Rejected Merchandise Drawback 

Rejected Merchandise Drawback is a type of duty drawback for imported materials that are either shipped without the consignee’s consent or that do not meet the agreed specifications at the time of import. 

What Is the Purpose of Rejected Merchandise Drawback? 

The Rejected Merchandise Drawback allows the importer to recoup up to 99% of the customs duties, taxes, and other fees on rejected duty-paid imported materials. These materials can then be destroyed under Customs supervision or exported back to the vendor. 

This drawback scheme also covers faulty merchandise that have already been sold at retail, such as malfunctioning electronics that a consumer has returned after purchase. Another example would be if merchandise arrives that is not the agreed-upon color or size. 

How Can You Claim Rejected Merchandise Drawback? 

For importers to receive the Rejected Merchandise Drawback, they must apply no more than five years after the export or destruction of the rejected merchandise. 

The complete drawback claim must also contain documentation showing why the merchandise was rejected, such as not matching specifications, being damaged/faulty, or being sent without the consignee’s consent. It must also contain a Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback, which allows Customs and Border Protection (CBP) time to examine the merchandise. 

If the claimant is someone other than the importer, then this needs to also include a signed statement from all owners of the merchandise (except for the end user) saying that no other drawback claims for the merchandise have been made.