
## What is Duty Drawback?

Duty drawback is a U.S. Customs program that functions like a tax refund for importers. If you import goods, pay duties on them, and later export or destroy those goods (or a substitute), you may be eligible to recover up to 99% of the duties paid.

However, not all 2025 tariffs are created equal. As trade policies have become more aggressive, the government has blocked refunds for certain "punitive" duties while allowing them for others.

## Which Duties Can You Claim Back? (The "Yes" List)

If you paid these duties, you can generally file a claim to get them back:

- **Standard Customs Duties (MFN):** The basic duties assigned to almost all products (Chapter 1–97) are fully refundable.

- **Section 301 Tariffs (China Trade War):** Despite being "punitive," these duties are eligible for drawback. This includes the massive levies on Chinese electronics, furniture, and machinery.  
  **Tip:** You can even claim these under "Substitution" rules, meaning you export similar goods rather than the exact same ones you imported.

- **Section 201 Tariffs (Safeguards):** Duties on specific industries like solar panels and large residential washers are eligible for refund.

- **General "Reciprocal" Tariffs:** The 10% tariffs recently applied to many global trading partners are typically eligible, treating them like standard duties.

## Which Duties Are Lost Forever? (The "No" List)

The U.S. government strictly prohibits refunds on duties linked to national security or specific emergencies:

- **Section 232 Tariffs:** Duties on Steel and Aluminum (and their derivatives) cannot be drawn back. Once paid, this money is gone, even if you re-export the metal. (Note: Very specific, narrow exceptions exist under certain bilateral trade agreements, though the general rule for these national security duties remains ineligibility.)

- **Fentanyl & Opioid Sanction Tariffs:** Any duties imposed specifically under the emergency orders to combat fentanyl trafficking (often labeled IEEPA duties) are ineligible.

- **The "125% China" Reciprocal Tariff:** Unlike the general reciprocal tariffs, the specific, high-rate duties targeting China under recent emergency powers are generally ineligible for drawback.

## The "De Minimis" Shift

In the past, shipments under $800 (De Minimis) were duty-free, so there was nothing to claim back. With the 2025 suspension of De Minimis for Chinese goods, you now pay duties on these small packages.

**The Result:** You technically can claim drawback on these now.

## Key Takeaway

If you are paying **Section 301** or **standard duties**, you are leaving money on the table if you export. If you are paying **Section 232** or **fentanyl duties**, factor that cost as a permanent expense—you won't see it again.

[Estimate your potential refund](/estimate) or [try Drawback Hub free](/subscribe) to start recovering eligible duties.


Not all 2025 tariffs are refundable. Learn which duties you can recover via drawback (Section 301, standard duties) and which are lost forever (Section 232, fentanyl sanctions).

The Duty Layer Cake and Guide to What Can Be Drawn Back


Duty drawback is a U.S. and Canadian customs provision that allows importers to recover up to 99% of duties, taxes, and fees paid on imported merchandise when that merchandise is later exported, destroyed, or used in manufacturing.

## Why Duty Drawback Matters

If you import goods and then export them (or products made from them), you may be leaving money on the table. Duty drawback programs exist to encourage domestic manufacturing and export by refunding duties that would otherwise be a permanent cost.

## Who Can Benefit

- **Importers** who re-export goods
- **Manufacturers** who use imported materials in finished products that are exported
- **E-commerce and retail** businesses with international supply chains
- **Customs brokers and 3PLs** serving importer clients

## How Drawback Hub Helps

Drawback Hub provides software and services to **self-file** duty drawback claims with U.S. CBP and Canadian customs. Our platform streamlines data collection, claim building, and submission so you can recover refunds without the cost of traditional service bureaus.

[Estimate your potential refund](/estimate) or [try the platform free](/subscribe).


Duty drawback lets U.S. and Canadian importers recover duties paid on imported goods when those goods are later exported or used in manufacturing. Here's how it works.

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The Duty Layer Cake and Guide to What Can Be Drawn Back

What Is Duty Drawback? A Guide for Importers