Duty Drawback
Duty Drawback allows companies to reclaim up to 99% of import duties on goods that are subsequently exported or destroyed. LOGISTEED America's Customs Brokerage team streamlines this complex process, helping clients identify eligible claims, prepare documentation, and secure maximum refunds with confidence.
Our Expertise
- Comprehensive Claim Management: Filing, tracking, and record maintenance for accelerated refunds.
- Compliance Assurance: Expertise in CBP regulations under 19 CFR part 190.
- Full-Scoping of Your Supply Chain: Wide-range of Expertise in various Drawback Types: Direct Identification, Substitution, and Rejected Merchandise. We will explore all avenues to reach max refund potential.
- Automated Data Review: Integration with TrakIt and other digital tools for accuracy.
- Audit Support: Full documentation and representation for CBP.
Types of Duty Drawback
Manufacturing Drawback:
The same logic of substitutions applies to manufactured goods. If a company uses an imported good to manufacture a product that’s subsequently exported or destroyed, they maybe eligible for manufacturing drawback at the time of export or destruction, based on the duties paid per each component used in/appearing in the end product.
Rejected Merchandise Drawback:
Imports that fail to meet quality standards or are shipped without the consignee’s consent maybe eligible for rejected merchandise drawbacks.
This protects importers from paying duties on defective, damaged, or unauthorized goods. Like the other types of drawback, companies can either re-export the rejected merchandise or destroy it under U.S. Customs and Border Protection supervision.
Unused Merchandise Drawback:
When a company exports a good in essentially the same condition in which it was imported, that good could qualify as unused merchandise, making it eligible for a duty drawback claim. Companies can make modifications (such as painting, cleaning, repacking, kitting), but to receive the drawback they can’t use the merchandise for its intended purpose before exporting it.
Under duty drawback rules, companies can also destroy unused merchandise under the supervision of U.S. Customs and Border Protection. As long as the merchandise is destroyed in compliance with U.S. Customs and Border Protection rules, the destroyed merchandise is eligible for the same unused merchandise drawback
Companies may also be able to substitute similar goods that share the same 8-digit HTS code. This means the goods they export or destroy aren’t required to be the exact objects they imported but can be equivalent substitutions. There are some restrictions to this, and with over 11,000 HTS numbers to distinguish between, and some with lengthy descriptions, a duty drawback service can be invaluable in navigating this complexity.
The History of Duty Drawback
The first major piece of legislation in the United States was the Tariff Act of 1789. This act established duties on imported goods. In 2022 alone, U.S. Customs and Border Protection collected over $111 billion in duties, taxes, and fees. Duty Drawback is an export incentive program to refund the Duties, Taxes, and Fees of your imported merchandise upon exportation or destruction for an article that was exported/destroyed if it were Unused or used in the Manufacture of your exported/destroyed merchandise.
Understanding Duty Drawback
Duty Drawback allows importers to recover up to 99% of customs duties, taxes, and fees paid on imported goods that are later exported, destroyed, or returned. LOGISTEED America simplifies this complex process through end-to-end management, helping your business reclaim eligible refunds quickly, accurately, and in full compliance with U.S. Customs regulations.
Our Expertise in Refund Management
Our Customs Brokerage team combines decades of trade experience with data-driven precision to streamline your Duty Drawback claims. From identifying eligible entries to maintaining full audit-ready documentation, we handle every detail — including direct identification, substitution, and manufacturing drawback programs — so you can focus on what’s next, not what’s owed.
Why Choose LOGISTEED America
We go beyond traditional brokerage. Our integrated global network connects Customs expertise with logistics execution, giving you a clear advantage in compliance and refund recovery. With transparent communication, advanced tracking through TrakIt, and dedicated drawback specialists, LOGISTEED America ensures your claims are filed correctly and refunded faster.
Who Benefits from Duty Drawback
Any business that imports and later exports, destroys, or re-uses goods may be eligible for Duty Drawback refunds. This includes manufacturers, distributors, and global brands managing returns or overstock. Whether you ship components abroad or handle re-exports through multiple ports, our specialists help uncover refund opportunities hidden in your supply chain.
ACE Access Required
Access to the CBP ACE Portal is required to utilize Duty Drawback, and LOGISTEED is happy to help you understand that access. You can learn more about it directly from the CBP website.
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