As a general rule, a drawback entry must be filed no later than five years after the date the merchandise on which drawback is claimed was imported.

That five-year filing window can allow companies to evaluate prior import and export activity when establishing a new drawback program. However, the underlying transaction must also satisfy the requirements of the specific drawback provision being used, including any applicable rules governing exportation, destruction, manufacture, or use.

Companies that have not previously claimed drawback should evaluate historical import and export data as soon as possible because older import entries continue to age out of the filing window.

For many drawback claims, the maximum refund is generally 99% of the eligible duties, taxes, and fees paid on the imported merchandise, subject to the rules and limitations that apply to the specific type of claim.

For substitution claims and certain other transactions, the allowable refund may be limited by additional calculation rules. Special rules can also apply to particular products, trade programs, or destinations.

The recoverable amount should therefore be calculated using the facts of the specific import and export activity rather than assuming every transaction will produce the same refund percentage.

Duty drawback allows eligible companies to recover certain U.S. duties, taxes, and fees paid on imported merchandise when qualifying merchandise or articles are subsequently exported or destroyed under applicable CBP requirements.

Today’s drawback program operates primarily under 19 U.S.C. § 1313 and 19 CFR Part 190. The current framework includes electronic drawback filing, a general five-year claim period measured from importation, and modern substitution rules that can allow qualifying claims based on merchandise classified under the same 8-digit HTSUS subheading, subject to the requirements of the applicable drawback provision.

Because eligibility and calculation rules vary by claim type, each drawback program should be evaluated based on the company’s imports, exports, manufacturing activity, and available records.

Potentially, yes. A company does not always have to be the original importer to benefit from duty drawback. If a supplier imported the merchandise, the downstream claimant may be able to use that importation when the required drawback rights are properly transferred and the necessary supporting information is available.

The documentation generally must establish the relationship between the imported merchandise and the merchandise transferred to the claimant, together with the relevant import data needed to support the drawback claim. The exact information required depends on the type of drawback being claimed.

Comstock & Holt can review the available supplier and import records to determine whether those purchases can support a drawback program.

Yes, certain exports to Canada or Mexico can qualify for duty drawback, but special USMCA rules apply and can limit the amount recoverable or the type of drawback that is available.

For some claims, the drawback amount is limited by comparing the customs duties paid in the United States with the customs duties paid when the goods enter Canada or Mexico. Certain categories of goods and transactions may qualify for full drawback, while unused-merchandise substitution drawback is generally not payable on goods exported to Canada or Mexico under the applicable USMCA rules.

Because the result depends on the type of drawback claim and the specific Canada or Mexico transaction, these exports should be reviewed individually before the expected recovery is calculated.

CBP requires a drawback claim to establish the date and fact of exportation and the identity of the exporter. The export information generally includes the export date, exporter name, description of the goods, quantity and unit of measure, Schedule B or HTSUS number, and country of ultimate destination.

Supporting evidence may include carrier records such as bills of lading or air waybills, records from approved U.S. Government electronic export systems, postal records, and other records maintained in the ordinary course of business.

The goal is to maintain a clear, supportable record connecting the claimed export activity to the drawback transaction.