QUICK ANSWER Duty drawback is a US customs program that refunds up to 99 percent of the duties, taxes, and fees you paid on imported goods that are later exported or destroyed, including Section 301 tariffs, MPF, and HMF. You have a five-year window from import to file, and the refund comes in four main types depending on whether the goods are re-exported unused, manufactured into something else, or rejected.
Duty drawback is the closest thing to found money in importing: duty you already paid, refunded when the goods leave the country again. Most importers who qualify never claim it, because the rules look complicated. This guide breaks down who qualifies, the four types, what is refundable, and the five-year clock.
The refund written into the Tariff Act
Duty drawback is a refund, authorized under section 1313 of the Tariff Act and regulated under 19 CFR Part 190, of duties and fees paid on imported merchandise that is subsequently exported or destroyed. The logic is simple: if goods pass through the US rather than being consumed here, the government refunds most of what you paid to bring them in. It is administered by CBP, and the duty it gives back is the same duty you paid at customs clearance, applying to the importer or, in many cases, to whoever ends up exporting the goods.
How much you can recover
Up to 99 percent of the eligible duties, taxes, and fees. CBP keeps a small percentage, and you get the rest back on qualifying goods. On tariff-heavy imports, especially Chinese-origin goods carrying a Section 301 stack, that 99 percent can add up to a serious sum across a year of shipments, which is why drawback matters more now than it did before the tariffs.
What duties and fees qualify
More than importers expect. Drawback can recover the base duty, Section 301 tariffs, the Merchandise Processing Fee, the Harbor Maintenance Fee, and certain excise taxes. A few categories are excluded, notably antidumping and countervailing duties, which are generally not drawback-eligible. So a shipment that paid regular duty plus a Section 301 tariff plus MPF and HMF has several recoverable lines, not one.
The four types of duty drawback
Which type applies depends on what happens to the goods after import.
The four main types of duty drawback
| Type | Statute | When it applies |
|---|---|---|
| Unused merchandise | 19 USC 1313(j)(1) | Imported goods exported in the same condition, unused |
| Substitution unused | 19 USC 1313(j)(2) | Commercially interchangeable goods substituted and exported |
| Manufacturing | 19 USC 1313(a) and (b) | Imported goods used to make a product that is then exported |
| Rejected merchandise | 19 USC 1313(c) | Defective or non-conforming goods returned or destroyed |
Matching the exports back to the duty-paid imports is done either by direct identification, tracing the exact goods, or by substitution, matching commercially interchangeable goods classified under the same HTS code.
How the drawback process works
In outline: confirm eligibility, gather the import and export records that prove the duty was paid and the goods left, file the claim with CBP, and maintain the supporting records. Claimants can apply for accelerated payment to receive the refund before CBP finishes its full review, which shortens the wait from years to months. The paperwork burden is real, which is why drawback is usually run as an ongoing program rather than a one-off filing.
Key rules and limits
A few rules decide whether a claim holds up.
Duty drawback rules that matter
| Rule | What it means |
|---|---|
| Five-year window | You generally have 5 years from the import date to file the claim |
| 99% maximum | CBP refunds up to 99% of eligible duties and fees |
| AD/CVD excluded | Antidumping and countervailing duties are not drawback-eligible |
| USMCA limits | Drawback on goods exported to Canada or Mexico is restricted |
| Records required | You must keep the import and export documentation that proves the chain |
TAKEAWAY Drawback is worth the most exactly when it feels like the most paperwork: on high-duty, Section 301-heavy goods that you re-export. Ninety-nine percent of a stacked tariff bill, recovered across a year of shipments, usually dwarfs the cost of running the program. The five-year window means you may also be able to claim on duty you paid years ago.
How Platton helps you recover duty
Drawback rewards clean records and a repeatable process, which is what a managed import file already produces. Platton positions the recovery alongside the shipment.
Eligibility spotted at the source
Because we run your imports and see your export flows, we flag when goods you are paying duty on are drawback candidates, instead of the refund going unclaimed.
The records that make a claim hold
The import entries, HTS classification, and export proof that a drawback claim depends on come out of the same shipment file, kept consistent through customs compliance review.
Section 301 recovery prioritized
On Chinese-origin goods, the Section 301 stack is the biggest recoverable line, so we focus the drawback analysis where the refund is largest.
The claim, coordinated
We coordinate the drawback claim with your customs broker and the accelerated-payment option, so the refund arrives in months rather than sitting unfiled. The main China lane is covered in depth in our shipping from China to USA guide.
Get your duty drawback eligibility reviewed
Common Questions About Duty Drawback
What is duty drawback in simple terms?
It is a refund of most of the duties and fees you paid to import goods, given back when those goods are later exported or destroyed instead of being sold in the US. CBP refunds up to 99 percent of the eligible amount. The idea is that goods only passing through the country should not carry a permanent US duty, so the government returns what you paid.
Who is eligible for duty drawback?
Importers, manufacturers, and exporters whose goods, or commercially interchangeable substitutes, are exported or destroyed after duty was paid on import. Eligibility depends on the type of drawback and on keeping records that trace the exported goods back to the duty-paid import. Even companies that did not import the goods themselves can often claim drawback on goods they export, with the right documentation and agreements.
What duties and fees qualify for drawback?
The base import duty, Section 301 tariffs, the Merchandise Processing Fee, the Harbor Maintenance Fee, and certain excise taxes are recoverable. Antidumping and countervailing duties generally are not. On Chinese-origin goods, the Section 301 tariff is often the largest recoverable line, which is why drawback has become far more valuable since those tariffs took effect.
How far back can I file a duty drawback claim?
Generally up to five years from the date of import. That window means you can often claim drawback on duty paid on shipments from prior years, as well as current ones, as long as you have the records proving the import and the export. Filing sooner is better, because assembling documentation gets harder as time passes and staff and systems change.
How long does it take to get a drawback refund?
A full CBP review can take a long time, but claimants can request accelerated payment to receive the refund before that review completes, which typically shortens the wait to months. Setting up drawback as an ongoing program, rather than a single filing, is what makes the refunds arrive predictably instead of stalling in the queue.
Related Customs Guides
How US import customs clearance works: where the duty you can later recover is first paid.
HTS and HS codes: the classification that drawback matching depends on.
Section 321 and the de minimis exemption: the end of the duty-free parcel path.
