7 Best Duty Drawback Software for Automation

Did you know your duty drawback company might be missing out on millions? U.S. companies pay over $100 billion in import duties each year, but customs only refunds $2-3 billion annually. The surprising fact is that $50 billion more remains eligible yet unclaimed.

The gap exists in part because duty drawback involves complex and time-consuming processes. The customs procedure, which dates back to 1789, lets businesses claim refunds on import duties. These claims can cover a five-year period from the goods’ import date. Claim errors can result in delays, rejections, or penalties. On top of that, today’s business climate makes every cost saving crucial. This reality makes duty drawback specialists and automation solutions more valuable than ever.

The good news is that qualified drawback service providers know their way around claim preparation, regulatory compliance, and documentation. These experts make sure you receive all entitled refunds within legal boundaries. In this piece, we’ll look at the 7 best duty drawback software solutions to automate the process. Pax AI stands out as the top choice to help businesses maximize their refunds.

1. Pax AI

Pax AI leads the duty drawback software market and changes how businesses get back their import duties. A team of duty drawback experts and researchers from MIT, Google, Amazon started this company. They blend industry knowledge with innovative technology to create something special.

Key Features

The platform comes with AI-powered features that make the duty drawback process simple:

• Zero-Cost Eligibility Assessment: You can check if you qualify at no cost. Just share your simple import/export details without any commitment.
• AI-Driven Refund Maximization: Their machine learning algorithms look at import data and find the most money you can get back. Users get 15% more in refunds compared to old methods.
• Efficient Data Processing: The system works 99% faster than manual methods. What used to take months now takes days or even minutes.
• Unified Data Integration: The system naturally handles import data from PDFs, ERP systems, and ACE without any manual work.
• Live Dashboards & Analytics: You can see your claim progress and expected refunds through accessible interfaces that show your duty drawback strategy clearly.
• Simplified Compliance: The system handles customs regulations automatically. This cuts down paperwork and mistakes.

Pax AI works differently from older systems. It has ABI certification from Customs and Border Protection (CBP) and sends claims straight to the government. This makes sure all claims meet the rules while working faster.

Pax AI Pros and Cons

Pros:

1. Better Refunds: Their algorithms find more recoverable duties. Users typically get 15% more money back than with traditional methods.
2. Time Savings: The system works 99% faster and turns months of work into a quick process.
3. Works for All Sizes: Small importers can now benefit because there’s no minimum threshold. They might get back 3-5% of their revenue.
4. Easy Data Integration: The system handles different data types automatically. No manual entry needed.
5. Accessible Design: Anyone can use the platform without knowing duty drawback details.
6. Live Updates: Detailed dashboards show claim status and expected refunds.
7. Team Platform: Importers, customs brokers, and tech companies can work together to file claims efficiently.

Cons:

1. New Company: Started in 2024, Pax AI hasn’t been around as long as others.
2. Government Wait Times: New filers still wait 2-6 months for government approval.
3. Early Days: The company launched recently, so long-term results aren’t available yet.

After government approval, things move quickly. Regular filers usually get their money within 3-6 weeks. Pax AI just raised $4.5 million in seed funding. This shows investors believe in them and helps improve their platform. The money will help develop the platform, grow the core team, and reach more customers.

The company also works with duty drawback companies, customs brokers, and freight forwarders. These partners can offer duty drawback services without buying expensive software or hiring experts.

2. Alteryx

Alteryx has a powerful data analytics platform that handles complex duty drawback processing needs well. This business intelligence tool has gained popularity among departments of all sizes. Companies can now make their duty drawback claims faster through automation and save time and resources.

Key Features

Alteryx comes with several key features that make duty drawback process better:

• Data Extraction and Normalization: The platform quickly pulls and standardizes data from SAP, broker feeds, and even messy PDFs. This removes manual data prep work and the boring task of copying items from scanned invoices.
• Automated Record Matching: Alteryx matches CBP 7501 entries with export invoices automatically. It proves quantities, values, and dates right with custom workflow logic that fits unused, manufacturing, or substitution claims.
• Claim File Generation: The system creates complete packages to submit to CBP. These include matched entries, proof of export, duty payments, and a detailed audit trail that meets compliance needs.
• Accelerated Refund Cycles: You don’t have to wait until quarter-end. Alteryx starts the claim process right when goods leave U.S. borders, which speeds up refund collection.
• Self-Service Capabilities: Customs teams can run processes weekly or monthly without IT support or expensive system integrations.

