Duty drawback is the US customs program that refunds duties you paid on imported goods once those goods (or qualifying substitutes) are exported or destroyed. For an Amazon FBA seller, that means duty drawback can return up to 99 percent of the eligible duties on inventory you imported and later shipped out of the US or destroyed under customs rules, as long as you file in ACE within five years of the import date (19 CFR 190.51 and CBP’s drawback page, data checked 2026-10-06). Duties on goods you sold to US customers do not come back.
This guide covers who qualifies, which duties are refundable, the deadlines, and why most small sellers file through a licensed customs broker. It does not repeat how duties are calculated in the first place; for that, start with our FBA import tariffs guide.
What duty drawback is, in CBP’s own words
CBP’s ACE drawback page opens with a one-line definition: “Drawback is a refund, in whole or in part, of duties, fees and internal revenue taxes imposed on imported merchandise.” The same page states the trigger: “Drawback is paid based on the exportation or destruction of imported merchandise or a valid substitute.” (CBP, Drawback in ACE, data checked 2026-10-06.)
Two definitions in the regulations matter for sellers (19 CFR 190.2, eCFR, data checked 2026-10-06):
- Exportation is “the severance of goods from the mass of goods belonging to this country, with the intention of uniting them with the mass of goods belonging to some foreign country.”
- Destruction is “the destruction of articles or merchandise to the extent that they have no commercial value.”
So the refund is tied to goods leaving the US market for good. A unit that stays sold in the US earns nothing back; a pallet of unsold stock exported to a warehouse outside the US, or a defective batch destroyed, can qualify. Exports to Canada or Mexico follow separate rules (see the substitution note below).
Four situations where an Amazon seller might qualify
Eligible FBA inventory usually falls into one of these cases, and the category decides the paperwork.
| Your situation | Likely drawback type | What has to be true |
|---|---|---|
| Unsold stock pulled from FBA and shipped to another country (your own warehouse, a foreign marketplace, a distributor) | Unused merchandise drawback, 19 U.S.C. 1313(j) | Goods were not used in the US, then exported; you can link the export to a duty-paid import entry |
| Defective, expired, or unsellable stock that you choose to destroy rather than liquidate | Unused merchandise drawback via destruction | Destruction under the notice rules in 19 CFR 190.71, leaving no commercial value |
| Goods that did not match the sample or specifications, or were defective at import, sent back to the supplier | Rejected merchandise drawback, 19 U.S.C. 1313(c) | Documentation of the defect or nonconformity; export or destruction under CBP supervision |
| Customer returns you accepted and then export or destroy | Rejected merchandise drawback for retail returns, 19 U.S.C. 1313(c) | Goods were sold at retail and “for any reason returned to and accepted by the importer” (19 CFR 190.41); extra rules in 19 CFR 190.45 |
CBP’s overview describes unused merchandise drawback as covering “Imported merchandise that has not been used in the U.S., or has undergone an operation(s) or combination of operations that does not amount to a manufactured or produced article” (CBP Drawback Overview, data checked 2026-10-06). Whether FBA prep such as relabeling counts as “use” is a question to settle with your broker.
For rejected merchandise, 19 CFR 190.41 states: “The total amount of drawback allowable will be 99 percent of the amount of duties paid with respect to the imported, duty-paid merchandise.”
Substitution. Under TFTEA, the trade law behind the current drawback rules, you do not always have to export the exact unit you imported. CBP states: “Substitution will now be based on an 8 - digit Harmonized Tariff Schedule or Department of Commerce Schedule B number.” If you import the same SKU repeatedly under one 8-digit HTS code, an export of that code can be matched to a duty-paid import of the same code, subject to the value limits in the rules. CBP’s overview adds two limits for substitution unused merchandise (data checked 2026-10-06): the imported merchandise’s 8-digit HTS must not be described as “other” (if it is, the 10-digit classification must match and not be described as “other”), and “No exports to Canada or Mexico allowed.” Same-condition exports to Canada or Mexico fall under 19 CFR 181.45(b)(1) instead.
What about Amazon’s own programs? Amazon’s FBA Export and Amazon Global Logistics move goods across borders, but CBP’s drawback pages and 19 CFR 190 do not mention either program, and nothing in them says an FBA Export order automatically counts as your export for drawback. The regulations say “the exporter (or destroyer) will be entitled to claim drawback” (19 CFR 190.82), so the practical question is who the exporter is on each shipment and whether you hold the export records. Ask your broker before you count on refunds from orders Amazon ships abroad.
