10 Common Duty Drawback Challenges and How to Overcome Them

For companies involved in global trade, duty drawback can be a complex endeavor—but it doesn’t have to be. Understanding common duty drawback challenges and their solutions can help you optimize your import/export operations and reclaim significant refunds on overpaid duties. Below, we break down 10 of the most common challenges and actionable strategies to overcome them.

1. Frequent Tariff Changes

The constantly shifting landscape of tariff regulations—like the adjustments introduced in 2025—adds additional complexity to duty drawback claims. Companies often face uncertainty about which duties are recoverable and under what circumstances.

Solution: Partner with a drawback broker, like Comstock, who stays ahead of tariff updates and proactively adjusts your strategy to ensure compliance and ongoing eligibility.

2. Complex Eligibility

Many businesses struggle to determine whether their goods qualify for duty drawback, especially when dealing with returned products, blended inventory, or multi-stage manufacturing processes.

Solution: Collaborate with an experienced drawback expert to conduct a thorough assessment of your supply chain and product lifecycle. This will help clarify eligibility based on CBP’s criteria.

3. Meticulous Record-Keeping

Duty drawback claims require precise documentation that links imports directly to exports. However, many companies underestimate the level of detail and consistency required for their records.

Solution: Streamline your operations with centralized systems and clearly defined Standard Operating Procedures (SOPs) to capture essential documents—like entry summaries and proof of export—right at the source.

4. Documentation Gaps

Even a single missing document, such as a Bill of Lading or export invoice, can derail your entire claim. The burden of proof is on the claimant, making flawless documentation critical.

Solution: Develop an internal documentation checklist and automate processes where possible. Cloud-based tools can improve organization and retrieval, ensuring your team is always prepared.

5. Data Fragmentation

With import, export, and inventory data often siloed across separate systems or departments, building a complete drawback claim can become challenging.

Solution: Integrate platforms or establish a centralized database specifically for drawback-related data. Foster collaboration between departments and schedule routine data reviews to ensure accuracy and cohesion.

6. Lack of Real-Time Visibility

When companies lack visibility into shipment status and required documentation, they risk missing filing deadlines or failing to comply with regulations altogether.

Solution: Invest in supply chain visibility tools to monitor shipments and validate documentation in real-time. This keeps your claims on track and reduces the risk of errors.

7. Inefficient Processes

Manual data entry, outdated systems, and disjointed operations contribute to delays and increase error rates, often leading to claim denials.

Solution: Modernize your approach by automating repetitive tasks. Tools like barcode scanning, digital filing systems, and ERP integrations can significantly streamline operations.

8. Missed Filing Deadlines

While CBP allows five years from the date of import to file a claim, busy organizations frequently miss this window due to competing priorities.

Solution: Establish a rolling calendar that tracks eligible entries and their deadlines. Set up checkpoints and reminders to ensure claims are submitted well in advance.

9. Misuse of Drawback Types

Filing under the incorrect drawback type can result in claim denial.

Solution: Educate your team on the nuances of drawback filing. Alternatively, work with a partner who has a deep understanding of all drawback types and ensures accurate categorization.

10. Insufficient Resources

Small and mid-sized businesses often lack the tools, time, or expertise necessary for effective tax return filing, resulting in missed opportunities and unclaimed refunds.

Solution: Outsource the process to specialists like Comstock. With dedicated support, compliance expertise, and end-to-end claim management, an experienced firm can help businesses maximize refunds without overwhelming internal teams.

Partner With Comstock

Duty drawback should be more than just a compliance checkpoint—it can serve as a powerful strategic advantage for your business. At Comstock, we’ve been helping companies recover millions in overpaid duties for more than 165 years. Our dedicated team simplifies the entire process, from eligibility assessment to filing and beyond, allowing you to focus on your business while we optimize your claims. Partner with our team today and transform duty drawback from a compliance burden into a competitive edge.