DRAWBACKYour import duties
don't have to stay
paid.
Your unclaimed duties are expiring on a federal clock. CBP allows a 5-year drawback claim window — after that, your refund is permanently forfeited.
Calculate My Recovery →How drawback recovery works
Four steps. One federal statute. Every dollar you paid in import duties on goods that left the country is eligible for return.
Dutiable Import
Goods enter under HTS classification. CBP collects duty at point of entry. Payment recorded on entry summary.
Manufacturing / Use
Imported materials are substantially transformed or used in production. Bill of materials links import to finished goods.
Export of Finished Goods
Finished goods leave U.S. Customs territory. Export documentation establishes the drawback basis. Proof of export is mandatory.
Duty Drawback Claim
CBP Form 7551 filed. Up to 99% of duties paid on imported materials are refunded. ACE system processes the claim.
| TYPE CODE | PROGRAM NAME | ELIGIBILITY BASIS | MAX REFUND RATE | HTS SCOPE |
|---|---|---|---|---|
| MFGD | Manufacturing Drawback | Substitution or same-condition | 99% | All chapters |
| UNSD | Unused Merchandise | Exported without use | 99% | Selective chapters |
| RJCT | Rejected Merchandise | Defective, not conforming | 99% | All chapters |
| RGLR | Regulatory Drawback | Specific statutory provisions | Varies | Selective |
Recovery rates by industry vertical
Percentage of eligible duties actually claimed, based on Drawback client portfolio data. Most companies recover less than 40% without dedicated drawback infrastructure.
Source: U.S. Customs and Border Protection, annual drawback statistics
| VERTICAL | CODE | AVG ANNUAL DUTY VOLUME | RECOVERY RATE RANGE | PRIMARY HTS CHAPTERS | COMPLEXITY | NOTES |
|---|---|---|---|---|---|---|
| Automotive & Parts | AUTO | $2.1M – $18M / yr | 72–89% | Ch. 84, 85, 87 | HIGH | Sub-assembly BOM matching; substitution drawback common |
| Industrial Machinery | INDM | $800K – $6M / yr | 65–84% | Ch. 84, 85, 73 | HIGH | Steel & aluminum antidumping duties recoverable |
| Consumer Electronics | CELX | $1.4M – $12M / yr | 68–91% | Ch. 84, 85, 90 | MEDIUM | Section 301 tariffs fully eligible; high volume |
| Apparel & Textiles | TXAP | $600K – $4M / yr | 55–78% | Ch. 50–63 | MEDIUM | USMCA substitution rules apply; cut & sew eligibility |
| Food & Beverage | FDVB | $300K – $2.5M / yr | 48–72% | Ch. 02, 04, 17–21 | LOW | Agricultural drawback; perishable documentation critical |
| Chemicals & Materials | CHEM | $900K – $8M / yr | 70–88% | Ch. 28–40 | HIGH | Fungible merchandise; FIFO/LIFO accounting elections |
Recovery rate = duties actually claimed ÷ duties eligible for drawback. Companies without dedicated drawback programs average 12–18% recovery. Drawback clients average 74%.
The federal forfeiture clock
19 U.S.C. § 1313 grants exactly 5 years from the date of import entry. No extensions. No appeals. Every quarter without a filed claim is a quarter of duties permanently forfeited.
If your company imported dutiable goods in 2021 or 2022, those drawback claims expire in 2026–2027. The window is closing now.
Calculate your recovery
Three inputs. Thirty seconds. A dollar figure you can bring to your next budget review — or your CFO's desk.
Duty Drawback Eligibility Checklist
14-point checklist covering documentation requirements, HTS classification review, export verification, and filing deadlines. Used by our analysts on every engagement.