchandise because it qualifies for a special provision within the drawback regulations. Some discussion points to consider:

• Do you know anything about drawback? What and why/why not?
• How do you handle drawback claims? Do you refer the business out? Handle in house? Tell the client they are on their own?
• For importers: have you looked into drawback programs? If yes, why did you or did you not decide to do them? How did you find a drawback provider to work with?
• For importers: if you have a drawback program, how do you handle the record keeping requirements? Do you keep the drawback files separate from your regular entries?
• For brokers: if your clients do drawback but you don’t handle the drawback filing, do you keep the entry files for a longer period as a courtesy? Or do you shred them at the 5 year mark and leave it at that?
• For someone wanting to know more about drawback, do you have any recommendations for someone to get further education or learn how to do it?

Please leave your thoughts on drawback in the comments.