Potential Refunds on Customs Duties Available to U.S. Manufacturers

Do your products contain imported sugar, raw sugar or flax seeds? Do you currently export finished or manufactured products containing these ingredients?
If you answered “yes” to both of these questions, you may be eligible for Duty Drawback. The Duty Drawback program was initially established in 1979 by the first tariff act of the United States. The program gives US manufacturers the opportunity to receive up to 99% of the customs duty paid to U.S. Customs. Duty Drawback is available in any instance in which an import duty has been paid on an imported ingredient and finished goods are subsequently exported.
Depending on the usage and volume of these ingredients purchased, this could lead to a substantial savings and thus lower prices for your international customers.
Why Apply for Duty Drawback?

• Drawback programs could help you obtain a significant refund on duties paid on imported sugar products, flax seeds, etc.
• Removes the handicap of including the duty paid on imported ingredients in your costs and, consequently, your export price.
• Allows you to offer a lower export price to international buyers and increases international sales by making your products more price-competitive and more accessible to foreign buyers.

Who Should Apply for Duty Drawback

• Confectionery manufacturers
• Baking products suppliers
• Processed food producers

How to Apply for Duty Drawback

• Visit the U.S. Customs website for the full brochure and list of necessary paperwork.
• Gather all supplementary supporting documents
• Contact your freight forwarder or nearest Port for assistance.

For more information on Duty Drawback and how to apply, please contact AMI.