The first step N.F. Stroth and Associates takes to establish a drawback program for our clients is to apply to U.S. Customs and Border Protection for Drawback Privileges. By applying for drawback privileges this allows the clients more flexibility when exporting and accelerates the duty refund process.
The application process consists of the following elements:
Accelerated Payment Privilege allows a claimant to request payment at the time a
drawback claim is filed. In the absence of this privilege, a claimant must wait until a
drawback specialist liquidates the claim.
This process can take from several months to several years. Under accelerated payment, claims are normally paid within 30 to 45 days of filling. Customs does not pay interest on pending drawback claims making accelerated payment a valuable privilege in terms of the time value of the refunds.
Waiver of Prior Notice (WPN) serves to expedite the claims process with this privilege the client will not have to notify Customs and Border Protection when exporting.
One Time Waiver will allow the client to go back three years and claim all eligible past exportations.
If applicable to the clients drawback program, we would also prepare a Commercial Interchangeability application which states that any part with a specific part number is interchangeable with any other part with that same part number.
We will also provide Customs with an operational narrative that shows the applicant’s document flow which would start with the import entry, then showing a sample product going into inventory then being withdrawn from inventory and then the export paperwork which would include the bill of lading and in the case of exportation to Canada the Canadian Customs B3 form and Mexico the Mexican Pedimento.
It usually takes between 90 and 120 days, once drawback applications are submitted to Customs, to recieve approval. While the applications are being processed by Customs, our firm uses this time to work with your company to establish procedures and start the actual claim process.
As your Drawback Broker N.F. Stroth & Associates responsibilities are:
Review documents and electronic data
Prepare and file drawback entries
Establish and monitor documentation flow with third parties
Track recoveries and liquidations
Work with the claimant to identify new opportunities
As the Drawback Claimant your responsibilities are:
Assign an employee that N.F. Stroth & Associates could train and contact for required information needed for the application and drawback claim process.
Management oversight and Internal Controls
Provide documentation and electronic data of
- Imports - CF7501 and respective commercial invoices
- Exports - bill of ladings and respective commercial invoices or the electronic equivalent.
- Product Information - conversion and or bill of material
- Confirmation - basic understanding of Customs regulations
Document samples are available by clicking here.
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