Sampling Goods Repackaging Goods: If an exporter from Vietnam sends a shipment of rice in 100-pound bags, those bags can be too big for resale in local shops. Bonded warehouses have the ability to repackage the rice into 10 pound bags or some other size weight. Duties and taxes are to be paid on the original size of the order. Repackaged goods can end up in higher profits.
Bonded Warehouse (BW) Financial Benefits: Re-export Goods: If half of an original shipment of electronics is re- exported from the bonded warehouse to outside the country, that part is not subject to duties and taxes. Moving Inventory to Ship Stores Moving Inventory to Duty Free Shops Transferring Ownership of Goods Moving Goods to Another Bonded Warehouse
Duty Drawback Duty Drawback: Duty Drawback is the refund of customs duties and fees paid on imported merchandise that is either re-exported from the U.S. or destroyed under Customs supervision. In most situations, Customs will refund up to 99% of the original duties and fees paid by the importer and will allow the claimant to reach back and claim drawback on export transactions that are up to 3-years old. Because Customs will only refund duties and fees under the drawback program to those claimants that can substantiate the importation, possession and exportation/destruction of the duty-paid merchandise, it is imperative that the claimant maintain the proper records for the required period of time, so that its drawback claims are fully supportable in the event of a Customs audit.
Duty Drawback Duty paid when merchandise enters the U.S. Must then file for a rebate, and can reclaim 99% of duty paid related to subsequent export or destruction. Refunds can take years to be received. Must apply for drawback within three years of Exportation or Destruction. No inverted tariff. Goods can enter U.S. but must be exported or destroyed within five years of importation to receive duty refund. May receive refunds for imported goods purchased from a domestic supplier. A bond is required to file Drawback
Duty Drawback Duty drawback calculation example: Duty drawback calculator:
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