Drawback applies to goods that paid duty and were subsequently exported or destroyed. Refunds (CAPE, protest, PSC) apply to goods where duty was incorrectly assessed or imposed. For the same entry, you cannot file both – choose the larger recovery. CAPE-eligible IEEPA duty on subsequently-exported goods is typically larger via drawback (~99%) than CAPE refund.
This guide covers Drawback vs Refund Decision. Refund and recovery work spans multiple statutes and mechanisms – drawback, CAPE refunds, PSCs, protests, reliquidation under § 1520.
For SMB importers, the practical implementation depends on volume, sector, and operational structure.
Drawback covers exported/destroyed goods
Up to 99% of all duty types (base, Section 232, 301, 122). Excludes MPF and HMF.
Refunds cover incorrect duty
CAPE for IEEPA. Protest for liquidation challenges. PSC for pre-liquidation corrections.
Cannot file both for same entry
Choose the larger recovery. Filing both is grounds for denial and possible enforcement.
Decision matrix by scenario
Goods exported/destroyed: drawback. Incorrect IEEPA duty paid: CAPE. Wrong classification on entry: PSC or protest. Entry within 180 days of liquidation with substantive issue: protest.
Frequently asked questions
When is this most relevant?
For SMB importers facing audit, refund opportunity, or compliance gap remediation.
What documentation matters?
CBP forms, supporting records, supplier certificates, and BOM analysis as applicable.
What is the timeline?
Simple matters 2-4 weeks; complex audits or refund filings 3-12 months.
What does this cost?
Project scope $5,000-$45,000 depending on complexity. Refund work often on contingency.
How do I begin?
Book a 15-minute scoping call. We confirm fit before any engagement.
Get started
Run a refund opportunity audit on your import history. Free preliminary estimate.