On February 24, 2016, the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) was signed into law. The primary goal of the TFTEA is to encourage international trade through the simplification of U.S. trade regulations. In particular, duty drawback (drawback), a long-standing yet complex trade mechanism allowing for duty refunds on goods imported to the U.S. and subsequently exported, will create opportunities for broader qualification through the easing of product substitution rules, a simplified filing time frame, and modernized record-keeping requirements.
These new changes come at a time of further automation of the drawback process for United States Customs and Border Protection through the Automated Commercial Environment, and will transform the way claimants manage their duty drawback programs in the future.
As new U.S. duty drawback regulations will go into effect on February 24, 2018, what can companies do to prepare? This article addresses strategic and transactional planning that can result in significant benefits to importers and exporters, and can reduce risk through processes not captured in current controls.
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The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. This article represents the views of the authors only, and do not necessarily represent the views or professional advice of KPMG.