Recover up to 99% of customs duties paid on imported goods that are re-exported, used in manufacturing for export, or destroyed.
When you import goods into the U.S. and later export them—whether in their original condition or as part of a manufactured product—you can claim back nearly all the duties you paid at import. For e-commerce businesses that sell internationally, this means the tariffs you pay on goods destined for non-U.S. customers can be almost entirely recovered.
Manufacturing drawback covers imported components used to make exported finished goods. Unused merchandise drawback applies when you import products and re-export them without substantial modification. Rejected merchandise drawback handles defective imports returned to the supplier or destroyed domestically. Each type has different documentation requirements and timelines.
Start by matching your import entries to your export records. You will need the import entry number, HTS classification, duty amount paid, and corresponding export documentation. Most businesses work with a drawback specialist or licensed customs broker for their first filing, as the process involves precise record matching and CBP-specific forms.
Duty drawback is a refund of customs duties, taxes, and fees paid on imported goods that are subsequently exported, used in manufacturing products for export, or destroyed under CBP supervision. The program allows recovery of up to 99% of duties paid.
There are three main types: manufacturing drawback (imported materials used in exported products), unused merchandise drawback (imported goods exported in the same condition), and rejected merchandise drawback (defective or non-conforming goods returned or destroyed).
Drawback claims must be filed within five years of the date of importation. However, the export or destruction must occur within five years of import, and the claim must be filed within three years of the export or destruction.
Substitution drawback allows you to claim a refund on imported goods by exporting commercially interchangeable domestic or other imported goods. The exported goods do not need to be the same physical articles that were imported, just commercially identical.
MarginHub matches your import and export records to surface unclaimed duty drawback opportunities automatically.
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