The Right Way to Apply for the Drawback

Understand Logistics & Freight

The Drawback regime is one of the most effective ways for companies to reduce costs in international trade by obtaining tax exemptions or refunds on imported inputs used in exported products. However, to take full advantage of this benefit, businesses must understand the correct way to apply for it.

What Is the Drawback Regime?

The Drawback is a special customs regime that provides tax exemptions or refunds on import duties for raw materials and components used in the production of goods that will be exported. This helps companies reduce production costs, making them more competitive in the global market.

There are different types of Drawback, including:

• Suspension: Exemption from taxes on imported materials before the final product is exported.
• Exemption: Refund of taxes on imported materials previously used in exported products.
• Restitution: Reimbursement of taxes paid on inputs used in exported goods.

Who Can Apply for the Drawback?

Companies that engage in export activities can apply for the Drawback regime, including:

• Manufacturers: Businesses that produce goods for export.
• Trading companies: Companies that purchase products from local manufacturers and export them.
• Service providers involved in export operations.

How to Apply for the Drawback

Applying for Drawback involves a few key steps:

1. Register with SISCOMEX – Companies must be registered with the Integrated Foreign Trade System (SISCOMEX), managed by Receita Federal.
2. Submit a Drawback Request – The request must be filed with the Brazilian Secretariat of Foreign Trade (SECEX), specifying the type of Drawback and listing the products and materials involved.
3. Obtain Approval – The request is analyzed, and if approved, the company receives authorization to operate under the Drawback regime.
4. Maintain Compliance – Companies must track their import and export operations and comply with the established deadlines and regulations to avoid penalties.

Why Work with a Freight Forwarder?

Applying for the Drawback regime can be complex, requiring detailed documentation and strict compliance with regulations. A freight forwarder with customs expertise, like FOX Brasil, ensures that companies make the most of this tax benefit by handling the process efficiently and avoiding costly mistakes.

Optimize Your Trade Operations with FOX Brasil

FOX Brasil has extensive experience in international trade and customs procedures, helping businesses successfully apply for Drawback and maximize their tax benefits. Get in touch with our team today to learn how we can support your company in reducing costs and enhancing global competitiveness!