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Trade IntelligenceFebruary 18, 20257 min read

Understanding Duty Drawback: A Complete Guide for Importers

Duty drawback is one of the most underutilized mechanisms in international trade. Learn how your business can recover up to 99% of customs duties paid on imported goods.

Duty drawback is a U.S. Customs and Border Protection program that allows importers to claim refunds on customs duties, taxes, and certain fees paid on imported merchandise that is subsequently exported or destroyed.

What Qualifies for Drawback?

Three primary drawback types exist under current U.S. law:

**Manufacturing Drawback** applies when imported merchandise is used in the manufacture or production of articles that are then exported. The claimant may recover up to 99% of the customs duties paid.

**Unused Merchandise Drawback** covers goods that are imported but never used in the United States and are subsequently exported or destroyed under customs supervision within three years of importation.

**Rejected Merchandise Drawback** applies to goods that were imported and found to be defective, not conforming to sample or specification, or shipped without consent of the consignee.

The Filing Window

Claims must be filed within five years of the date of importation of the merchandise on which drawback is claimed. This window is often missed by companies without a systematic tracking process.

Why Most Businesses Leave Money Behind

The complexity of tracking importation dates, matching exports to imports, and navigating CBP filing requirements creates significant administrative burden. Most businesses lack the internal expertise or systems to manage this process efficiently.

DutyClaims was built precisely to solve this problem — providing the infrastructure and expertise to identify, document, and file drawback claims with precision.

Getting Started

A drawback analysis begins with reviewing your import records from the past five years, identifying goods that were subsequently exported, and calculating the duty recovery potential. The upside is often substantial and the process, with the right partner, is straightforward.

Ready to recover what's yours?

Contact us for a no-obligation assessment of your duty recovery potential.