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

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 or try Drawback Hub free to start recovering eligible duties.