Duty Drawback

Duty drawback can return up to 99% of the duties paid on imported goods that you later export or destroy, which adds up quickly for brands with high tariffs and international sales. It applies to brands that ship imported products to foreign customers, return goods to overseas vendors, or destroy unsellable imports under CBP rules. For example, $10,000 of duties paid on units later exported could return up to $9,900. Claims must be filed within five years of import, with records linking each export to its import entry.

Refund = duties paid on qualifying units × 99%

Can ecommerce brands claim duty drawback on international orders?

Often yes, if you can link the exported units to import entries where duties were paid and file within five years of import. Unused merchandise drawback allows substitution of commercially interchangeable goods, which helps high-volume sellers; a drawback specialist can assess eligibility.

How much duty can be recovered through drawback?

Up to 99% of the duties, taxes, and certain fees paid on qualifying imports. On $10,000 of duties, the maximum refund is $9,900.

What is the deadline to file a duty drawback claim?

Claims must be filed within five years of the date of import. Keep import entries, export proof, and inventory records linked from the start, since missing links are a common reason claims fail.

• Landed CostTotal cost to get a product ready to sell
• Importer of RecordIORParty legally responsible for an import
• Entry SummaryCBP Form 7501Customs filing that declares duties owed
• Customs BrokerLicensed filer of US customs entries
• Bonded WarehouseStorage where duty waits until withdrawal
• Foreign-Trade ZoneFTZUS area where duty is deferred