Goods that entered U.S. consumption from a Foreign Trade Zone (paying duty on the consumption entry) are eligible for drawback if subsequently exported. The FTZ admission does not bar later drawback. Configuration: FTZ admission → consumption entry (paying duty) → export → drawback.
This guide covers Drawback for Goods That Left an FTZ. 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.
Standard drawback eligibility
Goods that paid duty on consumption entry and are subsequently exported within 5 years are eligible.
FTZ admission does not bar drawback
Whether goods came in directly or through an FTZ, drawback applies on the consumption duty paid.
Documentation
FTZ admission records (CBP Form 214), consumption entry summary (Form 7501), export documentation, BOM linking import to export.
Common configuration
High-volume importers using FTZ for staged distribution, then exporting portions of inventory. Drawback recovers consumption-entry duty on the exported portion.
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.