If your company imports goods into the United States and later exports them, incorporates them into exported products, or destroys them under supervision, you may be eligible to recover duties through the U.S. duty drawback program.
Duty drawback allows companies to reclaim up to 99% of duties, taxes, and certain fees paid on imported merchandise that ultimately leaves the United States. For many companies involved in manufacturing, distribution, or international trade, these refunds can represent a significant financial opportunity.
However, establishing a compliant drawback program requires careful planning, documentation, and knowledge of U.S. Customs and Border Protection (CBP) regulations.
This guide outlines five practical steps companies can take to begin evaluating and implementing a duty drawback program.
Step 1: Understand Your Company’s Import and Export Activity
The first step in starting a duty drawback program is evaluating your company’s supply chain and determining whether your imports and exports may qualify.
Businesses that commonly qualify for drawback include companies that:
- export finished goods manufactured with imported components
- re-export unused imported merchandise
- distribute imported products to international markets
- destroy imported goods that cannot be sold in the United States
Understanding how your products move through your supply chain helps determine which type of duty drawback program may apply.
Step 2: Identify the Applicable Drawback Program
Different drawback provisions apply depending on how imported merchandise is used before export.
Two of the most commonly used programs are:
Manufacturing Drawback
This applies when imported materials are used to manufacture products that are later exported.
Unused Merchandise Drawback
This applies when imported goods are exported or destroyed without being used in the United States.
Understanding which drawback provision applies to your business is essential to determining potential refunds and documentation requirements.
Step 3: Ensure Proper Documentation and Recordkeeping
Duty drawback claims require detailed documentation linking imported goods to exported merchandise.
Companies pursuing drawback should maintain records, including:
- Import entry summaries and commercial invoices
- Export documentation, such as bills of lading
- Inventory records and product classifications
- Manufacturing records and bills of materials, when applicable
Maintaining accurate documentation is critical because drawback claims may be reviewed during duty drawback audits conducted by CBP.
Step 4: Evaluate Potential Refund Opportunities
Before implementing a drawback program, companies should analyze their import and export activity to determine potential refund opportunities.
A drawback analysis typically evaluates:
- duty rates paid on imported merchandise
- export volumes and destinations
- product classifications and HTS codes
- manufacturing processes and supply chain structure
This analysis helps determine whether the potential refunds justify the administrative effort required to manage drawback claims.
Step 5: Work With Experienced Duty Drawback Specialists
Duty drawback regulations can be complex, particularly for companies with high transaction volumes or multiple supply chain partners.
Working with experienced duty drawback specialists can help companies identify eligible transactions, prepare accurate claims, and maintain compliance with CBP regulations.
Experienced drawback professionals can also help companies:
- evaluate eligibility across different drawback programs
- establish compliant documentation processes
- file claims electronically through CBP’s Automated Commercial Environment (ACE)
- maintain audit-ready records
How J.M. Rodgers Helps Companies Recover Duty Drawback
J.M. Rodgers has more than 70 years of experience helping companies recover duties through the duty drawback program.
Our team of licensed customs brokers and drawback specialists works with businesses across multiple industries to develop customized drawback programs aligned with their supply chains.
Our duty drawback services include:
- drawback eligibility evaluations
- claim preparation and electronic filing
- documentation and compliance support
- ongoing program management and reporting
By combining deep regulatory knowledge with proprietary drawback technology, J.M. Rodgers helps companies maximize duty recovery while maintaining compliance with CBP regulations.
Explore Your Company’s Duty Drawback Opportunities
Many companies involved in international trade are eligible to recover duties through the duty drawback program, but may not realize how much they could potentially recover.
If your company imports goods that are later exported, incorporated into exported products, or destroyed, you may qualify for duty drawback refunds.
Complete the Duty Drawback Eligibility Form below to connect with our specialists and learn how the duty drawback program could benefit your business.