US Drawback Feasibility Estimator
Estimate potential 99% duty refunds for exported or destroyed US imports under 19 U.S.C. § 1313.
The 99% Rule & TFTEA
Per US law, CBP retains 1% of the duties/fees as an administrative charge. The importer recovers 99% of the qualified amounts paid.
19 U.S.C. § 1313 Citation
"Modernized drawback under TFTEA (Trade Facilitation and Trade Enforcement Act) allows for 8-digit HTS substitution."
Indicative calculation for planning only. Verify against the applicable CBP notification in force on your shipment date before filing or contracting.
Estimated net refund (99% of eligible duty and MPF)
Impact Summary
Recovery of $0 represents a 99% return on qualified payments. CBP retention of 1% is $0 per 19 U.S.C. § 1313.
Time Limits
- Claims must be filed within 5 years of the date of import.
- Proof of exportation (B/L, AWB) is mandatory for unused drawback.
- Substitution drawback allows for using matching commercial inventory.
Need help interpreting this result?
Ask Trade Expert AI how it applies to your transaction. Free with an account.
Overview & methodology
Types of Drawback Recovery
The two most common forms are Unused Merchandise Drawback (exporting the goods in the same condition as imported) and Manufacturing Drawback (using imported inputs to create a new product for export). Under TFTEA modernization, importers can use "substitution" to claim refunds based on 8-digit HTS codes rather than tracking specific physical units.
Numerical Example: China Tariff Recovery Estimate (Section 301)
MPF paid on the entry is also refundable at 99%. The Harbor Maintenance Fee and any Section 232 duty are not, so leave them out of the refund.
Related tools: US HTS, Import Duty Calculator.
Method note: calculations run in your browser using the formulas and published rule books cited on this page. Results are free estimates for planning, with no login required, and should be confirmed with your bank, broker or the official source before you commit.
Frequently asked questions
What is US duty drawback?
US duty drawback is a refund of 99% of eligible duties, taxes and fees paid on imported merchandise that is later exported or destroyed. Section 232 duties, the Harbor Maintenance Fee and AD/CVD are not refundable. Governed by 19 U.S.C. § 1313, it allows importers/exporters to recover duties on inputs used to manufacture exported goods.
What types of drawback are available?
Unused merchandise drawback (goods exported unused), manufacturing drawback (imported inputs used to make exported goods), and substitution drawback (exports of goods in the same 8-digit HTS subheading). Since TFTEA all three refund 99% of eligible amounts. Each has different documentation requirements.
How long do I have to claim drawback?
Under TFTEA (19 U.S.C. 1313(r)), a drawback claim must be filed within 5 years of the date the merchandise was imported. Late claims are rejected. Keep records of imports, production and exports.