How goods legally enter a country · Recovering duty on re-exported goods
Duty drawback and refunds
A refund mechanism for duties paid on imported goods that are later exported, subject to strict documentation and deadlines.
Key facts
| US | Drawback can refund up to 99% of duties, taxes and fees on qualifying exports |
|---|---|
| US deadline | A claim is generally filed within five years of importation |
| EU | Repayment or remission is available under customs rules when the conditions are met |
| Evidence | Import entry, export declaration, proof of export and a link between them |
| Not automatic | The importer must claim and support the refund |
| Substitution | Some regimes allow substituted goods, but the matching rules are strict |
| Cost | Broker or specialist fees and working capital matter in the business case |
| Official source | National drawback and repayment guidance |
Drawback is a documentation business
The refund depends on proving that the exported goods are the imported goods, or qualify under a substitution rule. Without a clean link between entry and export, the claim fails even when the physical flow is real.
Set up the record at import, not at export. Capture the entry number, the SKU, the quantity and the export reference in one place.
Model the cash flow, not just the refund
A drawback claim can take months. The duty is paid at import and recovered later, so the business case includes working capital and specialist fees. For low-duty goods, the administrative cost may exceed the refund.
If you re-export regularly, ask a broker or drawback specialist for a cost estimate before building the process.
Frequently asked questions
Can I get duty back if the buyer returns the goods?
A return is not automatically a drawback. The goods usually need to be exported under the qualifying procedure, and the claim must meet the destination rules.
Is drawback available in every country?
No. Many countries have a repayment, remission or drawback regime, but the scope and deadlines differ.
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