Duty drawback refunds up to 99 percent of the duties, taxes, and fees you paid on imported goods that you later export or destroy. You claim it under 19 USC 1313, you file it in ACE, and you have five years from the date of import to do it.
The 99 percent number, and the 1 percent CBP keeps
A container of components lands in New Jersey, the duty gets paid, and six months later half the shipment goes back out to a customer in Mexico. Most importers eat that duty as a cost of doing business. They do not have to. Drawback exists for exactly this case: goods that entered the United States and then left again, or were destroyed under CBP supervision, qualify for a refund of nearly everything paid at entry.
The number is 99 percent. CBP keeps 1 percent of the duties, taxes, and fees as its cut, and returns the rest. On a $40,000 duty bill that is $39,600 back. The catch is that drawback is a claim you file, not a refund that arrives on its own. Nobody at CBP will call to tell you the money is waiting.
Three kinds of drawback, and which one fits your shipment
The statute splits drawback into three flavors, and picking the wrong one is the most common way a claim stalls. Unused merchandise drawback, under 1313(j), covers goods you imported and exported in the same condition, without using them. Manufacturing drawback, under 1313(a) and (b), covers imported materials that went into something you made here and then exported. Rejected merchandise drawback, under 1313(c), covers goods that arrived defective or did not match the order, and went back.
The distinction matters because the evidence differs. Unused merchandise needs proof the goods left in the same condition they arrived in. Manufacturing needs a bill of materials tying the imported input to the exported finished good. Rejected merchandise needs the documentation of the defect or the mismatch. File under the wrong section and CBP asks for proof you cannot produce, and the claim sits.
The five-day notice most importers miss
For unused and rejected merchandise, CBP wants a Notice of Intent, Form 7553, at least five working days before the goods leave. Skip it and the claim can fail outright, even if everything else is perfect. This is the trap that catches small importers: the export is arranged on a Tuesday, the truck leaves Thursday, and nobody told CBP anything.
The notice is not hard to file, but it has to happen before the export, not after. Build it into the export checklist the same way you build in the commercial invoice. The five working days are business days, so a Friday export needs the notice in by the previous Friday at the latest.
Filing in ACE, and what slows a claim down
Drawback claims go in electronically through ACE, and the Trade Facilitation and Trade Enforcement Act of 2015 modernized the whole process: simpler rules, electronic filing, and a five-year window from the date of import to make the claim. That window is generous, but it still closes. A claim filed five years and a day after import is dead.
Two things never qualify, and importers keep trying them anyway. Antidumping and countervailing duties never qualify for drawback, no exceptions. Section 232 duties qualify only where the specific proclamation allows it, which is not most of the time. Check the proclamation language before you build a drawback forecast around Section 232 money, or the forecast will be wrong by the full amount.
Keep reading
Related guides on this site: how duty drawback works from the start the first sale rule that cuts dutiable value before duty is even assessed Section 232 duties on the full customs value of steel and aluminum More from LandedWatch.
Frequently asked questions
How much duty can I get back through drawback?
Up to 99 percent of the duties, taxes, and fees paid at import. CBP keeps 1 percent. The refund covers the duties on the goods you exported or destroyed, not the duties on goods you kept and sold here.
Can I claim drawback on antidumping duties?
No. Antidumping and countervailing duties never qualify for drawback. Section 232 duties qualify only where the specific proclamation allows it, so check the proclamation before assuming those duties are recoverable.
What happens if I export the goods before filing the notice of intent?
For unused and rejected merchandise, CBP requires Form 7553 at least five working days before export. Exporting first can kill the claim, even if you have every other document in order.
How long do I have to file a drawback claim?
Five years from the date of import. The claim is filed electronically in ACE, and the clock runs from the import date, not from the export date.