CBP Confirms Section 301 Tariffs Are Drawback Eligible
CBP has corrected an ACE validation error that caused confusion over Section 301 drawback eligibility. The agency has confirmed that the affected Section 301 tariffs are eligible for duty drawback.
Updated August 19, 2026
U.S. Customs and Border Protection (CBP) has corrected a recent ACE system update that caused confusion over whether certain Section 301 tariffs were eligible for duty drawback.
The important takeaway for importers: Section 301 duties remain eligible for drawback.
What Happened?
On August 12, 2026, CBP deployed updates to its FD07 drawback validations in ACE that disallowed drawback for certain newly implemented Section 301 tariff classifications.
The affected classifications included:
- HTSUS 9903.05.01, covering Section 301 duties on certain products from Brazil
- HTSUS 9903.05.20 through 9903.05.84, covering the recently implemented Section 301 Forced Labor Import Duties
CBP subsequently issued a notice describing the change, creating uncertainty for importers and drawback filers regarding the eligibility of these additional duties.
CBP Corrects the Error
On August 18, CBP issued a correction confirming that the affected Section 301 classifications are drawback eligible.
CBP also confirmed that the FD07 validations in the ACE production environment have been corrected to allow drawback for these classifications and that the Drawback Error Dictionary has been updated accordingly.
This clarification is consistent with CBP’s longstanding position that Section 301 duties are eligible for duty drawback.
What This Means for Importers
Importers paying the new Section 301 duties should not assume that these additional tariff costs are unrecoverable.
Companies that subsequently export or destroy qualifying merchandise may be able to recover eligible Section 301 duties through duty drawback, provided all applicable drawback requirements are satisfied.
Importers should also review any drawback claims or filing activity that may have been affected while the incorrect ACE validation was in place.
With tariff costs continuing to increase the landed cost of imported goods, identifying drawback-eligible duties can represent a significant recovery opportunity.
J.M. Rodgers helps companies identify, establish and manage duty drawback to recover eligible duties paid on imported merchandise.
If your company is paying Section 301 tariffs and exporting merchandise from the United States, contact J.M. Rodgers to determine whether duty drawback may provide an opportunity to recover those costs.