Technological Innovations from Flexport: More Efficient Claims for Customs Refunds

Flexport recently highlighted how technology can help achieve larger refunds under duty drawback programs. In a webinar, Tim Vorderstrasse, Head of Drawback at Flexport, and Alex Nederlof, Director of Customs, explained how importers and exporters can maximize their claims while ensuring compliance with regulations. Vorderstrasse pointed out that many drawback programs are considered slow, but Flexport's technology aims to speed up this process. Flexport's software automatically optimizes under various regulations, considers tariff complexities, and flags errors in import and export data. With the instant drawback option, companies can receive 70% of their refunds within days, rather than having to wait four to six weeks for payouts from US authorities. The US Customs and Border Protection's duty drawback program allows importers to reclaim up to 99% of duties, taxes, and fees paid on imported goods. This can mean annual refunds in the millions for companies with high import and export volumes. The Government Accountability Office estimates annual drawback refunds to be around $1 billion, while industry players such as C.H. Robinson estimate refunds to be nearly $4 billion annually. Leading companies in the duty drawback sector include Flexport, C.H. Robinson, UPS, and Expeditors. Nederlof highlighted the superior performance of Flexport's technology, which uses proprietary algorithms to analyze comprehensive import and export data. Flexport case studies show that brands in the apparel, consumer goods, and automotive industries have been able to increase their claims by 14% to over 40%, with one apparel company increasing its claim by $230,000 thanks to Flexport. Flexport emphasizes that drawback opportunities exist across industries, whether in apparel, automotive, cosmetics, or aerospace.