Finished Petroleum Derivatives Duty Drawback

Duty drawback on finished petroleum derivatives allows for the refund of duties paid on imported merchandise that are classified under specific qualifying tariff numbers. These qualifying tariff numbers are found in chapters 27, 29, 38 and 39 of the Harmonized Tariff Schedule of the United States. The following is a listing of the tariff numbers from those chapters that qualify for this type of drawback: 2707*, 2708*, 2709.00*, 2710*, 2711*, 2712*, 2713*, 2714*, 2715*, 2901*, 2902*, 2903.21.00*, 2909.19.14*, 2917.36*, 2917.39.04*, 2917.39.15*, 2926.10.00*, 3811.21.00*, 3811.90.00*, 3901*, 3902*, 3903*, 3904*, 3905*, 3906*, 3907*, 3908*, 3909*, 3910*, 3911*, 3912*, 3913* and 3914*.

Rules for Petroleum Derivatives Duty Drawback

The basic rules for finished petroleum derivatives drawback are:

  1. The drawback claimant must have exports of merchandise with the same harmonized tariff number, at the 8 digit level, as their own duty paid imported merchandise.
  2. These exports must occur within 180 days of the duty paid import.

For example, the tariff classification for gasoline is 2710.11.15 and the tariff classification for jet fuel is also 2710.11.15. As a result of these tariff classifications being the same, at the 8 digit level, we may claim duty drawback refunds of the duty paid on imported gasoline designated against exported jet fuel.

In order to determine if your company would qualify for this type of drawback, we will have you prepare the following two reports based on the tariffs listed above:

  1. Import Report consisting of the following data elements: Harmonized tariff number, quantity imported, unit of measure, duty paid and year imported.
  2. Export Report consisting of the following data elements: Harmonized tariff number, quantity exported, unit of measure and year exported.

By comparing the tariff numbers imported and exported on these reports, we will be able to provide you with an estimated idea of your finished petroleum derivatives duty refund potential. Duty rates for many of these qualifying tariff numbers are rather high which translates into potentially very large duty drawback claims.