Each year approximately $20 billion in duty is collected by the U.S. Government through the Bureau of Customs & Border Protection. According to Customs estimates, roughly 10% or $2 billion of this total is available for refund through duty drawback. Duty Drawback is the refund of Customs duties, certain Internal Revenue taxes, and certain fees that have been lawfully collected at importation. The refund is administered after the exportation or destruction of either the imported/substituted product or article that has been manufactured from the imported/substituted product.
Surprisingly, only about $750 million of the approximate $2 billion available for refund is actually recovered. Consequently, over a billion dollars is going unclaimed year after year. This is mainly attributable to a lack of awareness of the program or a company’s inability to understand its complexities. Our drawback specialists will help demystify the program and assist in determining whether or not you qualify for a refund.
• Eligibility Analysis
Hankyu Hanshin will provide (free of charge) an in-depth analysis of your product line and trading patterns to determine your eligibility to participate in Duty Drawback.
• Drawback Ruling Applications
Formerly referred to as "proposals" and "contacts", drawback ruling applications are the first step in establishing your drawback program. Hankyu Hanshin will assist you in preparing the necessary documentation to successfully accomplish the first step in the drawback process.
• Drawback Compliance Program
Customs created the Drawback Compliance Program to help encourage and improve compliance among drawback claimants. For fraud or repeat violations, customs states they will, issue a warning letter of monetary penalties to the party that violated the program.
Participation in the program depends, in part, on the drawback claimant's ability to meet strict eligibility requirements. If you decide that you would like to participate in the program, Hankyu Hanshin will assist you in filing the proper documentation and meeting the eligibility requirements necessary to become certified.
• Accelerated Payment Program
The Accelerated Payment Program is a special program offered by Customs that allows you to receive your refund up front (in approximately 1 month) rather than waiting for the claim to liquidate (which can take a year or more).
There are many advantages to this program; however, there are filing and eligibility requirements, and some minor costs associated with the program.
Hankyu Hanshin can help you to meet all the filing and bonding requirements necessary to qualify for the program.
• Claim Preparation
Improper claim preparation can result in lower refunds, rejected claims, and even the assessment of administrative penalties against the claimant. Hankyu Hanshin prepares all claims with the goal of maximizing drawback recovery and ensuring the correctness of the claim. After submission, all claims undergo a series of error checking functions to see if the two objectives are met.
We will ensure that you will receive the allowed maximum drawback for your claim with limited penalties.
• Fully Automated Systems
Hankyu Hanshin utilizes the Dutycalc Data Systems(tm) drawback program as our primary drawback tool. Designed with accuracy and flexibility in mind, the program allows the user to fully automate the drawback process and provides for a broad range of user defined features as well as the ability to accept downloaded data from a mainframe.
Numerous layers of verification and validation checks allow the system to detect duplication and over claiming errors before the claim ever makes it to Customs.
• Claim Control, Tracking and Reporting
Hankyu Hanshin tracks all claims in every step of the way. Tracking can be based on multiple selection criteria. Our system also allows us to generate management and analysis reports. This helps our customers to better control and manage their drawback program as well as detecting errors. Many of the reports are user-defined and can be constructed in any data field in the system.
• Training & Education
Our staff members will provide various legal, administrative, and record keeping procedures associated with Drawback. Hankyu Hanshin is always available to assist you during this phase-in period.
• Customs Liaison
Hankyu Hanshin understands the importance of being a Customs liason. We regularly consult with customs on issues involving the facilitation of a claim, the interpretation of a particular law, or to resolve a dispute or conflict that may arise.
Our industry is a dynamic and highly regulated industry. The laws and procedures that govern the industry are complex and changes quickly.
We provide free of charge consultations for existing and new laws and procedures in our industry.
• Audit Preparation
If and when the U.S. Customs Servece contacts you, Hankyu Hanshin will provide audit assistance and help ensure your audit readiness.