By using an outsourced duty drawback program, Specialty Sporting Goods is able to recover over $50,000 in duties per year with minimum outlays and nearly zero internal resources expended.
About Specialty Sporting Goods
Specialty Sporting Goods is a U.S. wholesaler of quality, athlete tested sporting equipment and gear. The company imports the majority of its products from several different vendors in China and then resells them to big box retailers in Spain, Germany, and Finland. On average, the company exports about 65 shipments per year.
The company is headquartered in the Southern United States, employs 178 people, and has annual revenues of $20 million.
Prior to working with Mohawk Global Trade Advisors (MGTA), Specialty Sporting Goods was unaware of the duty drawback program. Each year the company was unknowingly leaving money on the table by failing to recover duties paid on imported goods that were subsequently exported.
Through discussions with MGTA, it was found to be in the best interest of the company to file for drawback privileges. Besides recovering duties paid for merchandise that was exported in the last year, Specialty Sporting Goods was also able to recover additional funds through filing drawback retroactively on the previous three years of exports.
Using MGTA as their duty drawback provider also alleviated Specialty from the burden of using their own internal resources to execute the recovery of funds. Payroll was saved, and the company’s staff was able to maximize their time and energy on growing and maintaining the business.
The only initial investment outlaid was for duty drawback application fees, which totaled $1,500.
By setting up a quarterly drawback filing with MGTA, after deducting commission, Specialty Sporting Goods has been able to realize $50,992.50 in refunds per year. Another $153,000—after deducting commission—was recovered from a one-time retroactive filing for the previous three years.
Find out if your shipments qualify for duty drawback. Call Robyn Moore today at (630) 994-3032 and ask for your free duty drawback assessment.
By Robyn Moore, Duty Drawback Manager
©2017 Mohawk Global Trade Advisors