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 certain tools and hardware from China are refundable under the drawback statute. While Section 301 rates on tools (approximately 7.5 percent) are lower than on consumer goods like apparel or footwear, the absolute dollar amounts are still significant given the high volume of tools imports from China.
Section 301 tariffs on selected tools and hardware categories from China average approximately 7.5 percent, with some categories higher. Combined with base tool duties (3 to 4 percent), this creates an effective duty rate of 10 to 11 percent on many imported tools. On a $3 million annual import volume, this translates to approximately $300,000 to $330,000 in total annual duties.
Section 301 comprises a growing share of total duty burden on tools because base rates are low. For tools importers sourcing from China, Section 301 often represents 60 to 70 percent of total duties collected.
A tools importer enters $3 million annually from China at a combined rate of 10.5 percent (3.5 percent base plus 7 percent Section 301). Fifteen percent is exported over 5 years. The total estimated refund is approximately $233,887.50. Section 301 accounts for approximately $155,925 of that refund.
Section 301 duties on tools are refundable when the tools are exported or destroyed, exactly like base duties. Your broker includes Section 301 amounts from your CBP import entries in the same claim package. No separate documentation or process is required.
Tools that are imported and then re-exported to customer facilities, or shipped to distributors that export further, generate substantial Section 301 refund opportunities. If your supply chain includes any export component, Section 301 refunds are available.
Calculate your Section 301 tools refund.
Free EstimatorDrawbackIQ prepares claim packages for a licensed customs broker to file. DrawbackIQ is not a customs broker. This page is informational only.