Oil & Chemical Duty Drawback

Updated: February 26, 2026

Editor’s Note: This article has been updated to reflect current law under 19 U.S.C. §1313(p), the implementation of TFTEA drawback regulations under 19 CFR Part 190, and current ACE electronic filing requirements.

Finished Petroleum Derivatives Duty Drawback Under 19 U.S.C. §1313(p)

Finished petroleum derivatives duty drawback is governed by 19 U.S.C. §1313(p), a specialized provision of the drawback statute that applies to certain petroleum, petrochemical, and chemical products.

This provision allows for the refund of duties paid on imported merchandise when merchandise classified under the same 8-digit Harmonized Tariff Schedule provision is exported within 180 days after importation.

Unlike general unused merchandise or manufacturing drawback under §1313(j) and §1313(b), petroleum drawback operates under its own statutory framework and timing rules.

Qualifying Tariff Provisions

Eligibility is limited to specific tariff provisions identified in §1313(p) and implemented through 19 CFR Part 190. These provisions fall primarily within Chapters 27, 29, 38, and 39 of the Harmonized Tariff Schedule of the United States.

Qualifying headings and subheadings include, but are not limited to:

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*
3914*

Not all products within these chapters qualify. Eligibility depends on whether the imported merchandise falls within the statutory tariff provisions listed in §1313(p). Accurate 8-digit HTS classification is therefore essential.

Core Eligibility Requirements

Petroleum duty drawback under §1313(p) is substitution-based and requires strict compliance with the following elements:

• The claimant must have duty-paid imports classified under qualifying tariff provisions.
• The exported merchandise must share the identical 8 digit HTS classification as the imported merchandise.
• The export must occur within 180 days after the date of importation.
• Claims must be filed in accordance with 19 CFR Part 190 through ACE.

The 180-day export window is unique to this provision and differs from the general five-year export period applicable to most other drawback types.

The 8-Digit HTS Matching Rule

Substitution under §1313(p) is permitted based on identical 8-digit HTS classification, regardless of commercial differences between products, provided all statutory conditions are satisfied.

For example:

If imported gasoline is classified under HTS 2710.11.15 and exported jet fuel is also classified under HTS 2710.11.15, the duty paid on the imported gasoline may be designated against the exported jet fuel, assuming compliance with timing and documentation requirements.

This classification-based substitution framework is specific to the petroleum derivatives provision and must be supported by accurate tariff analysis.

Compliance and Filing Requirements

Petroleum duty drawback claims are filed electronically with U.S. Customs and Border Protection through the Automated Commercial Environment in accordance with 19 CFR Part 190.

Key compliance elements include:

• Documentation of duty payment at import
• Accurate tracking of import and export dates
• Quantity reconciliation within the 180-day statutory window
• Proper designation of imports to exports
• Maintenance of required records under CBP regulations

Because petroleum drawback claims often involve high volumes and significant duty exposure, internal controls and periodic compliance reviews are critical.

Data Required to Evaluate Petroleum Drawback Potential

To assess eligibility and estimate refund exposure, companies should generate import and export reports limited to qualifying tariff provisions.

Import Report Data Elements:

• 8-digit HTS number
• Quantity imported
• Unit of measure
• Duty paid
• Date of import

Export Report Data Elements:

• 8-digit HTS number
• Quantity exported
• Unit of measure
• Date of export

By comparing imported and exported quantities within the 180-day period and confirming identical 8-digit HTS classifications, potential refund exposure can be calculated.

Financial Impact of Petroleum Duty Drawback

Many qualifying petroleum and chemical tariff provisions carry meaningful duty rates. For high-volume importers and exporters, petroleum duty drawback can generate substantial refunds.

However, strict timing and classification requirements mean that errors can invalidate otherwise eligible claims. Proper program design is essential.

Is Petroleum Duty Drawback Right for Your Operation?

If your company imports and exports products classified under qualifying provisions in Chapters 27, 29, 38, or 39, you may have recoverable duty exposure under §1313(p).

A structured classification review and transaction-level analysis can determine eligibility and quantify refund potential. J.M. Rodgers works with energy, chemical, and manufacturing clients to design compliant petroleum duty drawback programs aligned with current CBP regulations.

Contact us today to schedule a petroleum duty drawback assessment and determine how much duty your organization may be eligible to recover under current law.