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Duty drawback

Get up to 99% of your import duties back.

Duty drawback refunds the duties you paid on imported goods that you later export or destroy. It is one of the oldest programs in US trade law, and most small importers never claim it. Here is how it works, and how it differs from the 2025 tariff refunds.

Look up an HS code free Drawback vs tariff refund ↓

What is duty drawback?

Duty drawback is a US Customs program under 19 U.S.C. 1313 that refunds up to 99% of the customs duties, taxes, and fees you paid on imported merchandise that is later exported or destroyed. It has been on the books since 1789. The logic: if the goods never actually entered US commerce, the duty collected to protect that commerce should come back to you.

The main types of drawback

  • Manufacturing drawback. You import components, manufacture a finished product, and export it. The duty on the imported components is recoverable.
  • Unused merchandise drawback. You import goods and export them unused, or destroy them under CBP supervision. Common for returns, overstock, and discontinued SKUs.
  • Rejected merchandise drawback. You import goods that are defective, not to spec, or shipped without consent, and you export or destroy them.

In many cases you can also claim on substituted goods that are commercially interchangeable with what you imported, which makes drawback far more usable for high-volume sellers than people assume.

Duty drawback vs the 2025 tariff refund

This is the part that confuses importers in 2026, because both are "getting duty back" but they are completely different programs:

  • Duty drawback: the tariff was lawful. You get up to 99% back because the goods were exported or destroyed. Five-year window. Applies whether or not the tariff was ever challenged.
  • 2025 IEEPA tariff refund: the tariff itself was struck down by the Supreme Court in February 2026, so CBP refunds it through its CAPE portal even on goods you imported and sold normally in the US.

If you imported from China in 2025 and sold that inventory in the US, drawback usually does not apply, but the IEEPA refund probably does. Most people searching "duty drawback" right now actually want the IEEPA refund. See the IEEPA tariff refund and check your entries with a free duty refund audit. This page is general information, not legal advice.

Who leaves drawback money on the table

  • Sellers who import to the US, then ship some inventory to customers or warehouses abroad.
  • Brands that destroy unsold, returned, or expired stock instead of exporting it.
  • Manufacturers who import components and export finished goods.
  • Anyone who imports, re-exports, and never realized the duty was recoverable.

Why accurate HS codes are the foundation

A drawback claim matches your import entries to your export or destruction records, and the match runs on HS classification. If your imports and exports are classified inconsistently, the claim falls apart. Getting the 6-digit code right on both sides is step one, and it is exactly what HS Mate does. A licensed customs broker then prepares and files the drawback claim itself, which is specialized, regulated work.

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Deadlines

Drawback claims must generally be filed within 5 years of the import date. That sounds generous, but claims depend on records you have to keep from the moment of import, so the importers who recover the most are the ones who set up classification and record-keeping early rather than reconstructing it years later.

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