The Prior Notice Requirement
Under standard drawback regulations, claimants must notify CBP before exporting goods intended for drawback claims. This notice allows CBP the opportunity to examine the merchandise and verify it matches claim documentation. Historically, this requirement created significant operational friction.
The Waiver of Prior Notice eliminates this requirement for qualified claimants, allowing exports to proceed without advance notification to CBP. This streamlines operations dramatically and is essential for any practical drawback program.
Types of Waivers
Two types of waivers are available. The Waiver of Prior Notice for Future Exports or Destruction is a blanket waiver covering all future exports. Once approved, you can export without notifying CBP, maintaining only the records required to support eventual claims.
The One-Time Waiver for Past Exports or Destruction covers historical exports retroactively. This waiver establishes a date before which exports can be claimed without having provided prior notice—essential for companies implementing drawback programs with retroactive claims.
Most new programs require both waivers: the one-time waiver to cover historical exports and the ongoing waiver for future operations.
Application Process
Waiver applications are submitted to CBP and must demonstrate that your company has adequate record-keeping systems to document exports, that you can produce required documentation upon CBP request, and that you have procedures to ensure compliance with drawback regulations.
The application includes information about your export processes, documentation practices, and compliance controls. CBP typically processes waiver applications within 90 days, though timing can vary.
Record Retention Requirements
Waivers don’t eliminate documentation requirements—they shift the timing. Instead of providing documentation before export, you maintain records that can be produced if CBP requests verification.
Required records typically include export bills of lading, commercial invoices, packing lists, proof of delivery, and for exports to Canada, the Canadian B3 customs entry. For Mexico, the pedimento serves this function. These records must be retained and accessible for the full drawback claim period.
Operational Impact
Without waiver privileges, drawback would be operationally impractical for most companies. Providing seven-day advance notice for every export, coordinating potential CBP examinations, and managing the resulting delays would overwhelm normal logistics operations.
With waivers in place, exports flow normally through your standard processes. Documentation is maintained for potential claims, but nothing special happens at the time of export. This integration with normal operations is what makes modern drawback programs feasible.
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 opportunity.
