Simplifying Complexity: Unifying Duty Drawback for Global Retail

Client Profile: A Global Retail & Distribution Leader

Industry: Retail & Distribution

Challenge: A decentralized supply chain led to scattered data and missed duty recovery opportunities.

Solution: A centralized, digital drawback hub to standardize HTS codes and automate claims.

The Challenge: The Cost of Decentralization

For a company built on the philosophy of simplicity, our client’s supply chain is anything but simple.

Behind their minimalist product design lies one of the most complex logistics networks on earth. Every item passes through multiple suppliers, countries, and customs zones. While this scale powers global growth, it created a hidden financial inefficiency: Duty Drawback fragmentation.

The Problem:

• Scattered Data: With hundreds of suppliers, drawback data was siloed. Some suppliers used brokers, others filed manually, and many didn't track eligibility at all.

• Vague Classification: A significant portion of goods were classified under generic "Other-Other" HTS codes, which limits drawback eligibility under TFTEA rules.

• Trapped Capital: The finance team couldn't answer a basic question: "How much in duties could we be recovering right now?"

"We had refund opportunities everywhere, but no single way to capture them all," says Anders L., Logistics Process Manager. "We were doing everything right, but separately."

GingerControl’s brief: Unify the process. Make duty recovery as standardized and efficient as the client’s logistics network.

The Solution: A System That "Thinks" Like a Finance Team

GingerControl approached the project by mapping the global supply chain to identify where money was getting stuck. We implemented a three-step solution to save duties compliantly.

1. HTS Cleanup & Governance

TFTEA allows for "Substitution Drawback" (matching imports and exports of similar goods), but only if the HTS codes align perfectly at the 8-digit level. Generic "Other-Other" codes are a roadblock.

• The Fix: We established a strict HTS governance model, working with data engineers to recode thousands of SKUs from generic categories to specific, eligible HTS codes.

• The Result: Eligibility became clear instantly. "Once we aligned on the codes, the confusion disappeared," notes Anders.

2. Digitizing Entitlements

Often, the exporter of record is a third-party logistics provider, not the retailer. To claim drawback, the exporter must assign their rights to the importer—usually a paperwork nightmare.

• The Fix: GC deployed a digital assignment system. Exporters now receive a digital waiver pre-filled with shipment data. Once e-signed, it links directly to the claim.

• The Result: No more chasing wet-ink signatures months after the fact.

3. Centralized ACE Integration

We built a central data hub connecting directly to CBP’s Automated Commercial Environment (ACE).

• The Fix: Import and export data flows through one structured pipeline with automated validation logic (checking time windows, HTS alignment, and proof of export) before filing.

The Results: Clarity, Consistency, Confidence

Six months after implementation, the program transformed from a manual scattershot into a precise financial instrument:

• Financial Predictability: Refunds are now forecasted by quarter and incorporated into working capital models.

• Processing Speed: Claim submission time dropped by over 50% as the process moved from manual compilation to digital automation.

• Audit Readiness: Every claim is backed by a digital audit trail, ensuring compliance is "baked in" rather than bolted on.

"Drawback used to be something we reacted to; now it's something we plan for," says Anders. "It’s organized, predictable, and built to last."

The GingerControl Difference

Global retail volume means that small errors add up to massive losses. GingerControl catches those errors before they multiply. By blending legal precision with system design, we created a framework that runs quietly in the background—accurate, compliant, and completely aligned with the client’s commitment to efficiency.