Glossary

Duty Drawback

Tags: Glossary

Duty drawback, or Drawback, is an export incentive program that allows U.S. importers, exporters, and manufacturers to recover, in part or in whole, certain duties, taxes, and fees paid on imported merchandise or domestically produced flavoring extracts, medicinal or toilet preparations, bottled distilled spirits and wines

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What is drawback?

Drawback is a refund of the Customs duties and certain fees paid on imported merchandise as well as the refund of certain very specific Internal Revenue taxes. Customs issues these refunds only when the imported merchandise is either exported or destroyed and when a claim for drawback has been made. Drawback laws allow drawback claimants to file drawback claims for imports five years from the date the merchandise is imported or entered into the United States. A claim for drawback may not be filed prior to the date of exportation.

What types of drawback can be applied to goods?

Unused Merchandise Drawback

Direct Identification (19 USC 1313(j)(1))
Substitution (19 USC 1313(j)(2))

Substitution of Finished Petroleum Derivatives (19 USC 1313(p))

Manufacturing Drawback

Direct Identification (19 USC 1313(a))
Substitution (19 USC 1313(b))

Other Common Drawback Types

Rejected Merchandise Drawback (19 USC 1313(c))
Packaging Material (19 USC 1313(q))
Flavoring extracts; medicinal or toilet preparations; bottled distilled spirits and wines (19 USC 1313(d))


Learn More

Related Help Articles

How Do I Estimate Customs Duties?

What are Anti-Dumping and Countervailing Duties?

Related Glossary Terms

HS / HTS Codes

CBP (Customs and Border Protection)

Resources

Duty Drawback - CBP

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