Duty drawback is one of the most underused refund mechanisms available to US importers. The program lets you reclaim 99% of duties paid on imported goods that are subsequently exported — a meaningful amount for any ecommerce brand that imports inventory to a US warehouse and ships internationally.
This calculator estimates annual recoverable duty: total imports × duty rate × export percentage × 0.99 (CBP keeps 1% admin fee). For a brand importing $1M at 12% average duty rate and shipping 25% internationally, that\'s roughly $29.7K of drawback opportunity per year. Most operators don\'t file because documentation feels intimidating, but for any brand with $500K+ annual imports the math justifies hiring a drawback specialist.
The strategic recommendation: if you\'re above $250K annual import value and shipping 15%+ to international customers, file drawback claims quarterly. Use a specialist (typically 10-15% of recovered amount) for first-year filings; transition to in-house once your team understands the documentation process. The cash recovered is essentially free — you\'ve already paid the duty; drawback just unwinds it.
Pair with the Customs & Duties calculator (the import-side cost), Customs Broker Cost calculator (related broker decision), and International Shipping Cost calculator (full cross-border economics). Most successful global DTC brands treat drawback as an operational priority once they exceed $1M imports — the recovery typically funds 1-2 months of working capital each quarter.
Frequently asked questions
What is duty drawback?
A US Customs program that lets you reclaim 99% of duties paid on imported goods that are subsequently exported (or destroyed under customs supervision). Designed to make US manufacturers competitive globally — but ecommerce sellers who import then re-export to international customers also qualify.
Who qualifies for drawback?
Any importer whose goods are exported within 5 years of import. Most common ecommerce scenario: import to US warehouse, fulfill US orders, ship some inventory to EU/CA/AU customers. Those international shipments qualify for drawback on the duties originally paid.
How much can I recover?
99% of duties paid (US Customs keeps 1% admin fee). For a brand importing $1M of goods at 12% average duty rate ($120K paid), exporting 25% internationally = $30K drawback opportunity per year. Worth the filing complexity for most brands above $500K/year imports.
How do I file?
Through a customs broker or drawback specialist. Filing requires: import documentation, export proof (commercial invoice + bill of lading), inventory records linking export to specific import. Most operators use a drawback specialist (10-15% of recovered amount) — DIY filing is possible but documentation-heavy.
What's the typical timeline?
4-12 months from filing to receiving refund. CBP processes claims in batches; first-time filers wait longer than repeat filers. File quarterly to keep cash cycle manageable. Some specialist firms offer "drawback advance" — they pay you immediately at 80-85% of expected refund and collect when CBP pays.