Key Takeaways
- Eligibility follows the statute behind the tariff. Ordinary customs duties, Section 301 tariffs, and Section 201 safeguard duties are drawback eligible, and the temporary Section 122 tariffs in effect through July 24, 2026 generally are as well.
- The main exclusions are Section 232 and AD/CVD. Most Section 232 duties are not drawback eligible, aside from limited exceptions added in 2025, and antidumping and countervailing duties never are.
- The 2025 IEEPA tariffs no longer belong on either list. The Supreme Court struck them down in February 2026, and refunds now flow through a court-directed CBP process rather than drawback claims.
- New Section 301 tariffs are expected to be drawback eligible. USTR proposed duties of 10% to 12.5% on 60 economies in June 2026, and eligibility follows the statute, so there is no basis for treating them differently from the 2018 China tariffs.
- Sorting the layers is the first step. A single entry can carry several duty layers at once, and separating the eligible layers from the ineligible ones is how a drawback program gets valued.
With the Trump Administration’s focus on import tariffs, businesses are once again feeling the pressure of rising trade costs. As these levies increase, many companies are revisiting duty drawback as a tariff mitigation strategy, especially with the April 4 Customs and Border Protection (CBP) brief confirming that drawback is available for the new across-the-board 10% and reciprocal tariffs of 11% to 50%.
Duty drawback is a refund of tariff-imposed import duties, taxes, and fees paid on imported goods that are subsequently exported or destroyed. — and for businesses looking to protect their bottom line, it can be a valuable tool.
Given the growing complexity of today’s trade environment, we want to share our latest interpretation of which tariffs are currently eligible for drawback — and which ones are not. Here’s what we know so far.
Drawback-Eligible Tariffs
- 10% Universal Tariff, Effective April 5, 2025
- Country-Specific Reciprocal Tariffs, Effective April 9, 2025.
- Section 301 “China” Tariffs, Effective 2018
- Section 201 Tariffs, Outlined in the Trade Act of 1974
- Other ordinary tariffs
Drawback-Ineligible Tariffs
Many of the executive orders linked below contain language like, “No drawback shall be available with respect to the duties imposed pursuant to this order.”
- 25% On Automotive Imports, Effective April 3, 2025
- 25% On Goods and 10% on Energy Products from Canada, Effective April 2, 2025
- 25% On Goods from Mexico, Effective April 2, 2025
- 25% On Aluminum from Most Countries, amended from 10%, Effective March 12, 2025
- 25% On Steel from Most Countries, Effective March 12, 2025
- 20% On Goods from China, amended from 10%, Effective February 5, 2025
Note on Low-Value Imports
If your organization takes advantage of any de minimis exemptions, please note that this will end for low-value imports (under $800) from China on May 2, 2025. Where available, we recommend filing drawback to offset those costs.
Ready to discover your tariff drawback potential? Let’s have a conversation about your specific situation. Set up a discovery call today.
Frequently Asked Questions
Yes. Drawback is calculated layer by layer, so eligible duties on an entry line, such as ordinary duties and Section 301, can still be claimed when an ineligible layer like Section 232 sits on the same product. The ineligible portion is simply excluded from the calculation rather than disqualifying the entry.
Check the entry summaries. Special tariff programs appear as additional Chapter 99 line items on CBP Form 7501 alongside the product’s regular HTS classification, so every duty layer is visible entry by entry. Mapping those layers against the lists above is how drawback potential gets quantified.
Fees count too. Drawback covers duties, taxes, and fees, which includes the merchandise processing fee and, under the modernized rules, the harbor maintenance fee tied to the claimed imports. On high-volume entries those fees add up, so they belong in any recovery estimate.
The claim is adjusted rather than lost. When duties come back through another mechanism, such as a retroactive exclusion or the court-ordered IEEPA refund process, that portion must be removed from the drawback claim to prevent double recovery. An experienced broker reconciles affected claims proactively.