Alteryx’s drag-and-drop interface lets users build workflows without much coding knowledge. The platform connects to more than 100 data sources, including databases, APIs, cloud platforms, and flat files. This makes it valuable for companies that use different data systems. Companies handling duty drawback will find Alteryx useful. It offers advanced analytics with predictive modeling tools that spot risk areas and predict changes that need action.

Alteryx Pros and Cons

Pros:

1. Duty Drawback Automation: Alteryx automates everything from data collection to claim submission. This can save thousands of manual work hours.
2. User-Friendly Interface: Teams without IT backgrounds or coding skills can use the drag-and-drop features easily.
3. Detailed Data Integration: Links to over 100 data sources make it simple to bring together information from various systems.
4. Advanced Analytics: Users get predictive analytics, machine learning, and spatial analysis tools to improve duty drawback strategies.
5. Process Documentation: Teams can look at, change, and improve workflows created in Alteryx.

Cons:

1. High Cost: Alteryx gets pricey compared to open-source options. Professional licenses start at USD 5,000.00 per user yearly.
2. Scalability Limitations: The system might slow down with very large datasets.
3. Proprietary Format: You can’t export Alteryx workflows to open-source systems, which might lock you in with the vendor.
4. Limited Visualization Capabilities: The visualization tools aren’t as good as dedicated BI tools. You might need other platforms for advanced visuals.
5. Windows-Only Support: Mac or Linux users can’t use the platform as it works only on Windows.

Alteryx helps duty drawback specialists handle complex tasks like matching import and export records, checking data, and creating claims. Companies looking to get back some of the USD 50 billion in eligible but unclaimed refunds might want to look at Alteryx along with specialized tools like Pax AI.

3. Oracle Global Trade Management

Oracle Global Trade Management (GTM) is part of Oracle’s supply chain management ecosystem. The platform provides a detailed solution that helps businesses handle international trade compliance and duty drawback processes. This resilient system helps companies automate cross-border transactions while following global regulations that change frequently.

Key Features

Oracle GTM gives businesses powerful tools to simplify their duty drawback processes:

• Duty Drawback Automation: The platform helps businesses check if imports qualify for duty drawback. It automates essential processes like document collection, regulatory compliance, and filing duty drawback requests with government bodies.
• Centralized Compliance Management: Oracle GTM works as a central hub for all trade-related data. This creates better visibility and control over trade processes from start to finish.
• Trade Incentive Program Processing: The software helps companies find and use trade incentive programs. These include duty drawbacks, bonded warehouses, foreign trade zones, and inward/outward processing.
• AI-Powered Classification: Machine learning helps logistics managers quickly classify new and modified products based on tariff schedules and export control lists.
• Landed Cost Simulation: The platform calculates estimated landed costs for multiple scenarios at once. Users can see supply chain costs including transportation, handling fees, insurance, duties, and taxes.
• Automated Workflows: Oracle GTM boosts productivity through unique workflow agent technology. Companies can model both simple and complex processes.
• Global Application: Businesses can use these features worldwide. Users don’t need to learn new processes for each country, and IT doesn’t need separate applications for different jurisdictions.

Oracle GTM lets companies manage cross-border trade processes from one place. They can track orders and shipments, reduce tariff exposure, and adapt when trade regulations change.

Oracle GTM Pros and Cons

Pros:

1. Comprehensive Integration: Oracle GTM blends naturally with other Oracle applications like Oracle Cloud ERP and Oracle Supply Chain Management. This creates a unified platform for global trade activities.
2. End-to-End Visibility: The platform gives unmatched visibility and control over orders and shipments across the global supply chain.
3. Regulatory Compliance: Oracle GTM screens transactions automatically for restricted parties, sanctions, and embargoes. This helps businesses follow government restrictions.
4. Document Management: The system manages document workflow efficiently. Users can preview and manage document revisions before sharing them with supply chain partners.
5. Analytics Capabilities: Oracle Global Trade Intelligence lets users build custom dashboards, track key metrics, and fix issues quickly.

Cons:

1. Complex Implementation: Like many enterprise solutions, Oracle GTM takes considerable time and resources to implement.
2. Steep Learning Curve: The platform’s detailed nature makes it harder to learn than simpler duty drawback solutions.
3. Higher Cost Structure: Small businesses looking to automate duty drawback processes might find Oracle GTM’s enterprise pricing too expensive.
4. Customization Needs: Some businesses need extensive customization to meet their specific trade compliance requirements.
5. Resource Requirements: Using all features effectively might need dedicated staff who know both the platform and trade compliance well.

