Drawback bonds support both standard drawback claims and accelerated payment programs. Continuous drawback bonds are sized at 1-2 years of expected drawback amount; single transaction bonds (STBs) cover specific claims. Surety underwriting considers importer financial condition and compliance history.
This guide covers Drawback Bond Requirements. Duty drawback recovers up to 99% of duty on imported goods that are subsequently exported, destroyed, or used to manufacture exported goods.
For SMB importers, the practical implementation depends on volume, sector, and specific operational structure.
Continuous drawback bond
Annual bond covering all drawback activity through the year. Sized at expected annual claim amount. Renewable annually.
Single transaction bond (STB)
Bond for specific drawback claim. Used for one-off large claims or where continuous bond is not in place.
Bond amount calculation
For accelerated payment: typically 1-2 years of expected claims. For standard claims: typically 100% of claim amount.
Surety underwriting and cost
Surety considers importer financials and compliance history. Bond cost typically 1-3% of bond amount per year.
Frequently asked questions
When is this most relevant?
For SMB importers with active duty exposure or those evaluating duty mitigation options.
What documentation is required?
Varies by topic. Core: CBP Form 7501, supplier certificates, BOM analysis, manufacturing process documentation.
How long does this take to implement?
Simple cases 2-4 weeks; complex setups 8-16 weeks. Some moves require binding rulings adding 30-90 days.
What does this cost?
Project scope: $5,000-$25,000 for most engagements. Ongoing retainer for active operations.
How do I begin?
Book a 15-minute scoping call. We confirm fit and scope before any engagement.
Get started
Run a drawback opportunity audit on your import-export profile. Fixed-fee or contingency.