DUTY DRAWBACK | 2026-09-27

Duty Drawback: Recovering Duties on Exported or Destroyed Goods Under 19 U.S.C. § 1313

If you import goods and later export or destroy them — or export similar goods — you may recover most of the duties, taxes, and fees you paid. Here is how drawback works.

Duty drawback is a refund of most of the customs duties, taxes, and fees paid on imported merchandise that is later exported or destroyed — up to 99% of what was paid. It is authorized by 19 U.S.C. § 1313 and modernized by the TFTEA of 2015.

Most customs conversations are about paying duties. Drawback is the rare one about getting them back. If your company imports goods and later exports or destroys them — or exports commercially interchangeable substitutes — you may recover up to 99% of the duties you paid.

The Main Types of Drawback

• Manufacturing drawback — § 1313(a) and (b). Duties are recovered on imported materials used to manufacture articles that are then exported (direct identification under (a), or substitution of commercially interchangeable materials under (b)).
• Unused merchandise drawback — § 1313(j)(1). Imported goods that are exported or destroyed without being used in the U.S. qualify for a refund.
• Substitution unused merchandise drawback — § 1313(j)(2). Refunds where substituted merchandise that is commercially interchangeable with the imported goods is exported or destroyed. TFTEA changed substitution to an 8-digit HTSUS classification standard.
• Rejected merchandise drawback — § 1313(c). For goods that do not conform to specifications or were shipped without consent.

Deadlines and Requirements

• Filing window. Under the TFTEA framework, drawback claims generally must be filed within five years of the date of importation.
• Proof. Claims require documentation linking the imported duty-paid merchandise to the exported or destroyed goods, and compliance with the electronic filing and recordkeeping rules in 19 C.F.R. Part 190.
• Accelerated payment and privileges. Companies can apply for accelerated payment and one-time waivers/privileges to speed refunds.

Who Benefits Most

Companies that import components and export finished goods, that re-export imported merchandise, or that destroy defective imports frequently leave significant drawback unclaimed. A drawback program can turn sunk duty costs into recovered cash flow.

Frequently Asked Questions

How much can I recover with drawback?

Up to 99% of the duties, taxes, and fees paid on the imported merchandise.

What has to happen to the goods?

They (or commercially interchangeable substitutes) must be exported or destroyed, generally without use in the U.S., depending on the drawback type.

How long do I have to file?

Generally five years from the date of importation under the TFTEA rules.

What law governs drawback?

19 U.S.C. § 1313; regulations at 19 C.F.R. Part 190.

Related Customs & Trade Guides

• Customs valuation basics under 19 U.S.C. § 1401a
• USMCA rules of origin for California importers
• Tariff classification disputes: getting the HTSUS right
• Los Angeles customs & international trade attorney

Talk to a Duty Drawback Attorney

If your company imports and later exports or destroys goods, you may be leaving refunds on the table — and the five-year clock is running. Trembach Law Firm helps California importers set up and file duty drawback claims. Call (818) 514-7680.

Contact Trembach Law Firm at (818) 514-7680 for a confidential consultation.

Trembach Law Firm | 27001 Agoura Road, Suite 350, Calabasas, CA 91301