Drawback bonds enable the importer of foreign goods to request a refund of duty that was paid when the goods were brought into the country. This process can sometimes take up to a year to complete, however if the principal involved qualifies for accelerated payment, the wait time can be cut down to as little as two months. Without accelerated payment, the principal also is only guaranteed up to 99% of the original amount paid, while accelerated drawback will refund 100%.
In order to claim drawback, or file for a bond, the imported goods must be exported back out of the country. A common application for drawback bonds is for temporary imports, or goods that will only remain in the country for a short time before being exported. The time of export must be within two years of the date the goods were initially imported. However, if the goods are consumed or destroyed within that two-year period, a principal may still be eligible for drawback. This includes if the imported goods are used to manufacture a new product that will be later exported.
The process of claiming drawback usually begins by consulting an insurance company that specializes in trade, customs, or bonds involving imports or exports. If you are considering filing for drawback bonds, get in touch with someone that can advise you on the best way to proceed.