Customs Refund Recovery Automated by AI

A customs refund is a recovery of import duties paid to U.S. Customs and Border Protection. The primary mechanism is duty drawback — a U.S. government program that refunds up to 99% of duties when imported goods are subsequently re-exported, used in manufacturing finished goods for export, or destroyed under CBP supervision. Importers qualify based on their trade activity across these categories. Roughly 80% of eligible refunds go unclaimed each year, often because companies are unaware they qualify.

Duty drawback is a formal U.S. government program under 19 U.S.C. § 1313 that allows importers to recover up to 99% of duties paid on imported goods that are later exported or destroyed. It is the most significant customs refund mechanism available to U.S. importers. Other refund types include ACH refunds for excess deposits under 19 CFR § 24.36, but drawback covers far broader activity — manufacturing, re-exports, and destruction — and typically yields much larger recoveries.

With traditional drawback providers relying on manual workflows, the process typically takes 9–12 months from initial document collection to refund receipt. Zollback's AI-powered platform compresses this to 10–15 working days by automating document parsing, eligibility screening, refund optimization, and electronic CBP filing end-to-end. Processing time varies based on claim complexity and CBP review timelines.

Four primary drawback categories exist: manufacturing drawback (raw materials imported and used to produce finished goods that are exported), unused merchandise drawback (imported goods re-exported in the same condition), rejected merchandise drawback (defective or non-conforming imports returned to the supplier), and destroyed goods drawback (imported goods destroyed under CBP supervision). Many importers qualify under multiple categories simultaneously.

Under the duty drawback program, eligible importers can recover up to 99% of the import duties, taxes, and fees originally paid. The exact amount depends on which drawback type applies, how import and export records are matched, and which accounting method is used. Algorithmic optimization of import-export matching — the approach Zollback uses — can yield 15–20% more in recovered duties compared to manual matching methods.

Zollback operates on performance-based pricing with no upfront fees. You pay nothing until a refund is deposited into your account — at which point Zollback takes a percentage of the recovered amount. This fully aligns incentives: Zollback only earns when you do. Traditional providers may charge retainers or flat fees regardless of recovery outcome.