Why Expertise Matters
The Customs Modernization Act introduced “informed compliance” and “reasonable care” standards that place responsibility on drawback claimants for ensuring accuracy. This means selecting the right partner to administer your program isn’t just about efficiency—it’s about compliance.
Drawback is specialized work requiring specific systems, expertise, and processes. General customs brokers who handle occasional drawback claims often lack the infrastructure to manage programs effectively or the experience to navigate complex situations.
Technical Capabilities to Evaluate
Assess potential providers on their software and systems—purpose-built drawback systems versus adapted general-purpose tools, data handling capabilities—ability to ingest, validate, and match data from multiple sources, claim preparation and filing efficiency—automation level and processing speed, and CBP relationship and filing track record—error rates and claim acceptance history.
Modern drawback requires modern systems. Providers still relying on manual spreadsheet processes will struggle with volume and accuracy as your program grows.
Experience and Track Record
Look for demonstrated experience with programs similar to yours—same industry, similar volume, comparable complexity. Ask for references from current clients and inquire about types of drawback handled—unused, manufacturing, substitution, direct identification, scope of services—data gathering through claim filing and payment, and results achieved—refund amounts, processing times, compliance record.
Be wary of providers who claim to handle “all types of drawback” but can’t provide specific examples or references for your situation.
Data Services and Technology
Since data quality makes or breaks drawback programs, evaluate how potential providers handle data challenges. Do they offer data extraction and formatting services? Can they integrate with your systems or your brokers’ systems? How do they handle data quality issues—do they identify problems proactively or blame you when claims fail?
The best providers view data management as a core competency, not an afterthought. They invest in tools and processes to maximize data quality because they understand the downstream impact on claims.
Fee Structures
Most drawback providers work on commission—a percentage of refunds recovered. This aligns incentives since providers only earn when they recover money for you. Typical rates range from 10-20% of refunds, depending on program complexity and volume.
Be cautious of rates that seem too low—they may indicate providers who cut corners on data quality or compliance. Also watch for hidden fees for setup, data processing, or other services that inflate effective costs.
Understand exactly how and when you’ll be charged before committing to a provider.
About TLR Drawback Services
TLR’s drawback team combines decades of specialized experience with modern technology to maximize duty recovery for our clients. From program evaluation through claim filing and payment, we handle the complexity so you can focus on your business. Contact us to explore your drawback opportun
