How ecommerce brands can recover up to 99% of U.S. import duties and boost their bottom line
Duty Drawback might be the best-kept secret in global ecommerce.
Established in 1789, this U.S. Customs program allows brands to recover up to 99% of duties, tariffs, and fees paid on imported goods that are later exported, returned, or destroyed. Yet it’s estimated that over 85% of eligible businesses never file a single claim.
In 2025, that’s starting to change.
Why It Matters Now
The U.S. has entered a new era of trade policy. Between:
- Section 301 tariffs on Chinese goods (7.5%–25%)
- 2025’s “Liberation Day” reciprocal tariffs (currently up to 50%)
- New IEEPA tariffs imposed on specific countries
- Merchandise Processing Fees (MPF) and Harbor Maintenance Fees (HMF)
…many ecommerce brands are now paying import duty rates of 40%–100% just to bring goods into the U.S.
If any of that inventory later leaves the U.S.—via international orders or transfers to foreign 3PLs—you could be leaving six or seven figures in refunds on the table.
“Over the past two years, Passport has helped us recover more than $1.5M through Duty Drawback. Not only that, they significantly improved our cash flow through a unique drawback solution so we didn’t have to wait a year to receive our claim.” – Dolls Kill
How It Works
You import. You pay duties. Later, you export.
If the goods leave the country unused and in the same condition, you’re likely eligible to get those duties back.
Common eligible scenarios:
- Shipping from U.S. inventory to international customers
- Fulfilling from U.S. warehouses to Canada, the UK, or the EU
- Transferring unsold inventory to overseas fulfillment centers
- U.S. orders that are returned to another country
And the best part?
You can file retroactively—for up to 5 years.
Why Most Brands Miss Out
Despite the potential, billions in duty refunds go unclaimed every year. Why?
- Most ecommerce brands don’t realize they qualify
- The process is complex and documentation-heavy
- Legacy brokers focused only on massive enterprise clients
- Common myths like: “We’re too small,” or “We haven’t kept good records”
In reality, even modest international exports can unlock substantial refunds.
👉 Talk to Passport about your eligibility
What You Need to File
Filing a duty drawback claim requires:
- Import records (CBP Form 7501)
- Export documentation (shipping, invoices, tracking)
- Proof that the goods were exported unused and unaltered
- Application and privileges approval from U.S. Customs
It’s not DIY—and that’s where Passport comes in.
Passport Makes It Easy
Unlike most ecommerce logistics providers, Passport is a licensed U.S. customs broker. That means we:
- Handle all paperwork and CBP filing
- Use AI-powered matching to align import and export data
- File claims faster and more efficiently—without third parties or intermediaries
- Only take a fee when you get refunded
Ready to turn paid duties into refunds? Connect with a Passport duty drawback expert today.
This article is provided for informational purposes only and does not constitute legal advice. Merchants are advised to consult with their customs broker and legal counsel to ensure compliance with all applicable laws and regulations based on their specific circumstances.
