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One Time Drawback Transactions
N.F. Stroth offers specialized services in the field of Duty Drawback recovery. One of these unique services relates to ‘onetime’ drawback filings. Clients often have shipments of goods (urgent and non-urgent) that are ready for exportation for which they want the duty that was paid upon import.
However, these clients have not previously submitted any formal applications into Customs and therefore do not have a program approved by Customs in effect. We are still able to file a claim and recover the duty in these instances but there are certain stipulations and procedures involved.
What Documentation do you have to provide
If the shipment has not yet been exported out of the USA, the client needs to provide the following import and export documentation and information pertaining to the pending shipment:
IMPORT entry summaries (form 7501), import invoice(s), packing list(s) and Bill(s) of Lading
EXPORT commercial invoice detailing the shipment and packing list that can be cross-referenced to the Import(s)
Address where merchandise is located at present and contact person’s name, title, address, fax, phone and email
Shipping arrangement details: intended date of export (approx.), Port of export (where the shipment will go out from) and all contact information
vessel/carrier information (if known)
description of merchandise and reason for export
Stroth’s next steps as your drawback broker
We will submit the form 7553 to the Customs office closest to where the merchandise is or the Customs office closest to the port of export. The time frame between sending the NOI form and actually exporting the shipment varies but generally falls between 7-10 business days.
We will notify the client as soon as we hear from Customs that the shipment is cleared for export. Customs will notify us if there is an exam required in which case the goods may have to be moved to the port of export or Customs will go to where the goods are being held. If no exam is required, we will receive the signed NOI form 7553 in the mail.
After the export has taken place, we will require an ink signed copy of the export Bill of Lading. This can be a certified copy of the original as long as it has an ink signature on the document (not a scan or fax).
In order to process the claim, we also require an ink signed copy of a Power of Attorney from the client to N.F. Stroth granting us the legal right to act on their behalf in filing the drawback. We draft up this document and send it to the client who then, after signing, must mail 2 ink copies back to our office. This can be done after before or after the export has taken place.
Other circumstances and stipulations
If the export has already taken place, we require the ink signed copy of the Notice of Intent to Export (form 7553). If this form was never submitted to Customs and signed off before the export took place, then N.F. Stroth will have to file a Waiver of Prior Notice (CBP 190.91) form. This essentially asks Customs for the drawback return in the absence of the NOI being filed prior to exportation.
There are stipulations to filing the Waiver of Prior Notice (CBP 190.91) document in that future shipments will always need a NOI form 7553 filed before being exported out of the USA. This is also a onetime occurrence in that the client can’t go back and try to claim duty on any other past shipments that were exported without the NOI form filed except for the shipment that the Waiver application covers. The Waiver application can only be used once.
What are the costs involved
The charge for filing a “One Time” Drawback return varies from case to case and is based on the amount paperwork involved, the processing time and labor involved, and the overall degree of difficulty. The fee covers reviewing and processing of all documentation and drafting up the Customs form 7553 Notice of Intent to Export. The fee will also cover any audits or desk reviews requested by Customs after the claim is submitted.
The fee is payable with 30 days of filing the form 7553 and an additional percentage (agreed upon at time of fee quote) of the total recovery is also due once the claim is paid. This can take up to a year or more due to these types of filings not having accelerated payment set up with Customs.
