Drawback Case Studies

These anonymized case studies show how SMB exporters recovered duty through drawback. Common pattern: 3-6 months of setup work yielding 6-figure annual recovery for active exporters.

This guide covers Drawback Case Studies. 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.

Case 1: Midwest agricultural equipment exporter

Manufacturer importing components, exporting finished equipment. Set up manufacturing drawback program. Year-1 recovery $185k; ongoing $200k+/year.

Case 2: Texas petrochemical exporter

Houston operator importing specialty chemicals, exporting finished products. Manufacturing drawback at scale. Year-1 recovery $480k.

Case 3: Apparel returns-to-supplier

Mid-market apparel importer with 5% return rate. Unused merchandise drawback on returned-to-supplier inventory. Year-1 recovery $215k.

Case 4: Defective consumer goods

Electronics importer with rejected merchandise (defective units). Rejected merchandise drawback. Year-1 recovery $120k.

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.

About the author

Kyle Peacock is the Principal of Peacock Tariff Consulting, an independent tariff and customs advisory firm serving SMB importers across the U.S., Canada, the U.K., and the E.U. He has been quoted in Forbes, CNN, The Washington Post, BBC, CBC, CTV, Financial Post, Nasdaq, Supply Chain Brain, and Harvard Business School publications. Connect on LinkedIn.