What is a Duty Drawback?

Duty drawback, also known as simply the drawback, is a trade program established in the U.S. that allows importers, exporters, and manufacturers to claim a refund of certain duties, taxes, and certain fees paid as importation charges. Specifically, if the imported goods are subsequently exported to another country or destroyed under the supervision of U.S. Customs and Border Protection, the importer can claim this refund.

How does a Duty Drawback Work?

When a good is imported into the country, certain taxes and tariffs are collected from the company. If those imported goods are then again exported to another country, claims for duty drawback can be made by the company. 

The goods exported do not necessarily need to be in the same condition as it was imported for claiming this refund. That is, if the imported good is a manufacturing material used for making the exported product the refund is available.