Duty drawback is a refund of customs duties, taxes, and fees paid on imported goods that are subsequently exported or destroyed. Under U.S. law (19 U.S.C. 1313), importers can recover up to 99% of duties paid. For companies with significant import and export volumes, duty drawback can represent millions of dollars in recoverable costs that many businesses leave on the table.
According to CBP data, fewer than 10% of eligible companies actually file duty drawback claims. The primary reasons are the complexity of tracking and the difficulty of matching imports to exports.
Before configuring TIM for drawback tracking, determine which type of drawback applies to your operations. The three main types are: manufacturing drawback (imported materials used to produce exported goods), unused merchandise drawback (imported goods exported in the same condition), and substitution drawback (domestically sourced goods substituted for imported goods).
In TIM, navigate to Settings and select Duty Drawback. Create a new drawback profile by specifying the type of drawback, the HTS codes of your imported materials, and the Schedule B codes of your exported products. TIM will use this profile to automatically identify potential drawback opportunities.
TIM can automatically match import entries to export entries based on your drawback profile. For manufacturing drawback, the system tracks the materials from import through production to export. For unused merchandise, it matches the same product imported and exported. Review the automatic matches and confirm or adjust them.
Once import and export entries are linked, TIM calculates the potential duty recovery for each matched set. The calculation considers the duties paid on the import entry, the applicable drawback rate (typically 99%), and any exclusions or limitations. The dashboard shows both individual and aggregate recovery amounts.
When you are ready to file, TIM generates the drawback claim documentation in the format required by CBP. This includes the drawback entry (CBP Form 7551), the certificate of manufacturing or certificate of delivery, and all supporting import and export documentation.
After filing, track the status of your drawback claims in TIM's drawback dashboard. CBP typically processes claims within 3 to 6 months. TIM will notify you when a claim is approved, when additional documentation is requested, or when a claim is denied so you can take corrective action.
Camtom Team
Editorial Team
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