Duty drawback allows companies to recover up to 99% of paid customs duties, taxes and/or fees on qualifying imported products. While duty drawback rules are quite complex, it can create tremendous savings opportunities for claimants. Our team has compiled the most critical information regarding duty drawback recordkeeping rules to help claimants successfully manage the process.
Good duty drawback recordkeeping is crucial, but what exactly does that mean for claimants? It means that there are certain duty drawback rules mandating claimants to keep specific documentation on file as U.S Customs and Border Protection (CBP) can request access to the documentation for an allotted amount of time after the claim is filed.
Regardless of the type of drawback, record retention requirements apply. Strict recordkeeping requirements have been in place since the beginning of the federal government. Dating back to July 4, 1789, recordkeeping rules have forced claimants to retain cargo manifests, entry documentation, invoices and bills of lading.
Duty drawback claimants are required by law to keep certain records related to the import, export, manufacturing or warehousing of a product. Some of the specific documents include:
In addition to the above documents that must be retained, there are additional items that will help prove the product was exported. While these data elements are typically included in the commercial documentation of the export shipment, claimants should double-check that these records are kept in order to qualify for duty drawback, as you must be able to fully establish the date and fact of exportation for drawback purposes.
As a general rule, import or export records should be kept for five years from the date of entry or departure. However, official duty drawback rules specify that documents must be kept for three years from the date of liquidation or longer if required by law.
In addition to the duty savings, there are risks related to the duty drawback process that importers and claimants should be aware of.
Who says duty drawback rules have to be complicated? We certainly didn’t. Contact our team to learn more about our duty drawback solutions.