Duty drawback for apparel and footwear

Exports to Canada or Mexico. Other exports there are capped at the lesser of the U.S. duty and the duty paid there.^{⁠[1]⁠[15]} Repacking or relabeling, such as adding price tickets, doesn't count as use or change the goods' condition.^{⁠[1]⁠[15]} A notice of intent before each export, or a waiver. Past exports without either need a one-time retroactive approval.^⁠[18]

Exports everywhere else. Substitution claims carry a lesser-of cap.^⁠[1] The same notices, waiver or one-time approval.^⁠[18]

Returns you export or destroy. Match each return to an import from within 1 year before, with the same 8-digit HTS number and SKU.^{⁠[1]⁠[16]} Returns exported to Canada or Mexico can't use a substitute import, and the lesser-of cap applies.^⁠[15] Notice at least 5 working days before export, and 7 before destruction.^{⁠[16]⁠[17]}

Damaged or unsold stock. Notice at least 7 working days ahead.^⁠[17] If CBP doesn't attend, you need third-party evidence.

All four: file within five years of import.^⁠[1] Cut and sew in the U.S. from imported fabric? That is manufacturing drawback, which needs a ruling.^⁠[19]

$1,000,000 × 20% × 32% = $64,000; × 99% = $63,360.

Fees follow the published lookback schedule: 20% of the first $500,000 recovered in Sealed. Standard is 2 points less.^⁠[20] If the sweaters also paid Section 301 or other 2026 duties, those would count the same way. MPF and harbor maintenance tax, which drawback can also return, are left out to keep the arithmetic plain. Not a quote or a client result.

A bill of lading, air waybill, freight waybill, Canadian customs manifest or cargo manifest, or official postal records for mail.

Copies and records kept in the normal course of business are accepted. They must show the date and fact of export and who exported.^{⁠[1]⁠[17]} If you filed export information (EEI), add it too.

Your factory list may already be public. In 2023, 52% of the 250 largest fashion brands published their tier-1 suppliers.^⁠[22] Shipment manifests are public too, but U.S. manifest records carry no values.^⁠[23]

Sealed. No outside AI provider ever receives your documents, and nothing trains on them. No one sees them without your consent, and a receipt proves it.

Standard. An outside AI provider may process your documents, only on terms that bar training. Nothing trains on them. Only named NexQloud staff can open them, to fix an exception or answer a support request, and every access is logged.

A trade secret stays protected only while you take "reasonable measures" to keep it secret.^⁠[24] Sealed gives you a receipt you can keep, showing the run was sealed.

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