Duty Drawback: How to Recover Overpaid Duties

Duty drawback is a CBP program that allows importers to recover up to 99% of customs duties, taxes, and fees paid on imported goods that are subsequently exported or destroyed. Many importers don't realize they qualify-and are leaving significant money on the table.

Three Types of Drawback

• Manufacturing drawback: You import raw materials, manufacture a product in the US, and export the finished good
• Unused merchandise drawback: You import goods and export them in the same condition (no modification)
• Rejected merchandise drawback: Imported goods that don't conform to specifications and are returned/destroyed

Key Requirements

• Claims must be filed within 5 years of the date of importation
• The exported goods must be linked to the imported goods through proper documentation
• Substitution drawback (under TFTEA) allows using commercially interchangeable goods
• Applies to duties, taxes, AND fees (including Section 301/232 tariffs)

Do You Qualify?

If you import goods and then export any products-even products manufactured from different (but similar) materials-you likely qualify. With today's elevated tariff rates from Section 301 and reciprocal tariffs, the drawback recovery amounts can be substantial.