Importers typically have questions concerning the potential for customs duty drawback refunds.
“Substitution drawback” is a type of drawback that allows importers to obtain drawback without the cost of maintaining separate inventories for dutiable and non-dutiable merchandise or domestic and foreign merchandise. By claiming substitution drawback, importers may potentially reduce current drawback costs, and obtain refunds for a broader scope of merchandise.
There are two main types of substitution drawback:
Prudent importers will consider taking a closer look at the type of drawback they are claiming—as well as whether or not they are claiming drawback at all—so as to identify possible or enhanced refund opportunities.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Or your local KPMG Trade & Customs professional.
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