The World's Most Advanced Duty Drawback Algorithm
Upgrade your duty drawback program with Flexport's technology. Companies switching to our drawbacks process consistently yield refunds of 20% or more above what competitor programs deliver. Our team of drawbacks professionals delivers these results with our superior data collection technology that feeds our cutting edge machine learning algorithm for matching imports and exports to maximize yields.
If you import, you’re paying duties.
Billions in U.S. duties go unclaimed each year. Too often, eligible companies miss out due to outdated systems and regulatory complexity. With rising tariffs, the stakes are higher, unlocking this hidden value starts with fresh expertise and advanced technology.
If you export, you may qualify for refunds.
Export activity opens the door to recovering duties, but fragmented data and complicated CBP rules can slow progress. Our platform brings clarity, integrating your import, export, ERP, and BOM data, automatically surfacing every refund opportunity and making compliance effortless.
Maximizing recoveries, powering growth
Drawback is where possibility becomes reality. Flexport unites cutting-edge automation with expert oversight, ensuring every eligible dollar is recovered quickly and accurately. The result: stronger cash flow and competitive advantage for businesses of any size or complexity.
Testimonials
"Flexport already has all our data. At that point, it was a no-brainer to proceed with the duty drawback program and it took less than six months for the refunds to start flowing in. And this was after two years of spinning our wheels. It was fantastic!"
Aman Advani
CEO & Co-Founder, Ministry of Supply
What is duty drawback?
Duty drawback is a U.S. Customs and Border Protection (CBP) program that lets importers recover up to 99% of duties, taxes, and fees on goods that are exported or destroyed. Filing a duty drawback claim helps businesses cut import costs, boost cash flow, and improve trade efficiency. Partnering with Flexport’s duty drawback experts ensures compliant, accurate filings and maximum refund recovery.
Who is eligible for duty drawback?
Duty drawback is not industry‑specific — it’s available to any U.S. business that imports goods and later exports or destroys them under U.S. Customs and Border Protection (CBP) rules. Whether you’re in manufacturing, retail, or technology, you may qualify to recover up to 99% of import duties, taxes, and fees. Claiming a duty drawback refund helps companies reduce import costs, boost cash flow, and maximize trade profitability.
How do I maximize my drawback?
Flexport combines advanced technology and trade compliance expertise to help businesses capture every eligible duty drawback refund. Our platform automatically matches import and export data, streamlines filings, and ensures full audit compliance - reducing costs, speeding cash recovery, and optimizing global trade operations.
Duty Drawback Process for Importers and Exporters
- Import Goods Into the U.S.
- Export or Destroy the Goods
- Gather Documentation
- Match Imports to Exports
- Prepare and File the Claim
- CBP Review and Approval
- Receive Your Duty Drawback Refund
| Common Complaints about Drawback | Flexport’s Solution |
|---|---|
| 𝗑 Manual process. Drawback is highly dependent on manual spreadsheets, physical documents, and a lot of back-and-forth. | ✓ Leveraging technology. Automated data collection, document ingestion and digitization, third-party data ingestion and validation, and claim generation where possible. |
| 𝗑 Data needed is unreliable. Drawback often requires data cobbled together from various sources, resulting in lost revenue or disqualification from recovery. | ✓ Quality data. Imports and other transactions performed with Flexport automatically produce granular data necessary to facilitate drawback recoveries. Flexport can also review and store data filed by other brokers. |
| 𝗑 Little visibility to claim activity. It’s challenging to see past drawback claims and ensure all drawback opportunities are maximized. | ✓ Access to your claims. Instant access anywhere and anytime to all drawback claims, claim data, and all supporting documentation on our platform. |
Automated Data Integration for Complete Accuracy
Seamlessly connect your ACE, ERP, import/export, and supplier/customer records. Our technology intelligently pulls, reconciles, and verifies all required data, eliminating spreadsheet chaos and preventing costly errors or missed filings.
