Duty Drawback Guide

Yes, Section 301 duties are eligible for drawback. Other eligible duties include, but are not limited to, Merchandise processing fees (MPF) and Harbor maintenance taxes (HMF).

You could technically file for Duty Drawback to get a refund of any duty paid, even as low as $20. However, there’s a substantial amount of setup, systems integration, permission from Customs and work that goes into filing for Duty Drawback. Because of that, we generally recommend pursuing drawback if you expect at least $100,000 of refunded duties per year. This amount of duty refund helps ensure a good return on investment for the time you’ll need to put into getting everything set up.

Yes, depending on the type of drawback you qualify for, there are various applications and rulings that you may be required to file to qualify. These rulings and applications are subject to approval by US Customs and Border Protection (CBP).

Yes, you may file drawback claims pending approval of the required applications or rulings.  However, CBP won’t process or pay those drawback claims until the required applications or rulings are approved.

Yes, you may qualify for drawback on import and export transactions that already occurred over the past five years. You can file a drawback claim today for goods that were imported five years ago and exported after the import date.

We’ve seen clients receive their first refund within six months of first contacting UPS Trade Advisory Services. However, the majority of our clients receive their first refund about twelve months after first contacting us. Now, there’s a lot of variability in time – some controllable and some not. The main variable is how long it takes to get our systems to talk to your systems, having a dedicated information technology team can expedite this process. Drawback, however, does require approvals from the government, and those timelines are less controllable.

In many cases, you can still receive Duty Drawback even if you are not importing and exporting. For example, if you buy imported products from a US vendor, then export those goods, UPS Trade Advisory Services can work with you and your vendor to set up an agreement to claim Duty Drawback. There’s often concerns about confidential data (cost data, etc.). We’ve navigated this before and can act as the intermediary to keep confidential information safe. In the end, everybody can win as the Duty Drawback is claimed and divided up between the parties without any trade secrets being shared.

Yes, but with some additional requirements. For this to be a viable option for a customer, UPS Trade Advisory Services must be engaged prior to the export of the planned shipment (or the destruction of the goods.) Due to the inherent complexities of this type of drawback, it is generally not an ideal option for lower value shipments.