“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.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.