Issue 27, May 29, 2012
WHAT IS DRAWBACK?
Drawback refers to the refund of duties paid on imported merchandise when the merchandise is subsequently exported, either in an “Unused” state or after undergoing a manufacturing process.
Up to 99% of duties paid can be recovered. In certain instances, Harbor Maintenance Fees and Merchandise Processing Fee can also be recovered up to 99%
Many DHL Drawback customers recover hundreds of thousands of dollars annually, with some of our customers receiving well over a million dollars annually of refunds.
Drawback is very under utilized in the United States. Over $25 billion is paid annually in duties with only $750 million annually recovered. There is a vast potential for additional drawback refunds if the opportunities are properly evaluated and pursued.
BENEFITS OF DRAWBACK
By taking into account the potential for the added income recovery, drawback can assist the evaluation process of purchasing and selling globally in several ways:
- Export pricing can be more profitable and competitive
- Logistics considerations for moving merchandise into and out of the country can be affected in a positive way
- Value-added effects to customer end-users can be passed along. Drawback law allows for benefits to be accrued in the supply chain, so a single company does not have to be the importer and exporter of record. These benefits can be shared.
DHL SERVICES and BACKGROUND
DHL Drawback Services has been a consistent leader over the past 25 years in compliance; amount of refunds obtained (over $4 Billion for our customers in that time period); and legislative and trade initiatives.
DHL has a “turn-key” approach to evaluating and obtaining drawback recoveries for our customers. Our experience allows us to quickly determine the potential for a drawback customer with a minimum of time and effort on the customer’s part. If drawback potential is confirmed, DHL Drawback has the knowledge and expertise to quickly turn that opportunity into cash for the customer without disruption to the customer’s daily efforts and operations.
Our services are offered on a commission basis, with no up-front costs or obligations. We are only paid when and if the customer receives refunds. DHL Drawback has experience in all areas of business enterprises, including aerospace; chemicals; metals; pharmaceutical; heavy machinery; systems and computer hardware; and various consumer products.
DHL Drawback can be contacted through our website at www.dhldrawback.com or contact Micah McDonald directly at mmcdonald@dhldrawback.com.
