You Can Get Import Duty Back on Materials You Re-Export
If you paid import duty on raw materials and then use them to make a product that gets exported, U.S. Customs and Border Protection lets you claim back a large share of the duty you originally paid. This is the federal Duty Drawback program, and by statute the refund is capped at 99% of duties, taxes, and fees paid. Because raw materials are rarely used 100% for exported goods alone, you need to accurately determine what share actually went into exported production, and the completeness of the usage documentation you submit to CBP affects how much of your claim gets approved. This calculator multiplies the duty paid on raw materials by your export usage share and an expected approval rate to give you a rough sense of your potential refund.
How It's Calculated
| Step | Item | Detail |
|---|---|---|
| 1 | Duty on exported-goods materials | Duty paid x export usage share |
| 2 | Estimated refund | Duty on exported-goods materials x approval rate |
The actual refund depends on whether you file individual (direct identification) or substitution drawback, and on supporting records like entry summaries and bills of materials filed with CBP. Confirm exact figures with a licensed customs broker, and remember that under TFTEA claims generally must be filed within 5 years of the import entry date.
Frequently Asked Questions
A CBP program that refunds up to 99% of duties paid on imported merchandise when it (or goods made from it) is later exported or destroyed.
Generally within 5 years of the import entry date under TFTEA, regardless of when the export takes place.
By statute CBP caps refunds at 99%, and the approved amount can be lower depending on documentation and traceability.
* This is a reference estimate; actual CBP-approved refunds depend on your claim type and documentation.