A standard removal order set to disposal, or stock sent to FBA Liquidations, does not on its own meet the destruction notice rules described below. Liquidated goods are sold in the US, so they are not destroyed or exported at all.
The 99 percent rule and which duties come back
The amount is set in 19 CFR 190.51(b): claimants calculate refunds at “99 percent of the duties, taxes, and fees eligible for drawback.” The regulation’s own example: “if $1,000 in import duties are eligible for drawback less 1 percent ($10), the amount claimed on the drawback entry should be for $990.” Claims that exceed 99 percent “(or 100% when 100% of the duty is available for drawback)” are held until corrected (eCFR 190.51, data checked 2026-10-06).
Not every duty on your entry summary is eligible. Here is what CBP and the regulations say for the duties FBA sellers most often pay (data checked 2026-10-06):
| Duty on your import | Drawback eligible? | Source |
|---|---|---|
| Regular (column 1) duties under the HTS | Yes, if the export or destruction conditions are met | 19 CFR 190.3(a) |
| Section 301 duties (China) | “yes Section 301 duties are eligible for duty drawback” | CBP Drawback 301/201 FAQ |
| Section 201 duties | Yes | CBP Drawback 301/201 FAQ |
| Section 232 duties on steel and aluminum (Proclamations 9739 and 9740) | “goods subject to Section 232 are ineligible for refund of 232 duties, per Presidential Proclamation 9739 and 9740” | CBP Drawback 301/201 FAQ |
| Antidumping and countervailing duties | No | 19 CFR 190.3(b) |
| IEEPA duties (2025 to February 2026) | Handled first through CBP’s separate IEEPA refund process | CBP IEEPA Duty Refunds page |
The 301/201 FAQ is on CBP’s drawback trade remedies page (last modified March 7, 2025). It adds that 301 and 201 duties are refundable on substitution claims, but capped by the value of the substituted merchandise when that is lower.
IEEPA duties are a separate track. As our tariffs guide explains, the IEEPA tariffs stopped being collected after Executive Order 14389 of February 20, 2026. CBP is refunding IEEPA duties through a process called CAPE, and its IEEPA Duty Refunds page (last updated September 30, 2026) tells filers: “You are encouraged to place entry summaries that are eligible for drawback on your CAPE Declaration and submit them prior to filing a drawback claim.” If you paid IEEPA duties on goods you later exported, sort out the IEEPA refund first, then file drawback on whatever duty is left.
The clocks: five years, notices, and records
Miss one notice and the claim for that shipment can be denied.
| Deadline | Rule | Source |
|---|---|---|
| File the claim | “a uniform five-year filing deadline from the date of importation of the designated imported merchandise” | CBP Drawback in ACE |
| Exception | Manufacturing claims under 19 U.S.C. 1313(d) have “the filing deadline of three years after the date of exportation” | CBP Drawback in ACE |
| Notice before export (unused merchandise) | “at least 5 working days prior to the date of intended exportation unless CBP approves another filing period” | 19 CFR 190.35 |
| Notice before destruction | CBP Form 7553 “At least 7 working days before the intended date of destruction” | 19 CFR 190.71 |
| Keep records | “three years from the date of liquidation” | CBP Drawback in ACE |
All dates above were read from the cited pages on 2026-10-06.
The notice step is where small sellers most often lose eligibility. Under 19 CFR 190.35, if CBP says it wants to examine the goods “but the merchandise is exported without having been presented to CBP for examination, any drawback claim, or part thereof, based on the Notice will be denied.” For destruction, CBP replies within four working days on whether it will witness. If it does not attend, “the claimant must submit evidence that destruction took place in accordance with the Notice of Intent” from “a disinterested third party (for example, a landfill operator).”
One more detail on destruction: the value of anything recovered, such as salvage or scrap, “must be deducted from the value of the imported merchandise that is destroyed” (19 CFR 190.71).
Who files, and why most small sellers use a broker
You cannot file a drawback claim the way you file a tax return. CBP’s ACE drawback FAQ states that “All claims must be filed electronically through the Automated Broker Interface (ABI),” and lists three routes: self-file, “Use a licensed Customs broker,” or “Use a service provider.” It also states: “Claims may not be filed through an ACE Portal account or directly with a CBP office.” Paper claims ended in February 2019 (data checked 2026-10-06).
