Vertical Financials
Importing & Logistics

Duty Drawback

Definition

A refund of up to 99% of import duties paid on goods that are later exported or destroyed, or used to make products that are exported.

With tariffs much higher than they used to be, drawback has become worth a look for any brand that re-exports a meaningful share of what it imports.

Claims need detailed records linking import entries to exports, and specialists usually file them. Watch for: international sales of imported goods with no drawback review, which can leave real money unclaimed.

Example

You import $200,000 of goods and pay $50,000 in duties, then export 20% of them to Canada. You may be able to claim back about $9,900 of the duties tied to those exported units.

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