In the competitive and complex world of international trade, every dollar counts. Companies engaged in importing and exporting goods often pay substantial amounts in customs duties and taxes, which can significantly impact their profitability. However, many businesses are unaware that they may be eligible to recover up to 99% of these duties and taxes through a process called duty drawback. At Omni Logistics, our Omni Trade Services (OTS) division is dedicated to helping companies navigate the complex landscape of duty drawback and maximize their potential refunds.
Understanding Duty Drawback
Duty drawback is a refund of customs duties paid on imported materials that are subsequently exported or used in the manufacture of exported goods. U.S. exporters can receive refunds from U.S. Customs and Border Protection (CBP) of up to 99% on duties and taxes paid, provided they have the necessary documentation. This presents a significant opportunity for importers and exporters to recover previously paid duties and taxes on imported merchandise that is later exported or destroyed.
Types of Duty Drawback and Their Benefits
There are five primary types of duty drawback, each with its own set of requirements and benefits:
Direct Identification Manufacturing Drawback: Allows recovery of duties when duty-paid imported material is used to manufacture a product that is later exported from the U.S.
Substitution Manufacturing Drawback: Permits recovery of duties when imported duty-paid, duty-free, or domestic material of the same kind and quality as the imported duty-paid designated material is used to produce the exported product.
Direct Identification Same Condition/Unused Merchandise Drawback: Enables recovery of duties when material is imported duty-paid and subsequently exported unused.
Substitution Same Condition/Unused Merchandise Drawback: Allows recovery of duties when unused material, which is commercially interchangeable with the imported duty-paid material, is exported.
Rejected Merchandise Drawback: Permits recovery of duties when rejected merchandise is exported or destroyed within five years of the date of import.
By taking advantage of these various types of duty drawback, companies can significantly reduce their import costs and increase their competitiveness in the global marketplace.
Omni Logistics: Your Trusted Partner in Duty Drawback
At Omni Logistics, our OTS division offers a comprehensive suite of duty drawback services designed to help companies maximize their refunds and streamline the process. Our expert team provides:
- Preparation and submission of Manufacturer’s Drawback Ruling
- Preparation and submission of all requests for Special Privileges (Accelerated Payment, Waiver of Prior Notice, One-Time Waiver of Prior Notice)
- Preparation and filing of all Duty Drawback Claims
- On-site follow-up with U.S. Customs and Border Protection to ensure timely payment of Duty Drawback Claims
- Duty Drawback Audit Services
- Record Retention Management
- Complete Management of the claimant’s Duty Drawback account
In addition to our core services, Omni Logistics offers audit services for past transactions. Our team successfully secured a $750,000 refund from customs for a customer, allowing them to avoid layoffs during the COVID-19 pandemic. This demonstrates our commitment to helping businesses not only maximize their refunds but also navigate challenging times.
With Omni Logistics as your partner, you can trust that our knowledgeable professionals will work tirelessly to ensure you receive the maximum eligible refunds while maintaining compliance with all relevant regulations.
Maximize Your Savings with Omni Logistics’ Duty Drawback Services
Don’t miss out on the opportunity to recover significant amounts in duties and taxes. By partnering with Omni Logistics’ OTS division, you can leverage our expertise and comprehensive services to streamline your duty drawback process and boost your bottom line.
Contact Omni Logistics today to discover how our duty drawback solutions can help your business thrive in the competitive world of international trade.
