Key Takeaways
- Most eligible refunds still go unclaimed. Drawback claims have grown sharply in the tariff era, yet industry estimates consistently show the majority of eligible companies never file.
- Drawback runs through a specialized system. Claims are filed electronically in ACE and processed by four centralized drawback offices (Chicago, Houston, New York, and San Francisco), not the port of entry.
- More than ordinary duties are recoverable. Consumption entry duties, voluntary tenders, marking duties, internal revenue taxes, merchandise processing fees, and harbor maintenance taxes can all be part of a claim.
- Nearly every importing industry qualifies. From apparel and consumer goods to chemicals, metals, petroleum, and pharmaceuticals, eligibility follows import and export activity, not the industry label.
- A specialist protects both the refund and the compliance record. Knowing which provisions, forms, and offices apply is how refunds get maximized without creating exposure with CBP.
Here at CITTA Brokerage, we get many questions every day pertaining to duty drawback. Those are questions such as what is duty drawback? Can I get some money back for my import & export business? Can I pay off bills using United States Custom’s refunds?
Did you know that an estimated 70% of American drawback refunds are not claimed? Annually, this amounts to more than $2 billion in unclaimed revenue. Which brings us back to the question, why do you as a company need a duty drawback specialist?
First of all, what are Customs Duties Refunds?
The United States Customs & Border Protection (CBP) process for paying duties, taxes and fees is very complicated. They have a refund program for certain import and export fees.
Because the US Customs duties drawback process is so complicated, you might need a duty drawback specialist to help out. We know which forms and documents should be submitted to which office.
Unfortunately, you cannot submit a request to the original port of entry. There are four (4) drawback offices: Chicago, Houston, New York and San Francisco. You must submit your request to the proper drawback office.
What industries might qualify for the drawback? The eligible drawback industries include Agricultural, Alcohol, Apparel, Beverages, Automotive, Consumer Goods, Fabrics, Industrial Chemicals, Metals, Petroleum, Petrochemicals and Pharmaceuticals. These are the duties, fees and taxes that might be eligible for a duty drawback refund:
- Entry Duties for Consumption
- Warehouse Withdrawals for Consumption
- Voluntary Tenders of Duties
- Marketing Duties
- Internal Revenue Service Tax
- Harbor Maintenance Tax
- Merchandise Processing Fees
It is important to note that the Harbor Maintenance Taxes and Merchandise Processing Fees are not refundable for manufacturing drawbacks. Nevertheless, you might qualify for unused, rejected or destroyed merchandise.
And if that is not confusing enough, U.S. Customs just changed its systems from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE). You might not want to leave money on the table, but you might not have the expertise to navigate the complicated U.S. Customs drawback process.
That is why you can hire our duty drawback specialist. We have the “unmatched experience and expertise” to maximize results and refunds. That is why we are the world’s leading duties drawback experts.
Our drawback specialists know which forms to file with whom. And, we even take the next step – our customs house broker experts reduce client burdens and fix any incorrect import classifications.
Although the process is complicated, you might be owed significant amounts of money. This is why it is so important to have a drawback specialist on hand who knows not only exactly what to do to maximize refunds, but can also do so while maintaining compliance.
Frequently Asked Questions
Look for licensed customs brokers who make drawback their core practice rather than a side service, a compliance track record that stands up to CBP privilege reviews, a fee model aligned with results, and named, dollar-quantified outcomes. The right specialist is measured on refunds recovered and claims that survive scrutiny, not on promises.
Typically on contingency. CITTA works on a straight contingency basis, meaning fees come out of recovered refunds and nothing is owed until the refund arrives. That structure also aligns incentives, since the specialist only earns when the claim is built well enough for CBP to pay it.
Yes. Denied claims usually trace back to documentation gaps or filing under the wrong provision, both of which can be diagnosed and rebuilt. Depending on where the claims sit, corrected filings or protests may still be available, and a compliance-first rebuild protects the refunds still inside the five-year window.
