China Tariffs Duty Drawback Recover What You Paid

Yes. Section 301 tariffs on Chinese imports are eligible for duty drawback under U.S. CBP rules. This means if you re-export goods that were imported with Section 301 duties paid, use them in manufacturing for export, or meet other qualifying conditions, you can recover up to 99% of those duties. CBP guidance has confirmed that Section 301 duties qualify, making drawback one of the most effective tools for recovering China tariff costs.

Yes. CBP has confirmed that duty drawback is available with respect to the reciprocal tariffs, including the 125% tariffs in effect as of early 2025. However, not all China-related tariffs are eligible — the 20% tariff applied for fentanyl-related reasons is excluded from drawback. It is important to screen each tariff category individually before filing a claim.

Several drawback types can apply depending on how you use the imported goods. Manufacturing drawback applies when imported materials are used to produce finished goods that are then exported. Unused merchandise drawback applies when imported goods are re-exported in the same condition. Rejected merchandise drawback applies when goods are returned as defective or non-conforming. Each type has specific eligibility requirements and documentation standards under CBP regulations.

With traditional providers using manual workflows, the process typically takes 9–12 months from document collection to refund receipt. Zollback's automated platform compresses this to 10–15 working days by using AI to parse documents and proprietary algorithms to compute optimal import-export matches electronically, then filing directly with CBP via certified ABI software.

A complete drawback claim typically requires import entry summaries, commercial invoices, bills of lading, proof of export, and in manufacturing cases, production records linking imported materials to exported finished goods. The exact documentation depends on the drawback type being claimed. Zollback's platform accepts these documents in PDF, CSV, or ERP export formats and processes them automatically without manual data entry.

CBP allows recovery of up to 99% of the regular duty paid on eligible imports — the 1% retention is a standard regulatory requirement. For China tariffs specifically, this means a meaningful portion of Section 301 duties and the 125% reciprocal tariff can be recovered if qualifying export or manufacturing activity exists. The exact amount depends on your import-export volumes, matching methodology, and drawback type used.