Duty Drawback Consulting Services: Recovering Up to 99% of Duties on Exported Goods

The Most Underutilized Refund Program in U.S. Trade

Duty drawback dates back to 1789. The concept: when duties are paid on imported goods that are subsequently exported, the government refunds up to 99 percent. Industry estimates suggest only a small fraction of eligible duties are actually recovered, leaving billions unclaimed.

Types of Duty Drawback

Manufacturing drawback applies when imported goods are used in production of exported articles. Unused merchandise drawback covers goods exported in the same condition. Substitution drawback applies when exported goods are the same kind and quality as imports. Rejected merchandise drawback covers returned goods.

The Drawback Modernization Act

TFTEA significantly liberalized the program: expanded substitution definition to same eight-digit HTSUS classification, extended the export deadline from three to five years, and simplified filing.

Building a Drawback Program

Start with a feasibility study. Establish program infrastructure including compliance officer, data feeds, and standard procedures. File claims electronically through CBP’s drawback module. Manage the program with regular filing and periodic reviews.

Ready to Take Action?

Peacock Tariff Consulting specializes in identifying drawback opportunities and building programs that deliver ongoing recoveries. Contact us today.