DL Trading, LTD partners with existing U.S. importers and exporters to realize previously undeveloped duty-drawback recoveries associated with the importation and exportation of all products into and from the United States. Our unique service increases our partners’ profitability by up to 2% of the total cost of goods sold. Companies that are shipping to and from the United States can file directly for duty drawback recoveries. However, in the majority of cases, companies have an imbalance of either import volumes or export volumes, both of which restrict their ability to maximize duty recoveries. DL Trading’s exclusive material trade lanes absorb these excess volumes, and the benefits are shared directly with all partners.
DL Trading develops partnerships with select importers and exporters to establish a fully compliant process that allows all parties to realize the maximum benefits attached to known tax and duty recovery programs offered by the United States government.
DL Trading is a unique trading partner whose program results in significant increases in the gross margins for companies that import product(s) to the United States, as well as for companies that export product(s) from the United States. This program frequently relieves certain liabilities and administrative burdens under which our partners previously operated.
DL Trading's services are not intended to displace our partner’s existing internal tax and/or duty recovery programs. Rather, they are intended to work with and enhance such programs, ensuring that our partners are compliantly positioned to maximize cost savings by establishing opportunities where they have not existed before.
DL Trading maintains broad import and export material positions with many suppliers and customers encompassing multiple product lines. As a result, we are able to match various, otherwise unrelated imports and exports in a way that individual companies cannot. For over a decade, DL Trading has developed an unsurpassed expertise in administering these complex programs.
Having served as tax and duty recovery consultants for many years and realizing that even the most well-run, aggressive drawback program typically only recovers a portion of duties paid — for example, historically less than 2% of total duties paid each year is refunded in drawback payments — the founders of DL Trading established the company in 2000 based upon this unique trading concept. This concept has been validated on numerous occasions through binding rulings and information letters from U.S. Customs and Border Protection (“CBP”) as well as by various prestigious legal firms with expertise in customs law.
Partners of DL Trading realize an increase in their gross margins resulting from a significant reduction in costs. This benefit is derived directly from the partner’s newfound ability to participate in the recovery of additional duties that could not be compliantly recovered but for our partnership and the breadth of our established material positions, either on the import or export side.
Our program protects our partner’s confidential information. DL Trading acts as a “firewall” between each participating partner
Our program increases partner cash-flow advantages as all duties, taxes and fees are paid upon entry by DL Trading
Our program increases profitability by up to 2% of the total cost of goods imported or sold for export by our partner
Our program reduces the liability and risk to our partners as DL Trading, assumes all liability by becoming the importer/exporter of record and the drawback claimant
DL Trading assumes all responsibilities associated with import and export compliance issues, broker interface and drawback compliance matters
Our program allows partners to participate in additional recoveries that would not normally be available without our service
The financial benefits are realized by our partners immediately upon import or export, at the transaction level
DL Trading is a C-TPAT Tier II-Validated importer with all Tier II benefits
What about my company’s internal drawback opportunities?
The DL Trading concept in no way interferes with your existing drawback program, rather it addresses those imports and exports that are in excess of what your company can use internally.
Why can’t my company do this on its own?
Although some importers and exporters may be in a position to initiate such programs on their own to a limited extent, the majority of companies have either excess imports or exports that will require DL Trading’s intermediary trade service program to realize the maximum benefits available.
Will the additional need to handle material by DLT disrupt my supply chain?
DL Trading can use the same brokers, carriers and other logistics providers that your company is currently using. To that end, there should be minimal change in your current operations. Further, by using your same providers, you will have full knowledge of all the transactions involved so that you can be aware of the position of your materials at any point in time.
Instead of actually exchanging or doing a purchase/sale on the material, can DL Trading act simply as our agent as the exporter or importer of record?
No. DL Trading must have title to the goods and risk of loss is passed to DL Trading in order to satisfy the requirements of the regulations. For imports, DL Trading must be the importer of record; however, this benefits your company as the service relieves your company of importer-of-record liabilities as well as potentially providing cash-flow advantages. For exports, DL Trading does not have to be the exporter of record, although this is the preferred approach. We can use substituted domestic material to form the required commercial relationship and satisfy the regulatory requirements. These related transactions can be established through buy and sell or material exchange transactions under standard recognized incoterms.
What about confidentiality?
DL Trading provides full confidentiality between any importers and exporters and acts as a firewall by not disclosing confidential information. Unless both parties desire and mutually agree to know who is on the import and export side, full confidentiality is maintained. In fact, there may be added confidentiality, especially on the import side, since DL Trading, not our partner company, will now be the importer of record.
DL Trading, LTD
22762 Westheimer Pkwy, Ste 540
Katy, TX 77450
For more information please email us here