How much can I recover with duty drawback?

Up to 99% of the eligible duties, taxes, and fees paid at import. CBP retains 1% to cover administrative costs, so the maximum refund is 99 cents on every dollar of eligible duty.

What is the time limit to file a duty drawback claim?

A drawback claim must be filed within 5 years of the date the merchandise was imported. The export or destruction that supports the claim must also occur within that 5-year window. Because the clock runs from the import date, importers can often file retroactively for exports going back up to five years.

What are the main types of duty drawback?

There are three core categories under 19 U.S.C. §1313: (1) unused merchandise drawback for imported goods exported or destroyed unused, including a substitution version; (2) manufacturing drawback for duties paid on materials used to make exported products, available by direct identification or substitution; and (3) rejected merchandise drawback for defective or non-conforming goods that are exported or destroyed.

What is unused merchandise drawback?

Unused merchandise drawback (19 U.S.C. §1313(j)(1)) lets you recover duties on imported goods that you export or destroy in essentially the same condition, without using them in the U.S. It is the simplest and most common form of drawback — typical for distributors and e-commerce sellers who re-export inventory.

What is substitution drawback and commercial interchangeability?

Substitution drawback lets you claim a refund when you export goods that are interchangeable with the imported goods, rather than the exact imported units. Following the TFTEA modernization, substitution is generally determined by matching the 8-digit HTS classification of the imported and exported (or substituted) merchandise, which greatly simplifies eligibility compared with the old "commercially interchangeable" standard.

What is manufacturing drawback?

Manufacturing drawback (19 U.S.C. §1313(a) and (b)) refunds duties paid on imported materials or components that are used to manufacture or produce a different article in the U.S. which is then exported. It can be claimed by directly identifying the imported material used, or by substituting materials classified under the same 8-digit HTS code. Manufacturing drawback usually requires a drawback ruling from CBP.

What is rejected merchandise drawback?

Rejected merchandise drawback (19 U.S.C. §1313(c)) applies to imported goods that do not conform to specifications or sample, are defective at the time of import, or were shipped without the consignee’s consent. If those goods are exported or destroyed under CBP supervision, the duties paid can be recovered.

What duties and fees are eligible for drawback?

Ordinary (most-favored-nation) duties, the Merchandise Processing Fee (MPF), the Harbor Maintenance Fee (HMF), and many federal excise taxes are eligible. Up to 99% of these eligible amounts can be refunded. Some trade-remedy tariffs are eligible and others are not — see the questions on Section 301, 232, and IEEPA below.

Are Section 301 tariffs eligible for duty drawback?

Yes. Additional Section 301 duties on goods from China are generally eligible for duty drawback. For importers exporting or destroying Chinese-origin goods, the 301 tariff is often the single largest recoverable component.

Are Section 232 steel and aluminum tariffs eligible for drawback?

No. The presidential proclamations that imposed the Section 232 tariffs on steel and aluminum specifically state that no drawback is available for those duties. They cannot be recovered through a drawback claim.

Are IEEPA or reciprocal tariffs eligible for drawback?

Generally no. The executive orders that imposed the 2025 IEEPA-based and reciprocal tariffs specify that drawback is not available for those duties. Because this area changes quickly, confirm the current CBP guidance for the specific tariff and effective date before assuming eligibility.

Who can claim duty drawback?

The importer, the exporter, or the manufacturer can be the drawback claimant, depending on the type of drawback. Drawback rights can also be assigned between parties — for example, an importer can assign rights to the exporter who actually ships the goods abroad. The claimant must hold the supporting records and proof of export or destruction.

How do I file a duty drawback claim?

Drawback claims are filed electronically in CBP’s ACE (Automated Commercial Environment) as a drawback entry. The claim links the import entries (showing duties paid) to the export or destruction evidence. Most high-volume filers work through a drawback specialist or broker and obtain a drawback ruling and a bond to enable accelerated payment.

What is accelerated payment in duty drawback?

Accelerated payment is a CBP privilege that lets approved claimants receive their refund — typically within a few weeks of filing — before CBP fully liquidates the claim, rather than waiting months or years. It requires an application and a drawback bond to secure the early payment.

What records do I need for a duty drawback claim?

