Duty Drawback for Importers Recover Up to 99% of Import Duties

Duty drawback is a U.S. government program administered by Customs and Border Protection that refunds up to 99% of customs duties, taxes, and fees paid on imported goods when those goods are later exported, used in the manufacture of exported products, or destroyed. Importers file a claim with CBP documenting the connection between the imported merchandise and the qualifying export or destruction event. Zollback automates this entire process — from document parsing to electronic CBP filing.

Duty drawback eligibility depends on what happens to the imported goods after entry. Manufacturing drawback applies when imported raw 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 without substantial transformation. Rejected merchandise drawback covers defective or non-conforming goods returned to the foreign supplier. Destroyed goods drawback applies when merchandise is destroyed under CBP supervision rather than exported.

Importers generally have five years from the date of importation to file a duty drawback claim with U.S. Customs and Border Protection. This means companies can potentially recover duties paid on imports going back several years, provided the required export or destruction documentation is available. Missing this deadline permanently forfeits the refund, making timely identification of eligible transactions important.

The core documentation typically includes entry summaries from the original import, commercial invoices, bills of lading, export documentation (such as export entry filings or proof of export), and records linking the imported goods to the exported or destroyed merchandise. For manufacturing drawback, production records connecting imported inputs to exported finished goods are also required. Zollback's AI automatically parses all of these document types across PDF, CSV, and ERP formats.

With traditional drawback providers using manual Excel workflows and legacy desktop software, the end-to-end process typically takes 9–12 months from document collection to refund receipt. Zollback's automated platform compresses this to 10–15 working days through AI-powered document parsing, algorithmic optimization, and direct electronic CBP filing via certified ABI software.

Zollback operates on a performance-based pricing model, meaning there are no upfront fees to begin the process. Zollback takes a percentage of the refund amount actually recovered and deposited to your account. If no refund is recovered, you owe nothing. This structure aligns Zollback's incentives directly with the importer's goal of maximizing the refund.