Imported it, paid duty, then shipped it out of the U.S. unused? Up to 99% of that duty can come back.
Unused merchandise drawback refunds up to 99% of the duties, taxes and fees paid on imported goods that are later exported or destroyed without being used in the United States. It is set out in 19 U.S.C. 1313(j).
There are two kinds: direct identification, where you export the exact goods you imported, and substitution, where you export goods with the same 8-digit tariff code.
You have five years from the date of import to export the goods and file the claim with CBP.
Plenty of U.S. importers move goods back out of the country. A brand ships orders from its U.S. warehouse to buyers in Europe. A distributor sends overstock back to the factory. A retailer moves inventory to a fulfilment centre in Canada.
Each time, U.S. duty was paid on goods that were never sold or used in the U.S. Unused merchandise drawback is how you get it back.
Export goods you imported into the U.S.?
Drawback is a refund of duties paid on imports. The U.S. program dates back to 1789 and is run by U.S. Customs and Border Protection (CBP). The Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) modernized the rules, and the current regulations are in 19 CFR Part 190.
Unused merchandise drawback covers goods that are exported or destroyed without being used in the U.S. It is the most common claim type for retailers, ecommerce brands and distributors.
| Direct identification 1313(j)(1) | Substitution 1313(j)(2) | |
|---|---|---|
| What you export | The same goods you imported | Goods with the same 8-digit HTS code |
| Tracking needed | Link each export to its import | Match by tariff code, not by unit |
| Refund | Up to 99% of duties paid | Up to 99% of the lesser of import duty or the duty on the exported goods |
| Exports to Canada or Mexico | Allowed | Not allowed under USMCA |
You export or destroy the exact goods you imported. This is the simplest claim, but you need records that tie each export back to a specific import entry, usually by SKU, lot or serial number.
You do not need to export the same units. You can claim duty on imports when you export goods that are classified under the same 8-digit HTS code, even if they came from a different shipment or were made in the U.S. If the 8-digit code begins with “other”, the match is made at 10 digits.
The substituted goods must be in your possession before export. Substitution is powerful for high-volume sellers because it removes the need for unit-level tracking.
The goods must not be used in the U.S. before export or destruction. Operations that do not amount to manufacturing are allowed, such as:
Goods that have been put into service, rented, or sold to a U.S. customer and returned after use do not qualify as unused. Goods returned because they were defective or did not match the order may qualify under rejected merchandise drawback instead.
Goods do not have to leave the country. Unused imports that are destroyed under CBP supervision within five years of import can also qualify. Any value recovered from the destruction, such as scrap, is deducted from the refund. CBP must be notified before destruction so it can choose to witness it.
Drawback refunds up to 99% of eligible duties, taxes and fees. The tariff landscape changed a lot in 2025 and 2026, so it matters which charges you paid.
| Charge | Drawback? |
|---|---|
| Regular (MFN) duties | Yes |
| Merchandise and harbor maintenance fees (MPF, HMF) | Yes |
| Section 301 duties (for example, on Chinese goods) | Generally yes |
| Section 232 duties on steel, aluminum and their derivatives | No, the 2025 proclamations bar drawback |
| Antidumping and countervailing duties | No |
| IEEPA tariffs (2025 to Feb 2026) | Not through drawback. Recovered through CBP's IEEPA refund process |
In February 2026 the Supreme Court ruled that IEEPA did not authorize tariffs. Those duties are being refunded through a separate CBP process, not drawback. Tariffs introduced since then, including the Section 122 surcharge and the 2026 Section 301 measures, need to be checked against the terms of each proclamation. We check every charge on your entries before building a claim.
A U.S. home goods brand imports $1,000,000 of product from Vietnam a year and pays an average of 14% in duties and fees, or $140,000.
About 20% of its units ship from its New Jersey warehouse to customers in the UK, Europe and Australia.
Because the goods are exported to non-USMCA countries, the brand can use substitution and match by tariff code instead of tracing every unit.
Example figures are simplified for illustration. Actual refunds depend on classification, the charges paid and the records available.
USMCA changes the rules for goods sent from the U.S. to Canada or Mexico:
If you ship a lot to Canada, unit-level tracking matters. Brands that sell into both countries may also have a refund on the Canadian side. See our Canadian export drawback page.
Goods must be exported or destroyed within five years of the import date, and the claim must be filed within that same five-year period. Claims are filed electronically in CBP's ACE system.
With a drawback bond and CBP approval, claimants can use accelerated payment and receive refunds before CBP finishes reviewing the claim. Without it, refunds are paid after the claim liquidates.
IEEPA tariffs and most Section 232 duties do not. Mixing them into a claim causes rejections.
USMCA bars it. Only direct identification works for Canada and Mexico.
Parcel exports often lack EEI filings. Carrier data can fill the gap, but it has to be collected.
The clock runs from the import date. The oldest entries expire first.
We review your entries charge by charge, separate what is drawback-eligible from what is not, choose between direct identification and substitution, and manage the claim with our licensed U.S. drawback partners. No upfront cost. We are paid a percentage of what we recover.
Up to 99% of eligible duties, taxes and fees paid on the imported goods.
Five years from the date of import, for both the export and the claim.
No. Under substitution drawback, goods with the same 8-digit HTS code can be used, except for exports to Canada and Mexico.
No. After the Supreme Court's February 2026 ruling, IEEPA duties are refunded through a separate CBP process, not drawback.
Generally yes, through drawback, when the goods are exported or destroyed unused.
No. The 2025 Section 232 proclamations state that no drawback is available on those duties.
Yes, if they are unused and destroyed under CBP supervision within five years of import.
Nothing upfront. Drawback Hero works on contingency.
This page provides general information and is not legal, tax or customs advice. Sources: 19 U.S.C. 1313(j), 19 CFR Part 190, the February 2025 Section 232 proclamations, and Learning Resources, Inc. v. Trump (U.S. Supreme Court, February 20, 2026). Tariff rules changed often in 2025 and 2026; eligibility depends on the charges paid and the rules in effect at the time.
Enter your annual duties and the share you export. Get an instant estimate, then let us handle the claim.
Estimate My Refund →