Oracle GTM is a resilient option for larger organizations that need a detailed solution. It handles duty drawback and all aspects of global trade management. However, companies focused mainly on maximizing duty drawback returns with minimal overhead might prefer specialized solutions like Pax AI.

4. Descartes ABI Software

Descartes has been a trusted provider of customs brokerage solutions for 15 years. Their Automated Broker Interface (ABI) software helps businesses optimize the duty drawback process. The company serves as a U.S. Customs and Border Protection (CBP) approved vendor and provides reliable tools to claim refunds on import duties, taxes, and fees.

Key Features

Descartes ABI software offers a detailed set of tools that make customs compliance simpler:

• Streamlined Duty Drawback Processing: The platform helps businesses get refunds of certain duties, taxes, and fees. It speeds up potential refunds through automated filing.
• Automated Data Entry: The software uses clear, logical data entry screens. It captures information live and distributes it across various filing applications to improve accuracy and speed.
• Product File Management: A detailed Product File keeps complete entry line item details including SKU, model, HTS, and other government agency (OGA) information.
• Entry Type Support: Users can handle specialized entry types including electronic In-bond (QP/WP), FTZ entry, warehouse entry and withdrawals, American goods returned, and reconciliation.
• Drawback Module: This ABI version sends claims directly to U.S. Customs and prints needed forms including drawback claim summaries, CF-7551, CF-7552, and CF-7553.
• Third-Party Integration: The software connects smoothly with EDI and XML data integration and links to third-party accounting applications.

Descartes offers a hosted, on-demand solution that makes shared data collection easy for brokers and importers. They can prepare customs entries and handle post-entry compliance tasks. The software merges with existing systems and grows with organizations from small independent brokers to global enterprises.

Pros and Cons

Pros:

1. CBP Certification: Descartes meets all regulatory requirements as a CBP-approved vendor.
2. Extensive Experience: The company brings 15 years of expertise to customs filing solutions.
3. Detailed Functionality: The platform handles many customs processes beyond duty drawback, including ISF, cargo release, eBond, and in-bond transactions.
4. Scalability: Organizations of all sizes can use this solution effectively, from small brokers to global enterprises.
5. Cloud-Based Architecture: Users get sophisticated features without needing extensive in-house infrastructure.

Cons:

1. Cost Structure: Smaller organizations might find the setup fees, monthly charges, and transaction costs too expensive.
2. Complex Implementation: The system needs significant time and resources to set up properly.
3. Learning Curve: New users might need time to master the platform’s many features.
4. Focus Breadth: The platform covers many customs processes, which might affect its duty drawback-specific capabilities.

Descartes has grown through strategic collaborations, including buying NetCHB for $40 million with potential performance-based payments up to $60 million. This purchase improved Descartes’ customs filing solutions, particularly for Section 321 Type 86 ecommerce shipments.

Businesses looking for an experienced duty drawback specialist will find Descartes a reliable choice. The company offers years of industry experience but requires more investment than newer, specialized alternatives.

5. J.M. Rodgers Drawback Platform

J.M. Rodgers, a family-owned business that’s 71 years old, stands as the largest duty drawback company by volume in the United States. The company has kept a perfect track record with US Customs and Border Protection (CBP) since its inception.

Key Features

Their proprietary customs-approved software platform offers specialized capabilities:

• In-house technology: The custom-programmed software creates tailored packages that match each client’s needs. The core team of eight data experts streamlines automation for faster processing.
• Complete verification: Their platform has built-in systems to confirm data before submitting it to Customs.
• Extensive audit process: They audit 100% of drawback claims and compare data against source documents. These documents include Import Entry, Commercial Invoice, and Proof of Export Documents.
• Expert-driven approach: Eight Licensed Customhouse Brokers with over 100 years of combined experience power the platform. Twelve Senior Drawback Account Specialists bring more than 208 years of collective experience.
• ISO-9001-2015 certification: Their quality management system puts customer satisfaction first, which results in hands-on account management.

Advanced electronic data transfer systems and client summary management reports adapt to client needs. This approach helps maximize refund potential throughout the duty drawback process.

Pros and Cons

Pros:

1. Proven expertise: Their staff brings over 300 years of collective experience and handles complex drawback scenarios in any discipline.
2. Financial protection: A million-dollar insurance policy safeguards against potential risks.
3. Audit support: Staff members attend all drawback audits without extra charges.
4. Proven results: Case studies reveal major improvements for clients. One chemical company saw a 650% increase in drawback yield.
5. Specialized focus: J.M. Rodgers focuses exclusively on duty drawback, unlike general trade management solutions.

