Eligibility for Simplified Fixed Amount Duty Drawback when Exporter and Manufacturer are different (Contract Manufacturing)
Machine translated
Our company is the exporter, but we do not manufacture the products ourselves; instead, we outsource production through contract manufacturing and export the finished goods. Regarding the products, there are no raw or auxiliary materials that our company purchases separately and provides to the manufacturer (at most, only items required for packaging, such as boxes or stickers). In this case, can our company, as the exporter, receive the simplified fixed amount duty drawback? I am confused because some online sources say one must be the manufacturer, while others say it is possible even if you do not manufacture directly, provided you have a contract manufacturing agreement to substitute for a factory registration certificate. If simplified fixed amount duty drawback is possible, I would appreciate it if you could let me know the required documents. For your reference, if our company is eligible for the simplified fixed amount duty drawback, the export permit will be issued with the drawback type as '2. Manufacturer'—will this cause any issues?
Answer 1
- 0✓Since this transaction does not involve the direct provision of raw materials, it is judged to fall outside the scope of manufacturers eligible for the simplified duty drawback system.Machine translated
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