What is duty drawback in plain terms?
Duty drawback is a U.S. Customs programme that can refund certain duties, taxes and fees paid on imported merchandise when that merchandise — or, in some cases, a substituted equivalent — is subsequently exported or destroyed. Eligibility and timeframes are set in law and regulation, so verify the current rules.
Written by Raja Torain. Published 2026-08-20, last reviewed 2026-08-26.
The programme is administered by U.S. Customs and Border Protection. Eligibility, timeframes and the categories of refundable duty are defined in law and regulation, and they change; verify current rules rather than relying on any summary, including this one.
The practical question is never only 'are we eligible'. It is 'can we prove it with the records we already keep'.
In practice
Exposure is usually found while reviewing something else, such as an FTZ feasibility question or a landed-cost model. Educational only: eligibility and filing belong with a licensed customs broker.
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Educational boundary. Educational only. This explains how the programme works, what records and internal controls it requires, and what a company needs in place to build self-filing capability. It is not customs, legal or tax advice, it is not a filing service, and it is not the work of a licensed customs broker. Confirm your own facts with CBP guidance and a licensed professional before acting.
Authoritative sources
Source links verified 2026-08-26.