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February 20, 2009
Bob Cowie, Vice President Consulting, GHY International
Do you use imported merchandise to produce or manufacture products for export? Are you paying import duties on finished goods which are eventually exported?
If the answer is "yes", Duty Drawback is an opportunity to increase profitability and reduce costs. You may be entitled to duty recoveries and not even know it!
United States Customs and Border Protection estimates that 3 billion dollars per year of US import duties are eligible for drawback, of which 80% are not recovered.
Although there are no published statistics available from Canada Border Services Agency, it is our belief that the unrecovered amounts are also significant.
Up to 99% of all US Customs duties can be refunded on imported merchandise subsequently exported, or in some cases used to manufacture a new article for export. Duties paid up to 6 years ago may be refunded against exports over the past 3 years. Up to 100% of all Canadian Customs duties can be refunded on imported merchandise subsequently exported, or in some cases used to manufacture a new article for export. A claim for drawback must be filed within 4 years of the date the goods were released from Customs.
The growth of off-shore and near-shore sourcing has made it increasingly important for Canadian and United States firms to adopt strategies that factor into account opportunities to reduce or eliminate cost inputs through programs like Duty Drawback.
Since GHY International is both a Canadian and United States Customs Broker, we are in a unique position to offer the expertise and experience you need to file retroactive duty drawback claims in both countries, or to establish a new drawback program, so you can take advantage of costs savings on a regular basis.
For more information on the Duty Drawback program, please contact Bob Cowie at 204-947-6700 Extension 237 bob@ghy.com.
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