Drawback

What is duty drawback?

When you import merchandise into the U.S., you typically pay duties, taxes, and fees. Under certain conditions, if that imported merchandise is later exported (or in some cases destroyed), you may be eligible to receive a refund (up to 99 %) of those duties.

At Premio International Services, we help you tap into this program and turn past imports into future value.

Who can claim duty drawback?

The following parties may claim drawback:

The exporter (or destroyer) of the merchandise.

The importer, if they are also the exporter (or have been assigned the right to claim).

The manufacturer, producer or an intermediate party, if the import-rights have been properly assigned.

Because the regulations are complex and the paperwork is substantial, working with a qualified drawback broker (like us) is strongly advisable.

Why it matters

You could recover significant sums — duties paid on past imports.

It enhances your cash-flow, especially for companies with export or manufacturing operations.

It encourages efficient use of imported merchandise and supports supply-chain optimization.

Types of drawback common in practice

Here are the most frequent categories:

Manufacturing Drawback – Imported merchandise is used in a manufacturing process, then the finished article (or component) is exported or destroyed, within the statutory period.

Unused Merchandise Drawback – Merchandise that was imported unused and then exported or destroyed within the allowed time frame.

Rejected Merchandise Drawback – Merchandise that is defective or non-conforming and is exported or destroyed after import.

Same Condition Drawback (under USMCA / NAFTA rules) – Merchandise exported to Canada or Mexico (or returned) in the same condition (without material alteration).

We’ll help you identify which category fits your scenario.

What duties are eligible (and what aren’t)?

Eligible duties often include:

Ordinary customs duties (import duties)

Marking duties

Internal revenue taxes (in some cases)

Customs fees like Merchandise Processing Fee (MPF) and Harbor Maintenance Fee (HMF) when applicable under the statute.

Not eligible are:

Anti-dumping and countervailing duties

Duties paid under tariff-rate quotas for agricultural products (with some exceptions)

Other fees or taxes outside the statute’s scope.

We’ll review your historical import entries and help you assess duty eligibility.

Time frames & filing deadlines

In most cases, you have up to five years from the date of import to file a drawback claim. Claims must be filed at one of the designated drawback offices. Large companies with multiple entries may want to organise a recurring program.

We’ll help you monitor deadlines and assemble the required documentation so you don’t miss out.

How our team at Premio International Services can help

Here’s how we work with you:

Initial consultation & eligibility review – We’ll analyse your import history, identify eligible shipments, and estimate potential drawback value.

Documentation & mapping – We’ll gather entry/trade data, link it to export/destroy records, and provide a clear path.

Claim preparation & filing – We prepare the claim, liaise with the relevant U.S. Customs offices, and manage the submission process.

Post-filing support & audit readiness – We help you maintain records, respond to follow-up queries, and maintain compliance for audits.

By working with us, you reduce risk, streamline the process, and maximise your return.

Key take-aways

Duty drawback is a valuable tool for recovering duties on imports that are exported or destroyed.

The regulations are complex — eligibility depends on product, documentation, timeline and export/destruction.

The five-year filing window is critical; delays can reduce or eliminate the benefit.

Working with an experienced broker can significantly increase the chances of success and proper compliance.

Ready to explore your drawback opportunity?

Contact our dedicated drawback team at Premio International Services, Inc. to schedule a review of your imports and exports. We’ll show you the potential value and walk you through the next steps.

This guide is for informational purposes only and does not constitute legal or tax advice. Regulations may change, and you should consult with a qualified professional for your specific situation.

FAQ – Frequently Asked Questions

1. How much duty can I recover?

You can recover up to 99% of the duties, taxes, and fees paid on eligible imported merchandise. The exact amount depends on the type of drawback and eligibility category.

2. How long do I have to file a claim?

Most claims must be filed within five years of the import date. Filing after this period may result in forfeiture of your recovery.

3. What documentation do I need?

Import entry records

Export shipping documentation (or proof of destruction)

Manufacturer or production records (if applicable)

Drawback claim forms filed with U.S. Customs

4. Can I claim duty drawback for merchandise used in manufacturing?

Yes. This is called Manufacturing Drawback. The imported goods must be used in production, and the finished goods exported or destroyed.

5. Are all duties eligible for drawback?

No. Eligible duties typically include ordinary customs duties, marking duties, and some fees. Anti-dumping, countervailing duties, and certain taxes are usually ineligible.

6. Do I have to manage this myself?

Not at all. Premio International Services handles the process end-to-end, including review, documentation, filing, and audit support.

7. How long does the process take?

Timing depends on claim complexity, export records, and U.S. Customs processing. Most claims take several months, but our team ensures proper documentation to speed approval.