Additional Information on Duty Drawback

U.S. importers are eligible for duty drawback on certain IEEPA tariff actions (i.e., reciprocal tariffs, Brazil domestic tariffs, Russian oil purchase tariffs on goods from India) and the new Section 122 tariffs so long as the importer and shipment meet duty drawback requirements as outlined by U.S. Customs and Border Protection (CBP). Drawback is not allowed on IEEPA fentanyl and trafficking tariffs on imports from China, Mexico, and Canada. Similarly, Section 232 steel and aluminum tariffs are not eligible for drawback. Below is additional information on the scope of duties eligible for drawback.

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Overview of the CBP duty drawback program

Duty drawback is a CBP administered program that allows for a refund of up to 99% of certain import tariffs, taxes, and fees paid on imported goods when those goods, or products made from them, are re-exported or destroyed under CBP supervision. The U.S. duty drawback program is governed by 19 CFR 190. Duty drawback claims must be filed within five years from the date of import to the date of filing.

There are different types of drawbacks, each with their own set of requirements. The two most common are:

• Manufacturing identification drawback: This applies when imported materials are directly used to make a product in the U.S., and that product is later exported or destroyed.‍
• Unused merchandise direct identification drawback: This applies when imported goods are exported or destroyed without being used in the U.S. The goods must be the exact same items that were originally imported.

To submit a drawback claim, importers should work with the customs broker to submit a claim and necessary documentation through CBPs ACE portal.

Scope of duties eligible for drawback (as per 19 CFR 190.3 and linked CSMS guidance below)