Unlike Cervantes, Fred Astaire, or even Lil Wayne who believe “the sky’s the limit”, when it comes to duty drawback – we know that the sky is NOT the limit.  While drawback does not apply to every situation, overall has been shown to be a versatile program that enables the recovery of import duties in a variety of unique ways.

My wife and I went on our first cruise a few years ago which has since become our new favorite type of vacation, but did you know that the bunker fuel that a ship consumes during its journey may be eligible for drawback?  For those of you who have not gotten your sea legs yet and prefer to fly to your destination, even the jet fuel that the airplane burns may also be eligible.  Even items launched into outer space may be eligible.  In fact, our company has assisted a US satellite manufacturer to claim manufacturing direct identification drawback on imported components that were assembled onto a satellite that was launched from the Kennedy Space Center at Cape Canaveral, FL.

But how do you support these kinds of transactions for recoveries?  A shipment by land, sea, or air is one thing, but a rocket launch is another.  One of the major challenges for drawback claimants is proof of export as it must establish “the date and fact of exportation” (19 C.F.R. § 191.72).  The scenario is rather simple for supplies laden on vessels (CBP 7514 is a key document), however, proof of export for a satellite launch may come from a collection of unique documents:  Press Release confirming launch, U.S. Dept. of Census AES Filing showing US launch base location, U.S. Dept. of State DSP-5 Permanent Export License for Satellites, Installation Data Sheets, and Commercial Invoices to name a few.

Drawback is currently available on satellites sent into permanent orbit in outer space.  With the Musk’s and Branson’s of the world pushing to make space travel more accessible, will future drawback be available on goods shipped to help build a colony on Mars?  Who knows – but one thing is certain, the sky is NOT the limit!

 

From the desk of: Chris Rittinger