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.
Yes. Section 301 tariffs on apparel imported from China are eligible for drawback under 19 U.S.C. 1313. This is a major opportunity for apparel importers because Section 301 duties on apparel from China (typically 7.5 percent to 25 percent) can be a large share of total duties. For importers sourcing from China, Section 301 often exceeds base duties in absolute dollars.
The Section 301 tariff on Chinese apparel is typically 7.5 percent (List 4A) and up to 25 percent on some products. Combined with base apparel duties (14 to 18 percent), this can create total effective duty rates of roughly 21 to 25 percent or more. On a $1.5 million annual import volume at 7.5 percent Section 301, the Section 301 component alone is roughly $112,500 per year.
Over the 5-year lookback window, Section 301 refunds on apparel can easily exceed $500,000 for mid-sized importers. This is among the highest refund opportunities in any product category.
An apparel importer enters $1.5 million annually from China at a combined rate of 23.5 percent (16 percent base plus 7.5 percent Section 301). Twenty-five percent is exported over 5 years. The total estimated refund is approximately $436,200 (all duties); Section 301 alone accounts for approximately $139,200 of that amount. Illustrative only.
The drawback statute (19 U.S.C. 1313) explicitly includes Section 301 duties as refundable. There is no separate rate or process. Your broker includes Section 301 amounts in the claim package on the same line item basis as base duties. CBP refunds them as part of the same payment.
Apparel sourcing from China has been subject to Section 301 tariffs since July 2018. This is now over five years of duty accumulation. If you have been importing apparel from China during this period, you have substantial refundable Section 301 duties waiting to be claimed.
Your customs broker will include Section 301 duty amounts from your CBP import entries. The rest of the claim (export proof, matching, etc.) is the same as any drawback claim. No additional documentation is required beyond what you already have in your supply chain.
Calculate your Section 301 apparel refund.
Free EstimatorDrawbackIQ prepares claim packages for a licensed customs broker to file. DrawbackIQ is not a customs broker. This page is informational only.