Compliance Engine: Built In Our DNA, Never Bolted On
Every claim is instantly validated against evolving CBP, ACE, and trade remedy requirements - with proactive alerts and auto-updates. No need to monitor regulatory change: your submissions are always audit-ready by default.
Transparent, Auditable Filing, and Status Monitoring
Track every refund opportunity, claim submission, and audit trail in real time. Enjoy radical visibility and full control, from eligibility analysis to payment received.
Accelerated Refund Cycles
Our end-to-end automation and structured compliance cut cycle times by months, most clients with established programs often receive duty drawback payments in as little as six weeks.
Duty Drawback Best Practices for Importers and Exporters
- Maintain Accurate Import and Export Documentation: Keep thorough records, including entry summaries, invoices, and bills of lading, to support your duty drawback claims and ensure compliance with U.S. Customs and Border Protection (CBP) regulations.
- Connect Import and Export Data with Platforms like Flexport: Link your import entries to corresponding export shipments early to easily identify eligible transactions and maximize duty drawback refunds.
- Verify Eligibility Requirements: Lean on our experts to confirm which imported products, components, or materials qualify for U.S. duty drawback when they are exported or destroyed.
- File Duty Drawback Claims on Time: Our Duty Drawback team will submit claims promptly within the CBP‑approved timeframe (typically five years) to accelerate duty recovery and improve cash flow.
- Partner with Duty Drawback Experts: Collaborate with Flexport customs brokers and trade compliance specialists who can help importers and exporters accurately file claims and recover the highest possible refunds.
- Centralize Your Trade Data: The Flexport platform unifies all your data to manage import/export documentation across your organization for greater visibility and simplified duty drawback management.
- Perform Regular Compliance Audits: Our experts will conduct internal reviews to ensure CBP duty drawback accuracy, reduce errors, and protect your business from penalties.
- Leverage Automation and Technology: Our technology offers automated data matching, audit tracking, and reporting, saving time while optimizing recovery.
Frequently Asked Questions
Why haven’t I heard of duty drawback?
Historically, duty drawback has been a niche, complex, and data-intensive service, often misunderstood and lacking the necessary technological advancements to make it accessible. At Flexport, we're fundamentally changing this.
We've integrated duty drawback natively into the Flexport Platform, leveraging cutting-edge algorithms and technology to streamline a previously time-consuming process. This approach makes drawback accessible and efficient for companies of all sizes. Even those with smaller recovery potential can now achieve a profitable program, while businesses with larger, more complex supply chains can utilize our technology to significantly boost and accelerate their refunds, realizing value that was previously out of reach.
How much money are we really talking about here?
It’s estimated that companies leave as much as $6 billion in duty drawback refunds unclaimed each year, and that number is growing with the introduction of new tariffs. The amount you may be missing out on depends on several factors, such as the types and amounts of import duties paid, your export volume and values, and your specific business operations. To estimate your potential recovery, you can apply the following process:
- Identify your total import duties paid over the past year.
- Determine the percentage of your transactions that have been exported or destroyed.
- Multiply the total duties (from step 1) by the percentage (from step 2) for an estimated potential recovery.
Am I eligible for duty drawback?
If your company imports goods and pays duties, taxes, or fees, and also exports or destroys merchandise, there's a strong possibility you are eligible for duty drawback. Drawback is a refund of up to 99% of certain import duties, taxes, and fees upon exportation or destruction. The good news is that most industries and commodities qualify for drawback.
What duties, taxes, and fees qualify?
Duties, taxes, and fees that qualify for drawback generally include most regular customs duties, Section 301 and 201 duties, the IEEPA Reciprocal and Brazil/India tariffs, the Harbor Maintenance Fee (HMF), and the Merchandise Processing Fee (MPF). However, special duties such as antidumping or countervailing duties, over-quota duties, and Section 232 duties are not eligible for drawback.
How frequently can I file for drawback?
One of the significant benefits of a drawback program is the ability to claim refunds retroactively. At the onset of a drawback program, you can claim up to the last five years of eligible imports, exports, and destructions.