Who is eligible to claim duty drawback?
The exporter or destroyer of the goods is the default claimant, and it can waive that right to the importer, the manufacturer or a company in between.
FAQ
Who can claim duty drawback
Your entries decide. These answers cover who can claim, the four checks that matter, and the cases buyers ask about most: supply chains, company size, Canada and Mexico, e-commerce and returns.
- Filed by a licensed broker†
- Published fees, charged after CBP pays
- Sealed on AMD SEV-SNP
11 questions
Read the full answer
How do I know if my company is eligible for duty drawback?
Four checks give a first answer, and your entries give the real one.
My company does not do both import and export, but my supply chain does. Can I still receive duty drawback?
Often, yes. The exporter can claim on someone else's import, or waive the right to the importer, if the records connect the two.
Is duty drawback only for large companies?
No. Drawback has no size test; any claimant that paid duty on goods later exported or destroyed may qualify.
The detail
It's worth filing when the duty on what you export or destroy outweighs the work of gathering records plus the fee.
The fee is charged only after CBP pays, and the minimum is $750 per filed claim, never more than 25% of what that claim recovers.
- 19 U.S.C. 1313[1]
- NexQloud Drawback pricing[2]
Also asked
- Is duty drawback worth it for a small business?
- When is it worthwhile to file for duty drawback?
Can I claim drawback on goods exported to Canada or Mexico?
Yes. Goods exported to Canada or Mexico in the same condition as imported get full drawback, up to 99%, even if they were repacked, relabeled or tested.
The detail
For other goods, such as products made from imported inputs, USMCA caps drawback at the lesser of the U.S. duty paid and the duty paid on entry into Canada or Mexico.
Substitution is limited for these exports: an unused-merchandise claim on goods sent to Canada or Mexico generally has to rest on the goods you imported, not on substitutes.
Your broker checks each line, and a Canadian customs manifest can serve as proof of export.
Is there duty drawback for service exports?
No. Drawback applies to merchandise that is exported or destroyed, not to services.
The detail
If your service work sends imported parts abroad, such as replacement parts shipped to a customer overseas, those parts may qualify like any other export.
- 19 U.S.C. 1313[1]
Can I claim drawback on goods I destroy instead of exporting?
Yes. Destroying goods under CBP supervision can take the place of export for unused, manufacturing and rejected merchandise claims.
The detail
File notice at least 7 working days before the destruction; CBP has 4 working days to say whether it will witness it.
If CBP doesn't attend, you need third-party evidence. The value of anything recovered from the destruction is deducted.
Does it matter if the goods were used, repaired or repacked before export?
It depends on the claim type.
Unused merchandise drawback requires that the goods weren't used in the U.S., but testing, repacking, relabeling, repairing, cutting and similar operations don't count as use.
The detail
Goods turned into a new product fall under manufacturing drawback, which needs a manufacturing ruling.
What is duty drawback for ecommerce in 2026?
In 2026, more e-commerce imports pay duty, so more of the goods that leave again, such as cross-border orders and returns, can carry drawback.[7]
Do returns qualify for duty drawback?
They can, whatever the reason for the return.
Retail goods returned to you can qualify as rejected merchandise once you export or destroy them, and returned goods that were never used can also qualify as unused merchandise.
The detail
You can designate an import made within 1 year before the export or destruction, with the same 8-digit HTS subheading and product identifier, such as a SKU.
File notice at least 5 working days before the goods go back to CBP custody for export, or 7 working days before a destruction.
Also asked
- Can I claim drawback on customer returns?
- Does duty drawback apply to international returns?
What is Section 321, and does it still apply?
Section 321 is the de minimis rule that let articles valued at $800 or less enter without duty, and for most shipments it no longer does.
The detail
The exemption has been suspended since August 29, 2025, and a June 24, 2026 rule made the suspension indefinite, for goods from any country, including China, in every mode except the international postal network.
By statute, the exemption ends on July 1, 2027.
Low-value imports now generally pay duty, so their exports and returns may be worth a drawback review.
Also asked
- What is the de minimis threshold?
- Does Section 321 still apply to Chinese goods?
Editorial
Sources and changes
Written by the NexQloud Drawback team from the primary sources linked on this page.
Change log
- First published.
Not legal advice. NexQloud Drawback is not a government agency.
NexQloud Drawback is software used by licensed customs brokers.
Get started
Read less. Run the demo.
Run the demo on a sample file. About three minutes.
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01
Upload one quarter.
Entry summaries, invoices and export records.
WhoYou
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02
AI drafts your claim.
It ties each export to its import, to the cent.
WhoThe agent
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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.
Ready now? Start a claimIEEPA refunds
Got your IEEPA refund? Drawback is the one that repeats.
We check every entry for CAPE first, the order CBP recommends.[9] Drawback can recur every year.
Which tariffs qualify?
For partners
Be the firm that finds your clients a second refund.
Brokers earn the drawback fee. CPA firms bill their own work. Refund firms keep their CAPE clients. Design partners help shape it before launch.
Apply to partner
No fee to apply. We reply within 2 business days.
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."[13]
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.