How To Maximize Your Export Profits
Entrepreneur.com:
Under U.S. law, three primary types of drawback are allowed: unused, manufacturing and rejected merchandise drawback:
*Unused merchandise drawback — Merchandise that’s imported or substituted for commercially interchangeable merchandise and exported without being used for its intended purpose in the U.S. is eligible for this drawback. Even if the imported or substituted merchandise undergoes certain incidental operations such as repackaging, unused drawback is still available.
* Manufacturing drawback — This drawback applies to imported merchandise or substituted goods of the same kind and quality used to manufacture a new and different article. If the manufactured article is subsequently exported from the U.S., a drawback claim may be filed on the imported or substituted merchandise that was used to produce the exported article.
* Rejected merchandise drawback — Finally, if the goods were imported without the consent of the consignee, were defective when imported or did not conform to specifications, the goods may be returned to the foreign supplier and a rejected merchandise drawback claim may be filed upon exportation. As with unused merchandise drawback, the products must not be used for their intended purpose prior to exportation.
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