What is the first step to obtain a duty drawback?

The first step to obtain a duty drawback is to file a drawback proposal with the commissioner of customs. This step is essential because it formally initiates the process of reclaiming duties paid on imported goods that are subsequently exported.

By submitting a drawback proposal, a business provides the customs authority with necessary details about the imports and exports, along with any required documentation. This proposal must be approved before the business can claim a refund of the duties, making it a critical first action in the duty drawback process.

Paying customs duties upfront before exporting, while a factual step taken during imports, does not initiate the drawback process itself. Waiting for a specified time after export to request a drawback is not required since businesses can begin the process by filing the proposal almost immediately after export. Receiving approval from foreign customs officials does not come into play at this stage, as the duty drawback process is governed primarily by the customs authority of the exporting country.