Manufacturing Drawback 

Manufacturing Drawback is a type of duty drawback, a rebate that manufacturers can apply for to recoup up to 99% of the duties and fees paid on imported raw materials and components that have been used in the manufacture of export products. 

What Is the Purpose of Manufacturing Drawback? 

The purpose of the Manufacturing Drawback is to lower some of the operating costs for export manufacturers since they are already paying import duties, taxes, and other fees on materials that are then exported overseas as part of a finished product. 

Doing so encourages domestic production, makes American export products more competitive, and promotes foreign trade. 

Applying for Manufacture Drawback 

Manufacturers can apply for Manufacturing Drawbacks retroactively, recouping the import duties and fees on components and raw ingredients once the final product has been exported. Applications for this drawback need to be filed no more than five years after the date of import. 

To meet the criteria for Manufacturing Drawback, applicants must be able to provide proof of export and details of component or material quantities through comprehensive records of their imports and exports. These include invoices, bills of lading, and customs declarations.