Unused Merchandise Drawback

Unused merchandise drawback is one of the more common categories of drawback claims under the U.S. duty drawback program.

What is unused merchandise drawback?

Unused merchandise drawback allows for a duty refund up to 99% for imported goods that have not undergone manufacturing or production processes, and that are exported or destroyed (under CBP supervision) within 5 years of import.

5 years is the statutory period for filing duty drawback claims.

Note that “used” has a specific definition for drawback purposes, and the goods can undergo certain operations and still be eligible for unused merchandise drawback.

Types of unused merchandise drawback

There are two types of unused merchandise drawback provisions as outlined in Chapter 19 of the U.S. Code of Federal Regulations (CFR):

1. direct identification drawback — 19 CFR § 190.31
2. substitution drawback — 19 CFR § 190.32

Filing an unused merchandise drawback claim

If you are interested in filing an unused merchandise drawback claim (or want to know if your company is eligible), start by talking with a drawback broker.

Shannon Alexander, CHB, CCS

502-380-8400 | salexander@cjinternational.com

Shannon is a licensed Customs Broker with over 3 decades of industry experience, and your point of contact for duty drawback questions! Get in touch with Shannon via phone, email, or by submitting a contact form below.

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