Please read: this guide is general information, not legal or customs advice, and rates and examples are illustrative. Drawback claims must be completed within 5 years of the date of importation (19 U.S.C. 1313(r)). Destruction claims require destruction under CBP supervision with advance notice, and DrawbackIQ currently prepares unused-merchandise export claims only. Your licensed customs broker decides what can be filed.
If you import apparel under HTS Chapters 61 or 62, you are subject to some of the highest duty rates in US trade. Yet the refund program for exported or destroyed apparel remains largely unknown. Apparel importers are leaving hundreds of thousands of dollars in refundable duties unclaimed.
Apparel imported under HTS 61 (knitted apparel) and HTS 62 (woven apparel) typically carries ad valorem duties ranging from 14 to 18 percent, depending on fiber content and country of origin. Section 301 tariffs (typically 7.5 percent to 25 percent depending on the product list) can add to that on apparel from China. This can create a total effective duty rate above 20 percent, making apparel an unusually high-margin recovery opportunity for drawback.
Apparel importers who export to Canada, Mexico, the EU, or sell on international marketplaces, or who destroy returned inventory, have refundable duties from the past five years under 19 U.S.C. 1313. The statute allows refund of up to 99 percent of these duties.
An apparel brand imports $1.5 million annually under HTS 61/62 at an average 16 percent duty rate. Twenty-five percent of inventory is exported through international marketplaces and direct-to-consumer stores. The 5-year lookback estimate: approximately $297,000 in refundable duties. This assumes consistent import patterns and eligible duty types.
You are eligible if you: (1) import apparel and later export it; (2) import and sell on Amazon.ca, Amazon.co.uk, Amazon.de, or other international channels; (3) operate a Shopify store shipping apparel worldwide; (4) distribute to retail chains that re-export; or (5) destroy returned inventory as waste.
The most common scenario for US apparel brands is export: most growing apparel companies eventually sell internationally, and those sales are all eligible for drawback.
Section 301 tariffs on Chinese apparel are typically 7.5 percent to 25 percent on top of base duties. If your apparel sourcing includes China, Section 301 is a major component of your refundable amount. The statute includes Section 301 duties explicitly in the refundable categories, so your broker includes them in the same claim as base duties.
Apparel is frequently matched by SKU (direct identification) if your supply chain tracks SKUs through import and export. Substitution matching (on HTS code prefix) is also available for apparel. Most apparel importers will have both types of matches in their claim.
Your broker will need import entries from CBP and export proof (bills of lading, commercial invoices, Amazon fulfillment records showing international orders, or retail customer invoices for exported goods). Most apparel importers have this documentation in their supply chain; we help organize it into a claim package.
Calculate your apparel refund potential.
Free EstimatorDrawbackIQ prepares claim packages for a licensed customs broker to file. DrawbackIQ is not a customs broker. This page is informational only. Consult your broker or customs attorney for advice specific to your apparel imports.