International
Drawback Services is a customhouse brokerage firm specializing in import tariff
recovery. Over the years, we have established a solid reputation for our
enterprising approach to drawback services. We are also distinguished by our
successes in creating, deploying and expanding drawback programs into unchartered industries with commingled duty-rated materials
and complex, multiparty product flows.
The
founders of IDS have over thirty years of cumulative experience in drawback and
international trade. This specialization in Customs regulations, import/export
compliance and drawback procedure has quickly enabled IDS to establish its
position as a leading drawback service provider, effectively managing drawback
programs in a variety of markets and commodities, including many for Fortune
500 companies.
“Drawback”
is the refund of Customs duties paid on materials imported to the U.S., which are
subsequently
1.
used to manufacture a finished product that is then
exported,
2.
exported unchanged, or
3.
destroyed.
The
Drawback regulation was established in 1789 for the purpose of encouraging
domestic manufacturing and the export of manufactured goods, and is available
across a broad array of industries and articles. Any duty-rated material is
eligible for Drawback recovery.
EXAMPLE
In
this simplified example, a domestic mill imports 1,000 pounds of
titanium sponge and pays $ 1,000
in tariff fees. The mill then turns the ti-sponge into 1,000 pounds of titanium ingots and sells the
ingots to a domestic forger. The forger presses the ingots into aircraft engine
components, which are then sold to an aircraft manufacturing facility located
in the U.S.
When the aircraft manufacturer sells one aircraft abroad (export), its engine,
containing 1,000 pounds
of titanium-derived components, triggers the Drawback recovery opportunity for
the 1,000 pounds
of imported titanium sponge.
For
this example, the Drawback recovery would total $1,000. This duty Drawback
would typically be split equally among the domestic parties in exchange for
providing the independent customhouse broker the necessary sales, purchasing
and bill of material data for the initial duty to be recoverable through U.S.
Customs. So, while the forger in the middle of the manufacturing process had no
direct import or export activity, the company was still able to participate in
Drawback recovery.
ADVANTAGES OF DUTY
DRAWBACKS AND IDS
Any
duty-rated material is eligible for Drawback recovery.
IDS
can recover refunds on duties you paid up to five years ago.
Even
companies with no direct import or export activity can benefit from Drawback
recovery.
As
a neutral third party, IDS is bound by strict confidentiality agreements.
We
don’t get paid until you do. IDS is compensated by
commissions based solely on the recovery of duties.
THE DRAWBACK TO DUTY DRAWBACKS
The
only drawback to duty Drawback is chasing the refunds yourself. The U.S.
Customs Service estimates that of the $3.5 billion in duties eligible for
Drawback refunds annually, only $0.5 billion is actually claimed every year.
Drawback
is often underutilized due to lack of awareness that the program exists, the complexity of related regulations and a
reticence of partners in a supply chain to share confidential purchasing and
sales information.
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Our
daily contact with U.S. Customs enables IDS to swiftly and efficiently expedite
the processing of your Drawback claims and documentary requirements. You’ll
never miss a potential refund, including those eligible imports and exports
that expire daily. We start by preparing the paperwork necessary to obtain your
eligibility for the U.S. Customs provision of Accelerated Payment. Once
approved, you’ll receive your Drawback refunds within 45 days from the date
your claim is filed.
Our
clients include: Goodrich, RMI Titanium Company, ALCOA, Carpenter, PCC, General Electric.
22214
Highland Knolls, Suite A
Katy,
Texas 77450
Telephone:
281-395-6633
Toll
Free: 1-800-898-DUTY
Fax:
281-395-6319
.www.idrawback.com
