Duty drawback

Duty drawback is a refund of the duties, certain taxes and fees paid on imported goods when those goods, or products made from them, are exported or destroyed under the supervision of U.S. Customs and Border Protection (CBP). The refund is generally 99% of the eligible amount, and the claim must be filed within 5 years of the date the goods were imported.

The law is 19 U.S.C. 1313, and CBP's rules are in 19 CFR Part 190.

The main types of drawback

Unused merchandise drawback, direct identification. You import goods, don't use them in the United States, and export or destroy them within 5 years of import (19 U.S.C. 1313(j)(1)). Some handling doesn't count as use, including "testing, cleaning, repacking, inspecting, sorting," relabeling and unpacking (19 U.S.C. 1313(j)(3)).

Unused merchandise drawback, substitution. You export or destroy other goods that are "classifiable under the same 8-digit HTS subheading number" as the imported goods, meaning the same eight-digit line of the Harmonized Tariff Schedule (HTS), within 5 years of the import (19 U.S.C. 1313(j)(2)). CBP adds that if the 8-digit subheading is described as "other," the 10-digit numbers must match and must not be "other" either. CBP also says exports to Canada or Mexico aren't allowed under this type.

Manufacturing drawback. You use imported goods to make articles in the United States, then export or destroy the articles unused (19 U.S.C. 1313(a)). Under substitution, you can use goods in the same 8-digit subheading instead, within 5 years of the import (19 U.S.C. 1313(b)). Each manufacturer must operate under a general manufacturing drawback ruling or apply for a specific one (19 CFR 190.7 and 190.8).

Rejected merchandise drawback. This covers goods that are "not conforming to sample or specifications, shipped without the consent of the consignee, or determined to be defective as of the time of importation." It also covers goods "ultimately sold at retail" that are "for any reason returned to and accepted by the importer, or the person who received the merchandise from the importer." The goods must be exported or destroyed within 5 years of import (19 U.S.C. 1313(c)). Online sellers who export returned stock may find this type relevant.

How much you get back

For unused and manufacturing drawback, the refund is "99 percent of the duties, taxes, and fees paid" on the imported goods (19 U.S.C. 1313(l)). With substitution, it is 99% of the lesser of two amounts: what was paid on the import, or what the exported or destroyed article (for unused merchandise) or the substituted merchandise (for manufacturing) would owe if it were imported (19 U.S.C. 1313(l)(2)). When goods are destroyed and materials are recovered from them, the value of the recovered materials that accrues to you is deducted (19 U.S.C. 1313(x)).

CBP's rules list what can be refunded (19 CFR 190.3):

• Ordinary customs duties.
• Marking duties.
• Internal revenue taxes that attach on importation.
• Merchandise processing fees (MPF).
• Harbor maintenance taxes (the harbor maintenance fee, HMF).

Drawback is not allowed on antidumping and countervailing duties (19 CFR 190.3(b)).

2026 tariffs: check each action

Additional tariffs don't all follow the same rule. The proclamation or notice that imposes each one says whether drawback is available. Three recent Section 232 examples show the range:

• Semiconductors (Proclamation 11002, published Jan 20, 2026): "No drawback shall be available with respect to the duties imposed pursuant to this proclamation."
• Pharmaceuticals (Proclamation 11020, published Apr 9, 2026): "Drawback shall be available with respect to the duties imposed pursuant to this proclamation."
• Medium- and heavy-duty vehicle parts (Proclamation 10984, published Oct 22, 2025): only manufacturing drawback under 19 U.S.C. 1313(a) and (b), "and no other drawback," is available on the duties on those parts, and on the automobile parts duties under Proclamation 10908.

Later proclamations can amend these terms. Before you count on a refund of an additional tariff, check the current text for that program. Our tariff program pages link to the source documents.

Deadlines and steps

1. Give notice before you export or destroy unused goods. For unused merchandise drawback, file CBP Form 7553, the Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback, at least 5 working days before the planned export (19 CFR 190.35). For a destruction, the notice is due at least 7 working days before (19 CFR 190.71). CBP has 2 working days to say whether it will examine goods to be exported, and 4 working days to say whether it will witness a destruction.
2. Keep proof of export. It must establish "the date and fact of exportation and the identity of the exporter," and can come from normal business records or a government electronic export system (19 U.S.C. 1313(i)).
3. File the claim electronically. CBP says all drawback claims must be filed electronically in the Automated Commercial Environment (ACE), and paper claims haven't been accepted since February 2019. You can hire a licensed customs broker, use a service bureau, or set up your own connection to CBP.
4. File within 5 years of import. A drawback entry must be filed "not later than 5 years after the date on which merchandise on which drawback is claimed was imported." Claims not completed in that period "shall be considered abandoned" (19 U.S.C. 1313(r)).

The claim itself must tie each export to specific import entry lines, with the 10-digit HTS number, duties paid, value and quantity for each (19 CFR 190.51). Good records of which imports became which exports are what make drawback possible.

Getting paid sooner

Normally CBP pays when it liquidates the drawback claim. Approved claimants can get accelerated payment, meaning estimated drawback paid before liquidation (19 CFR 190.92). That requires a written application and a bond. CBP's bond guidance sets this continuous bond at 100% of the estimated accelerated drawback to be claimed during the bond term, with a minimum of $50,000.

Is drawback worth it?

It depends on how much duty you pay on goods that leave the country, and on whether your records can link exports back to import entries. Drawback claims have strict technical rules. A licensed customs broker who files drawback can look at your import and export records and tell you what a claim would involve. Estimate the duties you're paying now with our duty calculator.

Questions

How much of my import duty can I get back through drawback?

Generally 99% of the duties, taxes and fees paid on the imported goods. When substitution is used, the refund is 99% of the lesser of the amount paid on the import or the amount the exported or destroyed article (for unused merchandise) or the substituted merchandise (for manufacturing) would owe if imported. Antidumping and countervailing duties can't be refunded through drawback.

How long do I have to file a drawback claim?

Five years. Under 19 U.S.C. 1313(r), a drawback entry must be filed no later than 5 years after the date the merchandise was imported, and claims not completed within that period are considered abandoned. The goods themselves must also be exported or destroyed within the time each type of drawback allows.

Can I get drawback on Section 232 tariffs?

It depends on the program. Each proclamation states the rule. The 2026 semiconductor proclamation says no drawback is available, the 2026 pharmaceuticals proclamation says drawback is available, and the 2025 proclamation on medium- and heavy-duty vehicle parts allows only manufacturing drawback on those parts. Check the current text of the program that applies to your goods.

Can I claim drawback on returned retail goods that I export?

Possibly. Rejected merchandise drawback under 19 U.S.C. 1313(c) covers imported goods ultimately sold at retail that are returned to and accepted by the importer, or by the person who received them from the importer. The goods must be exported or destroyed under CBP supervision within 5 years of import, and the other claim rules apply.