You need the import documentation showing the duties paid (entry summaries / CBP Form 7501), proof of export or destruction (bills of lading, shipper’s export records, destruction certificates), and the business records that link the two. Drawback records must be retained for 3 years from the date the drawback claim is paid.

How long does it take to receive a drawback refund?

With accelerated payment privileges and a bond, refunds typically arrive within a few weeks to a couple of months of filing. Without accelerated payment, you wait for CBP to liquidate the claim, which can take a year or more.

Can I claim drawback on goods that are destroyed rather than exported?

Yes. Destruction of the merchandise under CBP supervision (or with proper notice and documentation) qualifies for drawback in the same way as exportation, for unused, manufacturing, and rejected merchandise drawback.

What is the difference between duty drawback and a Post-Summary Correction or protest?

They solve different problems. Duty drawback refunds correctly-paid duties because the goods were later exported or destroyed. A Post-Summary Correction (within 300 days) or a protest (within 180 days of liquidation) corrects an error on the entry itself — such as a wrong HTS classification or value — so you recover duties you should never have paid. An importer can use both, for different shipments.

What law and regulations govern duty drawback?

Duty drawback is authorized by 19 U.S.C. §1313 and implemented in CBP regulations at 19 CFR Part 190. The Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), effective for claims from February 24, 2018, modernized the program — moving substitution to an 8-digit HTS standard and requiring fully electronic filing in ACE.

Pillar guide

Duty drawback

Q: What is duty drawback?

Duty drawback is a refund of customs duties, taxes, and certain fees that were paid on imported goods when those goods (or goods made from them) are later exported or destroyed. It is authorized by 19 U.S.C. §1313 and administered by U.S. Customs and Border Protection (CBP) under 19 CFR Part 190. Importers can recover up to 99% of the eligible amounts paid.

Duty drawback is a refund of customs duties paid on imported goods that are later exported or destroyed. Under 19 U.S.C. §1313, importers can recover up to 99% of paid duties, taxes, and fees — for exports going back as far as five years.

What is duty drawback?

Duty drawback is one of the few ways an importer can get customs money back. When you import goods, you pay duties, the Merchandise Processing Fee and Harbor Maintenance Fee, and any trade-remedy tariffs. If those goods — or products made from them — are later exported or destroyed, you can reclaim up to 99% of the eligible amount under 19 U.S.C. §1313. Drawback is one of several duty-refund routes — it's the one for goods that leave the country.

The five types of drawback

Which type applies depends on what happens to the imported goods. The first step in any drawback program is mapping your import and export flows to the right statutory provision.

§1313(j)(1)Unused merchandise drawback

Imported goods that are exported or destroyed in the same condition — unused — within the time limit. The most common and simplest type.

§1313(j)(2)Substitution unused merchandise

Export of commercially interchangeable goods substituted for the imported ones. Under TFTEA, substitution is matched at the 8-digit HTS level.

§1313(a)Manufacturing drawback (direct ID)

Duties on imported materials that are used to manufacture a product which is then exported, where the specific imported material is traced.

§1313(b)Manufacturing drawback (substitution)

Same as direct-identification manufacturing drawback, but using substituted materials classified under the same 8-digit HTS code.

§1313(c)Rejected merchandise drawback

Goods that are defective, do not conform to specification, or were shipped without consent, then exported or destroyed.

The 5-year window

A claim must be filed within 5 years of the import date, and the qualifying export or destruction must fall in that window. Because the clock runs from import, most companies can file retroactively for the last five years of exports — often the largest single refund in a first-year drawback program.

What you can — and can’t — recover

Ordinary duties, MPF, HMF, and many excise taxes are eligible. Section 301 duties on Chinese goods are generally eligible, and are often the biggest recoverable line. However, Section 232 steel and aluminum tariffs are not drawback-eligible, and the 2025 IEEPA / reciprocal tariffs generally are not either. Confirm current CBP guidance before relying on eligibility.

How to claim

Claims are filed electronically in CBP’s ACE as a drawback entry that links duty-paid import entries to proof of export or destruction. With a drawback ruling, a bond, and accelerated payment privileges, refunds can arrive within weeks instead of after liquidation. Records must be kept for 3 years from the date the claim is paid.

HTS Code Lookup →

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Who holds the duties, and the rights to claim them back.

Duty drawback frequently asked questions

Everything importers ask about recovering duties on exported and destroyed goods, answered.

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