Basics

What is duty drawback?

Duty drawback is a refund of up to 99% of the duties, taxes and fees paid on imported goods that are later exported or destroyed.⁠[1]

  • Filed by a licensed broker⁠†
  • Published fees, charged after CBP pays
  • Sealed on AMD SEV-SNP

In simple words, the U.S. can give back most of the duty on goods that leave again.

U.S. Customs and Border Protection (CBP) runs the program under 19 U.S.C. 1313. A few rules shape every claim:

  • Five years. A claim must be filed within five years of the import.
  • More than duty. Merchandise processing fees and harbor maintenance tax can come back too.
  • Electronic filing. Claims are filed in ACE, CBP's trade system, as entry type 47, through a CBP-authorized system. Many claimants file through a licensed customs broker.

Few companies claim it. 9,017 companies filed drawback from 2007 to 2016, and 87,016 companies both imported and exported in 2024.

The periods differ, so the two numbers aren't a ratio.

CBP paid about $1 billion a year in drawback as of December 2019, the latest official figure.

The main types are unused merchandise, manufacturing and rejected merchandise.

  • 19 U.S.C. 1313, 1313(r)⁠[1]
  • 19 CFR 190.3, 190.51⁠[2]⁠[3]
  • CBP regulatory impact analysis, USCBP-2018-0029⁠[4]
  • Census, 2024 exporter profile⁠[5]
  • GAO-20-182, Dec 2019⁠[6]
Also asked
  • What does duty drawback mean?
  • What is duty drawback in simple words?
  • What is a drawback in customs terms?
  • What is CBP drawback?
  • What exactly is drawback?

Written by the NexQloud Drawback team from the primary sources linked on this page.

Not legal advice. NexQloud Drawback is not a government agency.

NexQloud Drawback is software used by licensed customs brokers.

Related

Duty drawback basics

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Read less. Run the demo.

Run the demo on a sample file. About three minutes.

  1. 01

    Upload one quarter.

    Entry summaries, invoices and export records.

    WhoYou

  2. 02

    AI drafts your claim.

    It ties each export to its import, to the cent.

    WhoThe agent

  3. 03

    Your broker files. CBP pays you.

    The refund goes directly to your bank account.

    WhoA licensed broker

Your email and name open the demo. We never ask for your ACE login or bank details.

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IEEPA refunds

Got your IEEPA refund? Drawback is the one that repeats.

We check every entry for CAPE first, the order CBP recommends.⁠[7] Drawback can recur every year.

Which tariffs qualify?

Section 301 duties, the Section 122 surcharge and the Section 338 duties on Canada all qualify.⁠[8]⁠[9]⁠[10]

How CAPE and drawback fit together

For partners

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Brokers earn the drawback fee. CPA firms bill their own work. Refund firms keep their CAPE clients. Design partners help shape it before launch.

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Questions

Top questions

All questions
What is duty drawback?

A refund of up to 99% of the duties, taxes and fees you paid on imports that you later export or destroy, or that went into products you export.⁠[1] It works in any industry.

When can I start?

We open to importers in waves, in the order of the waitlist. The demo shows the whole product with sample data today, and partners can apply now.

What will you need from me?

One quarter of records to start: entry summaries, invoices, packing lists, shipping documents, and export, return or destruction records.

How long until CBP pays?

With accelerated payment, CBP can pay before the claim is final. Its only published timing, from December 2018: processing "will generally take place within 3 weeks of the claim resubmission date."⁠[11]

Can I use my own customs broker?

Yes. Invite your own broker, or use one we name before you sign. Your POA stays with your broker, and your broker sets its own fee.

What if CBP pays less than claimed?

The fee follows what CBP actually pays. If CBP later recovers part of a payment, the fee is reduced to match.

Do you file CAPE claims?

No. We check every entry for CAPE first and flag what belongs there. You or your broker files CAPE. Refund firms work through one of you.

Demo

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Watch the agent turn a sample file into a claim folder. About 3 minutes.

We'll email you the link and add you to the waitlist. Unsubscribe anytime. We never ask for your ACE login or bank details.