Billions in U.S. duty refunds go unclaimed every year. Here’s how to tell if your ecommerce brand qualifies.
Duty drawback may be the most overlooked source of revenue recovery in ecommerce.
Every year, an estimated $10–15 billion in refundable U.S. import duties go unclaimed. Why? Most brands simply don’t realize they qualify.
If you import products into the U.S. and later sell, return, destroy, or ship them internationally—this article is for you.
1. You Ship to International Customers from U.S. Warehouses
If you fulfill international orders from U.S. inventory, you’re likely eligible to reclaim duties paid on those goods.
Example: A skincare brand imports finished goods into the U.S., stores them in a 3PL in New Jersey, and ships to customers in Canada and the UK.
Result: Eligible for unused merchandise drawback.
2. You Manufacture Products Using Imported Components
If you import parts, components, ingredients, or raw materials for assembly or manufacture domestically, then export the final goods, you may qualify for manufacturing drawback.
Example: A supplement brand imports ingredients, then formulates and packages the product in the U.S., and exports to Australia.
Result: Up to 99% of duties, fees, and tariffs can be refunded.
3. You Handle a High Rate of Returns or Unsold Inventory
If you import goods and later destroy, discard, or return unsold/damaged items, you may qualify for destruction drawback.
Example: A fashion retailer ships orders direct-to-consumer from their facility in France. The consumer returns the order and it is shipped back to France.
Result: You could reclaim 99% of duties on all returned goods.
4. You’ve Paid U.S. Tariffs in the Last 5 Years
Drawback is retroactive—meaning you may be sitting on a sizable refund opportunity from past shipments.
Example: A brand pays $100K in duties each year. If 25% of that inventory was exported, destroyed, or returned, they could recover ~$25K per year × 5 years = $125K in refunds.
Still Not Sure? Passport Can Help
We’ve made it simple to explore your refund potential:
- We scan your import/export data
- We handle the CBP paperwork
- You don’t pay unless you get a refund
“Drawback is federal law—not a loophole. You just need a partner who knows how to unlock it.”
— Thomas Taggart, VP of Global Trade, Passport
Bottom Line
You don’t need perfect records or a massive operation. If you’ve paid U.S. duties and moved goods out of the country—or off the shelf—you could be eligible.
