Planning
What affects your refund
Duty drawback can refund part of the duties you paid on goods you later exported unused. Whether it does, and how much, depends on the factors below. Your records decide them, not a formula.
Whether an export matches an import
Drawback needs a specific export to be tied to a specific import. Under direct identification the goods must be the same article, shown by SKU. Under substitution they must be classified in the same HTS subheading, with extra conditions where the subheading is a residual "Other".
Prior notice or a waiver
For unused merchandise, a Notice of Intent to Export (CBP Form 7553) must be filed at least 5 working days before export, unless CBP approves another period or you hold a waiver of prior notice (19 CFR 190.35, 190.91). If goods were exported without either, you can apply to CBP once under 19 CFR 190.36. CBP can deny the application, and claims are not paid until it is approved.
Five years from importation
A complete drawback claim must be filed within 5 years of the date the goods were imported (19 U.S.C. 1313(r)(1); 19 CFR 190.51(e)). Extensions are available only if CBP caused the late filing or after a declared major disaster, so plan on none. Older imports drop out first.
Which duties you paid
Base duty, Section 301 duty, the Section 122 surcharge, and the merchandise processing fee and Harbor Maintenance Tax are treated as eligible. Section 232 duty depends on the product: most Section 232 programs bar unused merchandise drawback, a few allow it. The software does not count it. IEEPA duties are not refunded through drawback. Antidumping and countervailing duties are never refundable by drawback.
What you exported the goods for, and to where
The goods must be exported unused. Substitution is not available for exports to Canada, Mexico or Chile, and exports to Canada and Mexico must be claimed separately.
Export value against import value
For substitution, the refund is limited to the lesser of the duty on the import and the duty the exported goods would bear. Goods exported at a lower value than they were entered can support a smaller refund.
IEEPA refunds
The entry paid IEEPA duties. CBP's CAPE refund process currently rejects entries that are designated on a drawback claim (CBP says it is evaluating them for a later release) and encourages filing the CAPE Declaration before the drawback claim. If you want the IEEPA refund, file CAPE first and wait until the entry is in liquidation or reliquidation status before your broker files drawback on it.
Proof, claimant and records
CBP has requirements for proof of export and for who may claim. Missing proof or the wrong claimant can sink a claim that matched on paper.
The 99 percent ceiling
Drawback refunds up to 99 percent of eligible duties, taxes and fees. That is the most the statute allows, not a typical outcome.
Costs and timing outside your control
Your broker charges to prepare and file. Accelerated payment can require a bond. CBP decides when and whether to pay, and can audit. DrawbackIQ cannot predict any of these.
Run your own records through it
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