Duty drawback is one of the most underused tariff-saving tools available to US importers. If you import goods and then re-export them — either in their original form or as part of a finished product — you can recover up to 99% of the duties you paid. With tariff rates at 25-70%+ in 2026, drawback can mean tens of thousands of dollars back in your pocket.
Duty drawback is a refund of customs duties paid on imported goods that are subsequently exported. It's authorized under Title 19 of the US Code and administered by US Customs and Border Protection (CBP). The program has existed since 1789 — it's one of the oldest trade provisions in US law.
The principle is simple: the US charges tariffs to protect domestic industry. If the goods leave the US (via export), the protection rationale doesn't apply, so the duties should be refunded.
You import materials, manufacture them into a finished product in the US, and export the finished product. You can claim drawback on the duties paid on the imported materials.
Example: You import Chinese steel (78% tariff), fabricate it into machine parts in Ohio, and export the parts to Canada. You recover up to 99% of the 78% duty paid on the steel.
You import materials AND purchase the same type of materials domestically. You use the domestic materials in your exported product. You can still claim drawback on the imported materials, even though you used domestic materials in the export.
Example: You import aluminum from China (50% tariff) and also buy US aluminum. You use US aluminum to make parts exported to Mexico. You claim drawback on the Chinese aluminum duties even though the exported parts used domestic aluminum.
You import goods, don't use them, and export them in the same condition within 5 years. You recover up to 99% of duties.
Example: You import 10,000 units from China, sell 7,000 in the US, and export the remaining 3,000 to Europe. You claim drawback on the 3,000 exported units.
💰 Recovery Rate: Up to 99%
The maximum drawback is 99% of duties paid. The 1% retention is CBP's processing fee. On a $100,000 shipment from China with 45% tariffs ($45,000 in duties), you could recover $44,550 if the goods are subsequently exported.
Manufacturers who export: If you import raw materials or components, manufacture in the US, and sell some finished products overseas, you almost certainly qualify.
Re-exporters: Companies that import goods and then ship some of them to other countries.
Amazon sellers with international orders: If you fulfill international orders from US inventory that was imported, you may qualify on those specific exports.
Companies with excess inventory: If you can sell excess imported inventory to international buyers instead of liquidating domestically, you can recover the duties.
Step 1: Determine if you qualify. You need to import goods AND export goods (or goods made from imported materials). The import and export must be linkable.
Step 2: Keep meticulous records. You need import entry documents, proof of export, manufacturing records (if applicable), and evidence linking imports to exports.
Step 3: File a drawback claim with CBP within 5 years of importation. Claims are filed electronically through ACE (Automated Commercial Environment).
Step 4: CBP reviews and processes the claim. Processing time is typically 2-6 months.
💡 Pro Tip
Duty drawback is complex enough that most companies use a specialized drawback broker or consultant. Their fee is typically 10-20% of the recovered amount — still a massive net positive. On a $45,000 recovery, even a 20% fee leaves you with $36,000 you wouldn't have otherwise.
Drawback has become dramatically more valuable since tariff rates increased. When tariffs were 2-5%, drawback wasn't worth the paperwork for most companies. At 25-78%, the math changes completely.
Consider: a company importing $1 million in Chinese goods (45% tariff = $450,000 in duties) that exports 30% of production could recover up to $133,650 per year. That's a significant bottom-line impact that many companies are leaving on the table.
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Use Free Calculator →Up to 99% of the import duties paid on goods that are subsequently exported, either in their original form or as part of a manufactured product.
You must file within 5 years of the date of importation. The goods must be exported within 5 years of import as well.
Not legally, but it is highly recommended. Drawback claims are complex and a specialized broker or consultant can maximize your recovery while ensuring compliance.
Yes. Drawback applies to all customs duties including MFN, Section 301, Section 122, and Section 232 tariffs. This makes it especially valuable in the current high-tariff environment.