How do I apply for duty drawback?
You file a drawback claim electronically in ACE, as entry type 47, through a CBP-authorized system, usually through a licensed customs broker.[1]
FAQ
How a drawback claim gets filed
A drawback claim moves from your records, to a claim package, to your broker's review, to CBP. These answers explain each step and who does it.
- Filed by a licensed broker†
- Published fees, charged after CBP pays
- Sealed on AMD SEV-SNP
13 questions
Read the full answer
What happens after I upload my records?
The agent checks what's there, tells you what's missing and shows a first result; then your broker takes over.
What are the key rules and limitations?
Five rules shape every claim. File within five years of import.
Drawback pays up to 99%, with lesser-of caps on substitution and on exports to Canada or Mexico, except goods exported in the same condition.
A claim must carry the data CBP requires and go through a CBP-authorized system.
Unused exports need a notice of intent or a waiver, and manufacturing needs a ruling. Keep records for three years after the claim liquidates.
- 19 U.S.C. 1313[2]
- 19 CFR 190.15, 190.51[3][1]
- 19 CFR Part 190, Subparts B and C[4][5]
- 19 CFR 182.45(b)[6]
Also asked
- What are the duty drawback filing provisions?
How do you set up a duty drawback program?
A drawback program means claiming on a regular cycle, with the CBP approvals that make repeat claims practical.
The detail
They are a waiver of prior notice, so each export doesn't need its own notice; accelerated payment, backed by a bond; and, for manufacturers, a manufacturing ruling.
CBP also runs a voluntary drawback compliance program. CBP has 90 days to act on a waiver or an accelerated payment application.
Also asked
- What is a duty drawback program?
Do I need to request permission from the government to claim drawback?
Not for each claim, but some claims need approvals first.
Manufacturing claims need a ruling; you may file before the ruling arrives, but payment waits for it.
The detail
Unused merchandise exports need a notice of intent at least 5 working days before export, unless you hold a waiver; until a waiver is granted, each export still needs its own notice.
Accelerated payment needs an approved application and a bond.
Also asked
- What if my applications are pending with CBP? May I file drawback claims pending those approvals?
Is there an option to file for drawback for one specific shipment (or destruction)?
Yes. A claim can cover a single export or a single destruction.
The detail
For a destruction, file notice at least 7 working days ahead; CBP has 4 working days to say whether it will witness.
The minimum fee is $750 per filed claim, never more than 25% of what that claim recovers.
- 19 CFR 190.71[11]
- NexQloud Drawback pricing[12]
What are common duty drawback mistakes?
The most common mistakes are procedural: a missed notice, a claim filed in the wrong order, or a number that doesn't tie out.
How do you maximize duty drawback refunds?
By claiming everything the rules allow, and nothing they don't.
The detail
That means every eligible duty line, including the share of merchandise processing fees and harbor maintenance tax; substitution where your records support it; an accounting method your records can back up; a waiver of prior notice, so exports don't need one-by-one notices; and CAPE first for IEEPA entries.
Your broker decides what's claimed.
What happens if my entries are flagged for review?
Your broker answers CBP, with the evidence ready. CBP can ask for information, examine goods after a notice of intent, or verify a claim.
The detail
Each line in the claim package names its source document, page and field, so the answers come from the record.
If CBP reduces a claim at liquidation, your broker can protest, and the fee drops to match what CBP pays.
- 19 CFR 190.35, 190.61, 190.84[5][9][14]
- NexQloud Drawback pricing
Also asked
- What if CBP reduces or denies a drawback claim?
- Will CBP audit my drawback claim?
Should we just file as quickly as possible?
No. File complete, and in the right order.
Settle the CAPE question first on any entry with IEEPA duty, because CAPE excludes entries already on a drawback claim.
The detail
Make sure notices, rulings and export proof are in place, and that no line is claimed above 99%.
The outer limit is five years from each import; Q4 2021 imports pass it between October and December 2026.
Who reviews the claim before it is filed?
A licensed customs broker, ours or yours, reviews every line and files.
The detail
The agent flags anything uncertain with a reason.
In Sealed mode, exceptions go only to you or your broker; in Standard mode, named NexQloud staff may help review exceptions, with every access logged.
Each approval is logged with the reviewer and the time, which supports your broker's supervision record.
- 19 CFR 111.28[16]
Also asked
- What happens when the agent isn't sure about a line?
How accurate is the agent?
We make no accuracy claim until we publish the evaluation report, with its method, test set and date.
What is in the claim package?
A claim summary, a line-level CSV you can re-foot in Excel, and the evidence for every line: the import entry and line, the export record, and the source document, page and field.
The detail
In Sealed mode, a signed receipt comes with it. See the samples built from the demonstration file (synthetic data).
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.[15] 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.[2] 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."[20]
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.