SellerSays

Duty drawback: reclaiming US import duties on re-exports

Duty drawback is a CBP refund of 99% of the duties, taxes, and fees you paid on imported goods that you then re-export or destroy — a real refund of the tariffs this site helps you calculate. Three types exist (manufacturing, unused-merchandise, rejected-merchandise), and under TFTEA there's a uniform 5-year window from the import date to file. The catch for small sellers: since 2019 all claims must be filed electronically in CBP's ACE system, in practice through a licensed drawback broker, and you must document the import entry, prove export/destruction, and certify non-reimbursement. The refund is generous; the process is built for volume.

Is it realistic for a small cross-border seller?

Honestly: only above a certain scale. There is no official minimum-value threshold, but the process — electronic ACE filing, broker fees, and per-claim documentation (import entries, export proof, non-use and non-reimbursement certifications) — carries fixed cost and effort that a handful of returned or re-exported parcels won't justify. Where it starts to pay: consistent re-exports (you import to the US, then ship a meaningful share abroad or to Canada/Mexico), or destroyed/rejected inventory in quantity. That's a SellerSays judgment based on the official process complexity, not an official rule.

The strategic angle for the current US tariff environment: with de minimis gone and Section 301 forced-labor duties (10–12.5% by origin) now on most imports, the duty you pay to bring inventory into the US is larger than it used to be — which raises the value of drawback on anything you later send back out. If a real share of your US-imported stock gets re-exported, it's worth pricing a drawback broker against the duties at stake.

Common questions

Can I file drawback myself?
Technically yes, but claims must be filed electronically in ACE and the rules (19 CFR Part 190) are complex — nearly all filers use a licensed drawback broker or service. Get a quote and compare it against the 99% you'd recover.
How long do I have?
A uniform 5-year window from the date of import under TFTEA. Keep import entry records and export/destruction proof for anything you might claim.

Official sources behind these numbers

  • Drawback is a CBP refund of certain duties, taxes, and fees paid on imported merchandise that is subsequently exported or destroyed. Three main categories: manufacturing drawback, unused merchandise drawback, and rejected merchandise drawback. CBP · verified 2026-07-24
  • Drawback refunds 99% of the eligible duties, taxes, and fees paid on the imported merchandise (i.e., CBP retains 1%). CBP · verified 2026-07-24
  • Under TFTEA (19 CFR Part 190), there is a uniform 5-year filing window: the drawback claim must be filed within 5 years of the date of importation of the designated imported merchandise, and the export/destruction must also occur within that 5-year period. CBP · verified 2026-07-24
  • As of February 24, 2019, all drawback claims must be filed electronically in ACE pursuant to TFTEA (19 CFR 190). Claims are typically constructed and transmitted by a licensed Customs broker or drawback service provider. CBP · verified 2026-07-24 · effective 2019-02-24
  • To claim drawback the filer must document the import entry (duty paid), prove exportation or destruction under CBP supervision, and (for unused/rejected merchandise) certify non-substitution/non-use; supporting proof (e.g., proof of export/destruction) is uploaded to CBP's Digital Image System (DIS) alongside the ACE claim. CBP · verified 2026-07-24

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