Cons:

1. Traditional approach: Newer AI-driven alternatives might offer more automation.
2. Limited self-service options: They provide a hands-on service rather than self-directed tools.
3. Narrow focus: The company excels at drawback but doesn’t offer broader trade management capabilities like Oracle GTM.

Businesses looking for specialized duty drawback expertise with proven results will find J.M. Rodgers combines technology and human experience to maximize refunds effectively.

6. Comstock Drawback Software

Comstock is one of the most experienced U.S. duty drawback program providers. They help large multinational companies reclaim import tariffs. Their 30-year old industry presence and strategic multi-layered approach makes them leaders in maximizing drawback opportunities for clients.

Key Features

Comstock’s software stands out because of its customization capabilities:

• Fully computerized systems with custom software programmed to claim 100% of eligible drawback
• In-house programming team that builds tailored solutions for each individual client
• Proprietary technology that adapts to regulatory changes and fixes issues quickly
• ACE integration for submitting all claims to CBP through the Automated Commercial Environment

The company’s custom software for each client’s needs sets them apart from standard solutions. Their in-house programming team adapts to new regulations without the delays typical of third-party developers.

Pros and Cons

Pros:

• Extensive experience with large multinational companies
• Custom-tailored solutions for each client’s specific needs
• Regulatory adaptability with software that adapts to changing requirements
• Expert customs brokerage services using a multi-layered approach
• Complete ownership of software development for quick issue resolution

Cons:

• Limited transparency in pricing structure
• Focus on large companies doesn’t suit smaller businesses
• Less automation than newer AI-powered alternatives
• Potential learning curve with client-specific interfaces

Comstock excels as a choice for large multinational companies that need an experienced duty drawback specialist with custom software solutions.

7. Integration Point (Thomson Reuters)

Thomson Reuters acquired Integration Point in 2018, and since then it has grown into a major player in global trade management. This merger helped Thomson Reuters expand its Global Trade solution. Now they offer a detailed end-to-end platform for trade and compliance professionals.

Key Features

Integration Point’s global trade management platform comes with specialized duty drawback capabilities:

• Global Coverage: A single web-based platform gives users local knowledge and visibility in more than 200 countries and territories
• Detailed Duty Management: The software makes duty drawback claims easier. Users can get refunds on customs duties for imported goods that they later export or destroy
• Integrated Supply Chain Solutions: The platform does more than just drawback. It handles import/export management, product classification, free trade agreement qualification, export screening, foreign-trade zones, and supply chain security
• Claim Identification: Users can find qualifying transactions for duty exemptions quickly because the system spots them automatically
• Customs Authority Integration: Businesses can recover eligible duties faster because the platform submits claims directly to customs authorities

Pros and Cons

Pros:

• Thomson Reuters provides extensive resources and worldwide presence
• The solution works for all industries, locations and trade programs
• Companies can stay compliant while saving money on supply chain costs
• Works smoothly with other  tax and global trade solutions

Cons:

• Smaller businesses might find this enterprise-level solution hard to afford
• Not as focused as companies that only do duty drawback
• Service might vary during acquisition integration
• Getting all features up and running can be complex

Integration Point is a solid choice if you want an enterprise-level solution that handles duty drawback as part of broader global trade management. However, companies that just want to maximize duty drawback returns might do better with more specialized tools.

Conclusion

Businesses have left millions of dollars unclaimed since 1789 when import duty reclamation through drawback programs began. Without doubt, many companies avoid claiming their rightful refunds because of complex filing requirements and time-consuming manual work. The software solutions we reviewed above can revolutionize this challenging process into simplified processes.

Pax AI stands out as the best platform among all options we looked at. Their AI-driven approach gets average of 15% higher refunds and cuts processing time by 99% compared to traditional methods. On top of that, it has performance-based pricing that removes upfront costs. This makes duty drawback available to businesses of all sizes for the first time.

Notwithstanding that, each platform has its own strengths based on your needs. Alteryx gives you strong data analytics capabilities beyond duty drawback. Oracle GTM provides detailed global trade management features for large enterprises. Descartes ABI Software comes with CBP-certified filing capabilities and customs experience. J.M. Rodgers brings decades of specialized expertise with risk-free pricing. Comstock creates customized solutions for multinational corporations. Integration Point handles duty management within a broader global trade framework.

The numbers tell the story – $50 billion in eligible refunds go unclaimed every year. Your business could be missing out on important revenue opportunities. You can choose Pax AI’s groundbreaking technology or another solution that fits your needs better. Automating your duty drawback process is a smart financial move.

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