U.S. firms that import materials or components that they process or assemble for re-export may obtain refunds of all duties paid on the imported merchandise, less 5 percent to cover customs costs.

Question

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U.S. firms can utilize the duty drawback program, which allows for the refund of duties, taxes, and fees paid on imported merchandise that is later exported, but the refund is typically up to 99% of the original duties paid, not "all duties less 5 percent." The 1% retained is to cover administrative costs.

US Firms That Import Materials or Components That They Process