The Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015 introduced the most significant modernization of the U.S. duty drawback program in decades. The law updated how drawback claims are calculated, documented, and filed with U.S. Customs and Border Protection (CBP).
For companies involved in importing and exporting goods, these changes simplified many aspects of the drawback process while expanding opportunities to recover duties.
What Is TFTEA?
The Trade Facilitation and Trade Enforcement Act of 2015 was signed into law on February 24, 2016. The legislation introduced sweeping changes to trade enforcement, customs procedures, and duty drawback rules.
The modernized drawback provisions became effective in 2018, followed by a transition period that allowed claimants to file under either the previous law or the new framework. Beginning February 24, 2019, all drawback claims were required to comply with the updated TFTEA rules.
These reforms were designed to simplify the drawback process and make the program more accessible to companies engaged in international trade.
Key Changes to Duty Drawback Under TFTEA
The modernization of drawback rules introduced several important changes that continue to shape the program today.
Substitution Based on HTS Classification
Under the modernized drawback rules, substitution claims are generally determined using the 8-digit Harmonized Tariff Schedule (HTS) classification rather than the older commercial interchangeability standard.
If the HTS description begins with the term “other,” substitution may require matching at the 10-digit HTS statistical reporting number.
This change simplified substitution claims for many companies by providing a clearer and more consistent matching standard.
Extended Timeframe for Filing Drawback Claims
TFTEA established a standard timeframe of five years from the date of importation to file a drawback claim.
This extended window gives companies more flexibility to evaluate export activity and identify qualifying transactions before submitting claims.
Expanded Eligibility for MPF and HMF Refunds
Under modernized drawback rules, claimants may recover Merchandise Processing Fees (MPF) and Harbor Maintenance Fees (HMF) under certain drawback provisions.
These recoveries may apply to both manufacturing drawback and unused merchandise drawback claims.
Simplified Documentation Requirements
TFTEA removed the requirement for formal Certificates of Delivery that were previously used to document transfers of merchandise.
Instead, companies may now rely on standard business records maintained in the normal course of operations to track the transfer of goods within the supply chain.
This change significantly simplified documentation requirements for many drawback claimants.
Standardized Duty Calculation Rules
The modernized law introduced updated rules for calculating the duty amount that may be claimed.
For substitution claims, the allowable refund is generally based on the lesser of:
- the duties paid on the imported merchandise, or
- the duties that would have been paid if the substituted merchandise had been imported
These rules help standardize claim calculations across different drawback provisions.
How TFTEA Changed the Duty Drawback Landscape
The modernization of drawback rules made the program more accessible to companies that previously found the process too complex or restrictive.
By simplifying substitution standards, extending filing timelines, and reducing documentation requirements, TFTEA created new opportunities for businesses to recover duties paid on imported goods.
Many companies that previously assumed they were not eligible for drawback now qualify under the modernized rules.
Companies evaluating their eligibility should review the different types of duty drawback programs that may apply to their supply chains.
How J.M. Rodgers Helps Companies Navigate Modern Drawback Rules
Although TFTEA simplified many aspects of the drawback program, the process still requires careful documentation, data analysis, and regulatory compliance.
J.M. Rodgers helps importers, exporters, and manufacturers evaluate drawback eligibility, implement compliant programs, and recover duties under the modernized rules.
Our duty drawback specialists assist companies with:
- evaluating eligibility under TFTEA rules
- identifying qualifying transactions across supply chains
- preparing and filing drawback claims through CBP’s Automated Commercial Environment (ACE)
- maintaining documentation required for compliance reviews and audits
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.