1. What Is The Duty Drawback Opportunity
2. What Is A Drawback Evaluation
3. Customs Requirements
4. Claims Processing
5. Compliance Approval
6. Information Resource
   
7. What Is A Duty Drawback Program
8. General Information
9. Exportation
10. Unused Merchandise
11. Manufacturing
12. What Monies Are Eligible For Drawback Recovery
13. When Is Drawback Not Allowed
14. Who Is The Exporter
15. What Is The Timeframe To File A Drawback Claim

Drawback Evaluation
Does a firm have a drawback opportunity? if so, what is the extend of the dollars that can be recovered. What steps will be necessary to implement a drawback program at this firm. How much time and effort are required by the firm to recover these dollars.

Customs Requirements
Preparing and securing the requests to the Customs Service, Which allows the claimant to submit claims. These might include writing of the contract where a manufacturing drawback approval is sought or a Request for Waiver of Prior Inspection in the case of Unused Merchandise drawback. The placement of bonds and others requests.

Claims Processing
The collecting of the proper documents from the claimant and others involves in the process (brokers, forwarders and vendors) is and initial step. Verification of the documents trail as reflected in the claimants internal records follows. Final claims are prepared, submitted to customs and payment secured.

Compliance Approval
A new facet of the drawback process, this submission lists of Customs the records and the personnel each company has to support its claims. Past approvals were based on generalized information. The compliance format will allow each company tailor the report to its circumstances and record processes. NF Stroth will take the client through this exercise.

Information Resource
The dramatic changes with the importing process are matched by those in drawback. It is our role to know What is going on, How and When to do What is necessary as regards duty drawback. We are your information central providing written updates. Training sessions on drawback and other forms of duty avoidance are also available.

What Is A Duty Drawback Program
A Duty Drawback Program seeks to reduce the exporter's cost by recovering duty paid when the item was imported. By its nature, it is a governmental program. N.F. Stroth is committed to making your program cost effective not a cost center.

General Information
Duty drawback is defined as the recovery of Custom Duty on merchandise that is imported and is:
a) Re-exported in an Unused Condition or,
b) Manufactured into a new articles which is then exported or,
c) Rejected as not meeting specifications and re-exported or,
d) Destroyed under Customs supervision rather than exported if the other conditions of a), b), or c) are met.
The object of duty drawback is to follow the US exporter to better compete in the world market. It lowers the exporters material cost by removing the Customs duty from the transaction. Duty drawback is a privilege INSTITUTED BY CONGRESS and administer by US CUSTOMS SERVICE. It is a specialized process administered in only seven Customhouse's in the Country.

Exportation
Defined by the Supreme Court as "a severance of the good from the mass of things belonging to this Country with an intention of uniting them to the mass of things belonging to some foreign Country".

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Unused
The imported item is said to be "Unused" if it is not employed for the purpose for which it was intended while part of the commerce of the United States.

Manufacturing
The change or advancement in condition from what it was before the imported article:
a) Has attained a distinctive name, character or use different from that originally possessed, or
b) Has under gone a process which made the article fit for a new and different purpose, or
c) Has under gone a purpose which made it better fit for the same purpose.

Monies Eligible For Drawback Recovery
All regular Customs duties and Internal Revenue Taxes as well as marking duties are eligible for recovery under drawback. Note: Fines, Penalties, the merchandise processing fee and harbor maintenance fees are not eligible for drawback. Countervailing and anti-dumping duties are also prohibited from drawback recovery.

When Is Drawback Not Allowed
Drawback is not allowed on shipments to Puerto Rico, The US Virgin Is, American Samoa, Wake Is, Midway Reef, Guam, Canto Is, Enderbury Is, Johnson Is and Palmayra Is. All other shipments out of the US can be considered "exportations for the purposes of drawback".

Who Is The Exporter
The exporter is that person name on the Bill of Lading, freight bill, Canadian Customs manifest, etc. as shipper. The exporter is the party entitled to receive the drawback.

What Is The Timeframe To File A Drawback Claim
There are series of time frames to keep in mind about drawback. They are generous and that sometimes is the catch. They seem to make drawback a job that can be done" later". A complete drawback claim may be filed up to three years after the date of exportation. An import used within a drawback claim may have been entered into U.S.:
A) for Unused Merchandise up to three years prior to export;
B) For Manufacturing up to five years to export and;
C) For Rejected Merchandise up to three years prior to export.

On the other hand, a drawback claimant must maintain all records concerning a drawback for the three years after payment.