27 June 2023Guide
UK Guide to Customs Duty Drawback

What is duty drawback?

Many companies pay duties and taxes up-front when importing their products into a country. Duty drawback is a refund from US Customs and Border Protection (CBP) for 99% of the duties paid on imported items that are then exported or used in the manufacturing of goods to be exported. This allows US businesses to compete with other nations that have the ability to produce goods for a lower cost, keeping a balance in the global marketplace.

The latest iteration of the duty drawback customs process, the modernised duty drawback, is a special provision of U.S. law that under certain circumstances permits the ability to seek a refund of 99% of the duties paid upon the importation of an article. The ability to qualify for and obtain refund via drawback is highly dependent upon the nature of the product, processes to which it may have been subject and the documentation, records, and details maintained and available regarding their importation, processing and exportation.

Who can claim duty drawbacks?

US Importers & Exporters – You have the right to claim duty drawback on your exports, even if you didn’t import or manufacture the goods. If you are based outside of the USA but have a US legal entity, please also get in touch about our Duty Drawback solutions. We can review your case to determine eligibility and help you identify additional opportunities for drawback recovery.

Are all duty drawbacks claimed?

Drawbacks can be made on imports up to 5 years after the import transaction date, with around 99% of all original fees and duties claimable under the duty drawback scheme. However, there is still a high unclaimed drawback rate, with around 70% of the duty funds being lost by thousands of companies across the US due to the complex nature of duty drawbacks.

Oftentimes businesses do not have the in-house knowledge or resources to be able to claim duty drawback, however, Woodland Group’s duty drawback specialists are able to confirm the eligibility of goods for refunds and help process claims.

Which product groups are eligible?

Product groups eligible for duty drawback include but are not limited to:

  • Aerospace
  • Agricultural products
  • Alcohol and beverages
  • Automotive
  • Consumer goods
  • Industrial chemicals
  • Metals / alloys
  • Petroleum and petrochemicals
  • Pharmaceuticals and medical equipment
  • Textiles; footwear; apparel & accessories
  • Tobacco

Expansion Support

We will help you identify opportunities to grow your duty drawback program and increase revenues for your business.

While our customs teams across the globe guide you through ever-changing tariffs and trade deals, our dedicated duty drawback team can help you get refunds on duties, taxes and fees.

If you would like more information, please contact our duty drawback team below:

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