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Q: "I want to file duty drawback, but I am not sure I have the necessary documents. What documents do I need to substantiate the exportation of my merchandise in order to file drawback correctly?"
A: First and foremost, before even thinking about which documents you need, you must take into consideration how you're going to handle them. You will need to use a lot of common sense and to have good record-keeping skills in order to organize and run a compliant duty drawback program.
In terms of documents, the original Bill of Lading is the best proof of exportation. Although the Bill of Lading or Air Waybill is the document Customs prefers for you to use, other documentation can be used if it contains all the necessary information.
So what is this necessary information? Well, your export documents must answer these four important questions:
- Who is the shipper?
- What is the destination of the merchandise?
- What was the date of exportation?
- What is the merchandise?
You can find the information in question on the original Bill of Lading, commercial invoice, and packing list. If an original Bill of Lading is not available, you can refer back to documents such as bank drafts (financial acknowledgment showing that funds were exchanged) and shipping logs and ledgers. What is important is that you show proof of payment and proof that the merchandise did actually leave the country.
And by the way, don’t toss those documents out too soon. Customs requires that you hold on to your drawback documents for three years following payment of your claim. This three-year recommendation does not take into consideration the fact that Customs could come back to you many years later, following the liquidation of your claim and want to see those old documents.
Simply stated, the key here is to make sure that your duty drawback program is compliant from the beginning should Customs come knocking three or six years after payment of your drawback claims. You’ll need to be organized and farsighted enough to make sure that all your ducks (or documents) are in a row (or a file box in storage.)
Because drawback is dealt with by Customs on more or less a case by case basis, the documentation you need to substantiate exportation may be different than the company across the street. For further clarification and specific questions, contact your local Customs drawback office.
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