Duty Drawback for Freight Forwarders Add Revenue Without the Overhead

Duty drawback is a U.S. government program that refunds import duties when goods are subsequently re-exported, used in manufacturing for export, or destroyed. Freight forwarders are well-positioned to offer drawback as a value-added service because they already manage the trade data — bills of lading, customs declarations, and shipping records — needed to support claims. Rather than building this capability in-house, forwarders can partner with a specialist like Zollback to deliver the service without any additional infrastructure.

Yes. Freight forwarders can offer duty drawback to clients through a partnership model. Rather than becoming licensed customs brokers themselves, forwarders work with a certified drawback provider that handles eligibility assessment, claim optimization, compliance review, and CBP filing. The forwarder stays client-facing and earns a revenue share on successful refunds, while the drawback specialist operates in the background. This model requires zero upfront investment and no customs drawback expertise on the forwarder's part.

Eligibility depends on whether a client imports goods that are later re-exported, used in manufacturing finished goods for export, or destroyed. Freight forwarders can identify candidates by reviewing clients with significant import volumes who also export, sell internationally, or manage returns. An automated eligibility screening tool can systematically evaluate a forwarder's book of business to surface eligible prospects and estimate their refund potential before any formal engagement begins.

Duty drawback claims require import records showing duties paid, export records demonstrating the goods left the U.S., and documentation linking the two — such as bills of lading, commercial invoices, entry summaries, and export declarations. Freight forwarders are well-positioned to support this process because they typically retain or have access to shipping documentation. Platforms like Zollback can ingest these documents in raw PDF, CSV, or ERP export formats and structure them automatically.

U.S. Customs and Border Protection allows recovery of up to 99% of duties paid on eligible goods. The actual amount recovered depends on trade volume, duty rates paid, and which drawback types apply. Nationally, roughly 80% of eligible import tax refunds go unclaimed each year, meaning most importers have untapped recovery potential. Zollback's algorithms evaluate all possible import-export matching combinations to maximize the refund amount for each client.

Zollback's partner program is a white-label arrangement where freight forwarders refer clients and Zollback handles all drawback processing — document parsing, eligibility assessment, refund optimization, compliance review, and CBP filing. The forwarder maintains the client relationship and receives a revenue share on every successful refund. Two engagement models are available: an advisory model where the forwarder stays involved, and a simple referral model that is entirely hands-off. There are no upfront fees or infrastructure costs to join.