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.