Why Should Businesses Get Drawback Bonds Insurance?
Any company that imports merchandise into the United States will usually be required to pay duties and taxes on those goods. However, it may be possible to receive a refund, also known as a drawback. To receive the drawback, the imported merchandise (or the items that have been made from that merchandise) typically needs to be exported or destroyed within three years. Moreover, some drawbacks may require drawback bonds insurance.
Reason for Drawback Bonds
The process of getting the payment may be long and complicated. Once the claim has been filed, manufactured goods may be carefully inspected to determine whether they meet the requirement set by drawback regulations. Furthermore, the company seeking the refund will often need to prove that the imported goods had, in fact, been destroyed or exported within the necessary time period.
Getting approval for the refund will often take a while. Fortunately, in some cases, certain refunds may be provided before a complete analysis of the drawback claims and inspection of goods. However, in order to receive the payments, the company seeking the refund will typically need to get a drawback bond insurance that guarantees that the CBP will get back any drawback payments that were greater than the actual refund amount owed.
A drawback can be extremely beneficial, since it can allow businesses to receive their payment faster. To get this benefit, drawback bonds insurance is often imperative.