Duty Drawback is a money-saving program in international trade where companies can get back customs duties they paid on imported materials if those materials were later used in products that were exported. Think of it like getting a refund on taxes. For example, if a company imports steel, makes it into car parts, and exports those parts, they might be eligible to get back the duties they paid on the steel. Many freight forwarders and customs brokers help companies manage this process since it can lead to significant cost savings but involves complex paperwork and regulations.
Managed Duty Drawback claims resulting in $500,000 annual recovery for clients
Implemented Duty Drawback program tracking system for 15 major importers
Successfully processed Drawback claims with 98% approval rate
Led team handling Customs Drawback documentation and submissions
Typical job title: "Drawback Specialists"
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Q: How would you implement a duty drawback program for a company that's never had one before?
Expected Answer: A strong answer should cover assessing the company's import/export patterns, setting up tracking systems, training staff, creating documentation procedures, and estimating potential savings versus program costs.
Q: What strategies would you use to maximize drawback recovery while ensuring compliance?
Expected Answer: The candidate should discuss methods for identifying eligible transactions, implementing proper record-keeping systems, and maintaining documentation while balancing aggressive recovery with regulatory compliance.
Q: What are the main types of drawback claims and when would you use each?
Expected Answer: Should be able to explain manufacturing drawback (for imported materials used in exported products) and unused merchandise drawback (for imported items exported in unchanged condition) in simple terms.
Q: How do you ensure accuracy in drawback calculations?
Expected Answer: Should describe verification processes, documentation requirements, and methods for tracking import duties paid versus claimed amounts.
Q: What basic documentation is needed for a drawback claim?
Expected Answer: Should mention import documentation, export proof, manufacturing records (if applicable), and proof of duty payment as basic requirements.
Q: What is the general timeline for filing a drawback claim?
Expected Answer: Should know basic filing deadlines and time limits for claiming drawback on imported merchandise.