Two words put together in a seemingly inharmonious way. A duty-drawback is a refund that companies and individuals can claim on paid duties, taxes and other fees on imported goods which are then exported.
A manufacturing duty drawback scenario is simple enough! If you import one item that is then exported as a different item, like part of a car imported that is then exported as a whole car, you could be eligible to drawback duties you’ve already paid. When the loop is closed from importing a piece of something that is exported as an aggregate, finished good, you are eligible for the duties you paid on the individual, raw product when you export the completed, different product.
Am I eligible?
Establishing if and when you’re eligible for this “free money” can be time-consuming, and more than ever, your time is money. With a BorderBuddy partner working on your importing and exporting, you know that your products are going where, to whom and how you want them to, without friction at the border. Duty drawbacks are an added perk that you’re wholly entitled to, that many are unaware of, or just don’t feel competent trying to request and manage.
We’ve returned some customers duty-drawbacks in the 6 figures, which as you can bet, was a nice, unexpected windfall. For smaller importers, that figure may not be as high, but money paid out and money back in is always a good thing, no matter the scale of your operations. Whether a hobbyist importer/exporter or a budding entrepreneur, BorderBuddy is on your side.
Let’s connect and see if duty-drawbacks are in your future, and any other questions you have about how to breezily import and export products. At BorderBuddy, we’ve got the border in order.