How do importers get a customs duty refund?

There are five main routes, depending on why you overpaid and when: a Post-Summary Correction (before liquidation), a protest (after liquidation), duty drawback (for exported or destroyed goods), a post-importation free-trade-agreement claim under §1520(d), and reconciliation for flagged entries. Each has its own deadline.

What is the difference between a duty refund and duty drawback?

Duty drawback refunds correctly-paid duty because the goods were later exported or destroyed. Other duty refunds — via Post-Summary Correction or protest — recover duty you should never have paid because of an error on the entry, such as a wrong HTS code or value. Drawback is one type of duty refund, not the only one.

What is a Post-Summary Correction (PSC)?

A PSC is an electronic correction to an entry summary, filed before the entry liquidates and within 300 days of the entry date. It’s the usual way to fix a classification or valuation error and recover an overpayment while the entry is still open.

What is a customs protest?

A protest is a formal challenge to a CBP decision — including the classification or the duties assessed — filed within 180 days of liquidation. It’s the route to a refund once an entry has already liquidated.

How far back can I recover overpaid duty?

It depends on the route: a PSC reaches entries within 300 days and before liquidation; a protest within 180 days of liquidation; duty drawback up to five years from import; and a post-importation FTA claim within one year of import. Because some windows are short, overpayments are best caught quickly.

Are Section 301 duties refundable?

Yes, in the right circumstances. If Section 301 duty was overpaid through misclassification, it can be recovered via PSC or protest; and Section 301 duty on goods later exported is generally drawback-eligible. (Section 232 duties are generally not drawback-eligible.)

Who can file for a duty refund?

The importer of record files corrections, protests, and FTA claims; drawback can be claimed by the importer, exporter, or manufacturer, with rights that can be assigned. In all cases the claimant must hold the supporting records.

How do I find duty I’ve overpaid?

Re-examine your entries against current classifications and CBP precedent. Software can audit years of entries automatically, flag misclassifications and missed FTA claims, and draft the PSC, protest, or drawback claim — which is how most recoverable duty is found before its deadline expires.

Guide

Duty refunds

Most importers are owed money they never claim. Here are the five ways to recover overpaid customs duty — and the deadline on each, because the windows close fast.

Five routes to a refund

Which route applies depends on why you overpaid and when you catch it. The deadlines run from the entry or liquidation date, so unclaimed refunds expire.

Post-Summary Correction (PSC) →Within 300 days of entry, before liquidation

Correct a classification or value error on the entry and recover the overpayment.

ProtestWithin 180 days of liquidation

Formally challenge CBP’s decision or the duties assessed at liquidation.

Duty drawback →Within 5 years of import

Recover up to 99% of duty on goods later exported or destroyed.

Post-importation FTA claim (§1520(d)) →Within 1 year of import

Claim USMCA or another FTA preference you were eligible for but didn’t take at entry.

ReconciliationPer your reconciliation flag

Finalize flagged estimated data (e.g., value, FTA) and true up duty after entry.

Refund vs. drawback

Duty drawback refunds correctly-paid duty because goods were exported or destroyed. The others recover duty you shouldn't have paid at all — a misclassification fixed by a PSC or protest, or a missed USMCA claim. Either way, finding it starts with re-checking the HTS classification on your entries.

Duty refund FAQ

Find the refunds before they expire

Tariffloop audits five years of your entries, flags every recoverable dollar, and drafts the PSC, protest, or drawback claim.

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