The short answer
A licensed customs brokerage can add duty drawback by filing drawback claims for its importer clients in ACE through ABI; filing drawback for others is customs business, which its license already covers. What it needs is a power of attorney and the import and export records from each client, a process for notices of intent and waivers, a bond for clients who want accelerated payment, and software to match imports to exports and assemble claims. Most first claims come from history, because a claim can be filed up to five years after the import date.
Key takeaways
- Filing drawback for another company is customs business, so it takes a customs broker license, which you already hold (19 CFR 111.1).
- Per client you need a power of attorney, the import entry data, the export or destruction evidence, and, for manufacturers, a drawback ruling.
- Accelerated payment needs an approved application and a bond large enough to cover the estimated refund.
- Pricing is yours to set. On flat-license software, the whole spread between your fee and your costs stays with you.
How to launch a drawback service
1.Choose the model
Run drawback in-house on software you license, or refer clients to a contingency filer or specialist. In-house keeps the margin and the client; referring is simpler but the provider keeps a share of every refund. See drawback software for customs brokers.
2.Set up drawback filing
Drawback claims are entry type 47, filed through ABI; they cannot be filed through the ACE Portal. Confirm your ABI setup and software support drawback before the first claim. See how to file a drawback claim.
3.Onboard the first clients
Get a power of attorney, then the data: the client's duty-paid import lines (from your own entry records or the client's ACE report ES-003) and its export records (AES reports such as AES-202, plus commercial documents). Reports ES-609 and ES-610 show import lines that someone else already used on a drawback claim. See finding unclaimed drawback.
4.Handle notices and waivers
Repeat exporters should apply for a waiver of prior notice (19 CFR 190.91, decided within 90 days), so shipments don't need a Form 7553 notice each time. Manufacturing clients need a manufacturing drawback ruling before they claim.
5.Arrange bonds for accelerated payment
Clients who want refunds in weeks rather than years need accelerated payment: a written application and a bond sufficient to cover the estimated drawback. See how long drawback takes.
6.Match, file and report
Software matches import lines to exports, applies the lesser-of rule on substitution claims and assembles the claim; you review and file under your filer code. Give clients a clear status view, so drawback becomes a reason to stay.
Should a brokerage refer drawback work out or bring it in-house?
Refer it out if drawback requests are rare and you have no capacity: it costs nothing up front, but the provider keeps a share of every refund, and some contingency filers run their own customs brokerages, so they work directly with your client. Bring it in-house if you already file the client's entries: you have the data and the power of attorney, you keep the margin, and drawback becomes another service the client buys from you. Specialists remain a good referral for unusually complex manufacturing programs.
How do customs brokers price drawback services?
Common models are a percentage of each refund (contingency), a per-claim fee, or a monthly retainer, and they can be combined. Contingency is easy to sell because the client pays only when CBP pays. With flat-license software, the broker sets the price and keeps the whole spread; with a contingency provider behind the broker, the provider takes its share first. See drawback contingency fees.
What does a customs broker need to file drawback claims for clients?
- A customs broker license (filing drawback for others is customs business).
- ABI filing that supports drawback (entry type 47).
- A power of attorney from each client.
- Each client's import entry data and export or destruction records.
- Form 7553 notices or waivers of prior notice.
- A bond, for clients who take accelerated payment.
- Software to match imports to exports and assemble claims.
Where does Stable Software fit?
DrawbackAI by Stable Software is built for this: brokers white-label it for their importer clients and file under their own filer code. Flat software license. No contingency, no percentage of the refund. Your filer code, your POA, your client. See DrawbackAI and Stable Software for brokers.
Sources
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Frequently asked questions
How can a customs brokerage add duty drawback as a new revenue line?
File drawback claims for your importer clients in ACE through ABI, which your broker license already covers. Collect a power of attorney and each client's import and export records, set up notices and waivers, arrange bonds for accelerated payment, and use software to match imports to exports. Start with the last five years of each client's history.
What does a customs broker need in place to file drawback claims for clients, like bonds, ACE access, and software?
A customs broker license, ABI filing that supports drawback (entry type 47), a power of attorney from each client, the client's import and export records, Form 7553 notices or a waiver of prior notice, a bond for clients who want accelerated payment, and matching software.
Should my customs brokerage refer drawback work to a specialist or bring it in-house?
Bring it in-house if you already file the client's entries: you keep the margin and the relationship. Refer it out if requests are rare, knowing the provider keeps a share of every refund and may also offer brokerage to your client.
How do customs brokers usually price duty drawback services for their importer clients?
Most charge a percentage of each refund, some a per-claim fee or a retainer. With flat-license software, the broker sets the price and keeps the whole spread.