Triplicate

US duty drawback: get back 99% of import duties when you export

Duty drawback refunds up to 99 percent of the customs duties, taxes and fees paid on goods imported into the United States when those goods, or articles made from them, are later exported or destroyed under CBP supervision. It matters for US importers that re-export, for manufacturers using imported inputs, and for foreign suppliers whose US buyers ship goods onward.

Checked against official sources: 2026-10

At a glance

RefundUp to 99 percent of customs duties, taxes and fees paid on the imported goods
Law19 U.S.C. 1313, modernised by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA)
Manufacturing1313(a) direct identification and 1313(b) substitution for imported inputs used to make exported articles
Unused merchandise1313(j)(1) for goods exported or destroyed unused; 1313(j)(2) allows substitution
Rejected merchandise1313(c) for defective or nonconforming goods exported or destroyed within three years of import
Substitution standardThe substitute must be classifiable under the same 8-digit HTS subheading
Time limitClaims generally within five years from the date of importation
FilingElectronically in CBP's Automated Commercial Environment (ACE); accelerated payment needs a bond and prior approval

The main types of drawback

Deadlines, filing and records

Claims are generally filed within five years from the date the goods were imported, electronically in ACE. For most unused merchandise claims, CBP must be notified at least five working days before the export. Accelerated payment, where CBP pays before liquidating the claim, requires a bond and prior approval. Records must be kept for the claim period and for three years after payment, so the importer needs import entries, export proof such as bills of lading and EEI filings, and, for manufacturing claims, production records linking the inputs to the exported goods.

Exports to Canada and Mexico, and special tariffs

For goods exported to Canada or Mexico, drawback is limited to the lesser of the duties paid on import into the United States and the duties paid on the later import into Canada or Mexico, and unused merchandise substitution is not available. Special tariffs have their own rules, which have changed often since 2025: for example, Section 301 duties are generally recoverable, while some Section 232 duties are limited to manufacturing drawback. Check the current CBP guidance or a licensed customs broker before counting on a refund of a specific tariff.

Step by step

  1. List imports that are later exported, destroyed or used to make exported goods.
  2. Match each export to its import entry, or to a substitute of the same 8-digit HTS subheading.
  3. For unused merchandise, notify CBP at least five working days before export when required.
  4. Keep import entries, export proof (bill of lading, EEI) and production records.
  5. File the claim in ACE within five years of import, directly or through a drawback specialist.
  6. Consider accelerated payment with a bond and prior approval if cash flow matters.

Documents you usually need

Common problems and how to avoid them

A US buyer re-exports your goods but never claims drawback.

What to do: Up to 99 percent of the duties can be refunded if the goods are exported within the time limit and the records link export to import.

Goods arrived defective and must be returned.

What to do: Rejected merchandise drawback applies if they are exported or destroyed within three years of import.

The exported goods are not the exact imported units.

What to do: Substitution is allowed when the goods fall under the same 8-digit HTS subheading, except unused merchandise substitution for exports to Canada or Mexico.

A refund of a special tariff is expected.

What to do: Section 232, 301 and other tariffs have specific drawback rules; confirm the current treatment before relying on it.

Sources

  1. Customs duty drawback and USMCA drawback (13 March 2026) Great Lakes Customs Law
  2. Tariff drawback cheat sheet (July 2026) Alliance Customs Clearance

Rules change often. This note is practical guidance based on the sources above, not legal advice. Confirm current requirements with the authority, your importer or a licensed customs broker before you ship.

Port codes by country

United States port codes (UN/LOCODE)
Share with a colleagueWhatsAppLinkedInX

Trade notes

US Tariff Refunds (IEEPA): How to Claim in CAPE, Step by StepHow to get back IEEPA tariffs paid in 2025–2026: who can claim, filing CAPE declarations in ACE, Phase 3 from 6 October 2026, liquidated entries,…Returned goods relief: re-importing goods without duty in the US, UK and EUWhen goods you exported come back (unsold stock, rejected or returned by the buyer), how to re-import them without paying duty again: US HTSUS…US Import Duties in 2026: How to Find the Tariff on Your ProductHow to find the US import duty on a product in 2026: HTS codes, Section 301, 232 and 338 duties, the IEEPA ruling and refunds, de minimis, customs…

Had this problem? Share how you solved it

Tell us what happened and what worked. We read every message. With your permission we may add your case to this note, without your name or company.

Common questions

How much can US duty drawback refund?

Up to 99 percent of the customs duties, taxes and fees paid on the imported goods.

How long do I have to file a drawback claim?

Generally five years from the date the goods were imported.

Is a bond needed for duty drawback?

Only for accelerated payment, where CBP pays before liquidating the claim; it needs a bond and prior approval.

Does drawback apply to exports to Canada and Mexico?

Yes, but it is limited to the lesser of the US duties and the duties paid in Canada or Mexico, and unused merchandise substitution is not available.

Where are drawback claims filed?

Electronically in CBP's Automated Commercial Environment (ACE).

More free tools

Triplicate AI: your trade assistantCBM calculatorContainer loading calculatorPallet calculatorVolumetric weight calculatorAmount in words converterIncoterms 2020 chartWhich Incoterm should I use?Incoterms 2020 quizFree commercial invoice, packing list and proforma invoice templatesFree commercial invoice templateFree packing list templateFree proforma invoice templateFree shipping instruction (SI) templateFree export sales contract templateFree certificate of origin templateFree export price quotation templateFree purchase order template for importersExport email templatesFree sample invoice template (no commercial value)Shipping container dimensionsContainer number check and trackingDemurrage and detention calculatorPort code lookup (UN/LOCODE)Shipping Mark GeneratorCarton label generatorHS code lookupLetter of Credit ChecklistCertificate of Origin GuideLanded Cost & Import Duty CalculatorLanded cost per unit calculatorExport price calculator (Incoterms quotation)Currency ConverterTrade notesTrade & Shipping GlossaryInvoice & packing list generator

Triplicate is free and keeps getting better. Found it useful? Support Triplicate ♥