Rejected Merchandise Drawback Recover Up to 99% of Duties Paid

Merchandise qualifies for rejected merchandise drawback under 19 U.S.C. 1313(c) if it was imported and found to be defective, non-conforming to sample or specification, or shipped without the consent of the consignee. The goods must not have been used in the U.S. (with a limited exception for testing) and must be exported or destroyed under CBP supervision. Documentation of the defect or non-conformance is required to support the claim.

Rejected merchandise drawback allows recovery of up to 99% of the import duties originally paid on the non-conforming or defective goods. The 1% retained is a standard CBP administrative fee. The exact refund depends on the duties paid at importation and the completeness of the documentation submitted with the claim.

Under standard rules, the drawback claim must be filed within five years of the date of importation. However, rejected merchandise drawback has an important exception: the goods must be exported or destroyed within one year of the importation date. Missing this one-year window for export or destruction generally disqualifies the merchandise from this drawback type, so acting quickly after identifying non-conforming goods is critical.

Required documentation typically includes the original import entry records, commercial invoices, a notice of intent to export or destroy (CBP Form 7553), proof of CBP supervision of the export or destruction, and evidence establishing that the goods were defective or non-conforming. Exportation records such as bills of lading and export declarations are also required. Incomplete documentation is one of the most common reasons claims are delayed or denied.

Both drawback types apply to imported goods that are re-exported in the same condition without being used in the U.S. The key difference is the reason for export: rejected merchandise drawback applies specifically when goods are defective, non-conforming, or were shipped without consent. Unused merchandise drawback under 19 U.S.C. 1313(j) applies more broadly to goods simply re-exported unused, regardless of condition. The rejected merchandise provision has a stricter one-year export or destruction requirement compared to the standard five-year window.

Yes. Zollback is a licensed customs brokerage with direct CBP filing authority via certified ABI software. The platform automates document parsing, eligibility assessment, and refund optimization, while in-house licensed customs brokers review every claim before submission. Zollback operates on a performance-based pricing model — no upfront fees, and you only pay when refunds are deposited to your account.