Self-filing through ABI means running software that speaks CBP’s electronic format. That fits a high-volume importer, rarely a seller with a few containers a year, so most small Amazon sellers hire a broker.
On bonds, the FAQ answers “In general, no,” with one exception: a bond is needed if you have been preapproved for accelerated payment and request it on the claim. CBP says an approved accelerated payment “will usually occur within three weeks of the AP acceptance date in ACE.” Accelerated payment and waiver of prior notice both require preapproval.
Who gets the money also matters. Under 19 CFR 190.82, the exporter or destroyer holds the right to claim and can assign it to the importer by certification. If your freight forwarder or a foreign buyer is the exporter on paper, you need that certification to claim. See our freight forwarder guide for how roles get assigned on shipping documents.
Is drawback worth it for you? A five-question check
Answer these in order. A “no” at any step usually ends the case.
- Did you pay meaningful duty? Pull the duty lines from your entry summaries. Low-duty goods with no Section 301 exposure may not return enough to cover filing costs.
- Is the stock actually leaving the US market? Export to a foreign location, destruction with no commercial value, or return to the supplier. US liquidation or resale does not count.
- Can you tie each export or destruction back to a duty-paid import within five years? You need import records and export or destruction records for every claimed unit. If you import the same 8-digit HTS code repeatedly, substitution may help.
- Can you give notice in time? Five working days before export, seven before destruction, unless CBP has approved a waiver.
- Are you the party entitled to claim, or can you get the right assigned? If someone else is the exporter, get the 19 CFR 190.82 certification.
Get a written fee quote from a broker before you commit, and compare it with your 99 percent figure. We do not cite typical broker fees or refund rates here because they vary by provider and we have no official source for them.
Common mistakes
- Destroying or exporting first and asking later. Without the advance notice, CBP can deny the claim for that shipment.
- Treating Amazon disposal or liquidation as “destruction.” Liquidated goods are sold in the US. A disposal order does not, on its own, produce the CBP Form 7553 notice or third-party proof the rules require.
- Assuming Section 232 duties come back. CBP’s FAQ (last modified March 7, 2025) says the steel and aluminum duties under Proclamations 9739 and 9740 do not. Newer 232 actions are not covered by that page, so check the specific proclamation with your broker.
- Filing drawback on IEEPA entries before CAPE. CBP encourages putting drawback-eligible entries on a CAPE Declaration first.
- Losing the paper trail. Records must be kept three years from liquidation, and the claim depends on linking imports to exports.
Frequently Asked Questions
Can Amazon FBA sellers get a duty refund on unsold inventory?
Yes, if the unsold inventory is exported or destroyed under the drawback rules and you file within five years of import. Inventory sold or liquidated in the US does not qualify.
How much of the duty is refunded?
Up to 99 percent of the eligible duties, taxes, and fees under 19 CFR 190.51(b). Antidumping and countervailing duties are not refundable through drawback, and CBP’s FAQ (last modified March 7, 2025) says the Section 232 steel and aluminum duties under Proclamations 9739 and 9740 are not either; check newer 232 actions with your broker.
Does FBA Export count as an export for drawback?
CBP’s drawback pages do not address Amazon’s programs. Drawback belongs to the exporter of record unless assigned to you, so confirm with a broker whether you can document those orders as your exports.
Can I file a drawback claim myself in the ACE Portal?
No. CBP states claims “may not be filed through an ACE Portal account.” You file through ABI yourself, through a licensed customs broker, or through a service provider.
How long does a drawback refund take?
CBP gives one timing figure: an approved accelerated payment “will usually occur within three weeks of the AP acceptance date in ACE.” That requires preapproval and a bond. Without it, payment waits for the claim to be processed.
Conclusion
Duty drawback for Amazon sellers is real money in a narrow set of cases: stock that leaves the US market for good, on imports that carried meaningful duty, with records that link the two. The 99 percent ceiling and five-year window are generous. The advance notices and the filing route are not, which is why most small sellers who pursue drawback hand it to a licensed customs broker. Start by listing the inventory you plan to export or destroy in the next year, then check it against the five questions above.