How much duty drawback can I get?

Up to 99 percent of the duties, taxes and fees paid on the imported goods. $50,000 of eligible duty returns $49,500.

How long do I have to file a drawback claim?

5 years from the date the goods on which drawback is claimed were imported.

Is there duty drawback in the EU?

Not as a refund system — the EU abolished its old inward-processing drawback. Duty on goods meant for re-export is suspended at import under inward processing instead.

Term

Duty drawback

Duty drawback is the US refund of duties, certain taxes and fees paid on imported goods that are later exported or destroyed — unused, rejected, or after being used to make an exported product. The refund is 99 percent of what was paid, and the claim must be filed within 5 years of the date the goods were imported.

Also called drawback, customs drawback, import duty refund, manufacturing drawback, unused merchandise drawbackApplies in US, EU, UKUpdated 13 October 2026

Three main types

Type	When it applies
Manufacturing	Imported goods are used to make an article that is exported or destroyed
Unused merchandise	Imported goods are exported or destroyed without being used
Rejected merchandise	Goods not conforming to sample or specifications, shipped without the consignee's consent, or defective

CBP describes drawback as the refund of certain duties, internal revenue taxes and certain fees collected on import and refunded when the merchandise is exported or destroyed. The statute, 19 USC 1313, sets the refund at 99 percent of the duties, taxes and fees paid, gives 5 years from import to claim, and makes the claimant liable for the full amount it claims. A claimant who wants the money before CBP liquidates the claim can ask for accelerated payment, backed by a bond equal to 100% of the estimated accelerated amount.

Worked example: a manufacturer's claim

Duty paid on imported cotton fabric: $50,000 · made into shirts and exported → claim 99% = $49,500

CBP's regulation gives the same arithmetic: a claim on $1,000 of import duties should be for $990. A claim calculated above 99 percent is not paid until it is corrected.

In the EU and UK

Neither refunds duty this way. The EU says its former inward-processing drawback system is abolished: goods meant for re-export go under inward processing, which suspends duty when they arrive rather than refunding it when they leave. UK inward processing likewise lets traders suspend customs duty and import VAT on goods imported for processing.

The mistake people make

Counting every duty as refundable. CBP has said goods subject to Section 232 are ineligible for refund of those duties, so a business budgeting drawback on steel or aluminium inputs needs to check which part of its duty bill qualifies before it prices an export deal on the refund.

FAQ

Duty drawback: common questions

How much duty drawback can I get?: Up to 99 percent of the duties, taxes and fees paid on the imported goods. $50,000 of eligible duty returns $49,500.
How long do I have to file a drawback claim?: 5 years from the date the goods on which drawback is claimed were imported.
Is there duty drawback in the EU?: Not as a refund system — the EU abolished its old inward-processing drawback. Duty on goods meant for re-export is suspended at import under inward processing instead.