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.
Tools and hardware imported under HTS Chapter 82 typically carry lower duty rates than consumer goods (3 to 5 percent), but the volume imported is enormous. Many tools and hardware importers export significant quantities or destroy damaged inventory without realizing they have refundable duties under the drawback statute.
Hand tools, power tools, hardware fasteners, and related items under HTS 82 generally carry ad valorem duties ranging from 2 to 4 percent, with some specific items higher. While lower than consumer goods categories, the sheer volume of tools and hardware imports into the US creates a substantial opportunity for drawback recovery.
If you import tools and hardware and export to Canada, Mexico, the EU, or international distributors, or if you destroy defective or damaged inventory, you have refundable duties from the past five years under 19 U.S.C. 1313.
An importer enters $3 million annually in hand tools and hardware at an average 3.5 percent duty rate. Fifteen percent of inventory is exported to Canadian and Mexican distributors. The 5-year lookback estimate: approximately $77,962.50 in refundable duties. This assumes consistent patterns and eligible duties.
You are eligible if you: (1) import tools and hardware and export to distributors or retailers; (2) import and sell on Amazon or other international channels; (3) distribute to retail chains that re-export; or (4) destroy damaged or defective inventory as waste.
Tools distributors and hardware retailers are common candidates. Many do not pursue drawback because the per-unit refund is small compared to consumer goods, yet the aggregate over five years is substantial.
Section 301 tariffs on tools from China are lower than on consumer goods (approximately 7.5 percent on certain tools), but still refundable on the same basis as base duties when tools are exported.
Your customs broker will need import entries from CBP, evidence of export (bills of lading, invoices to export customers, Amazon international fulfillment records), or destruction records. Tools and hardware are frequently matched by SKU or HTS code to export invoices. Most tools importers have this documentation in their supply chain.
Calculate your tools and hardware 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.