Recover Up to 99% of Duties You Already Paid
AIT Tahipo LLC handles your duty drawback filing from eligibility screening to final refund — accurately, affordably, and without the learning curve.
What Is Duty Drawback — and Why Are You Probably Leaving Money on the Table?
Duty drawback is one of the oldest and most underutilized refund programs in U.S. trade law. Established by the Continental Congress in 1789 and modernized by the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015, it allows U.S. importers and exporters to recover up to 99% of customs duties, taxes, and fees paid on imported goods — if those goods are subsequently exported, used to manufacture exported products, or destroyed under CBP supervision.
According to CBP, billions of dollars in eligible drawback refunds go unclaimed every year — not because businesses don’t qualify, but because most have never heard of the program or assume the filing process is too complex to pursue.
AIT Tahipo LLC removes that barrier. We handle every step of the drawback process for you — from identifying eligible entries to collecting your refund — at rates designed for businesses of every size.
Types of Drawback We Process
AIT Tahipo is equipped to handle all drawback provisions under 19 U.S.C. § 1313 and 19 C.F.R. Part 190 (TFTEA regulations).
Manufacturing Drawback
Direct Identification (19 U.S.C. § 1313(a)): Recover 99% of duties on imported materials used to manufacture articles that are then exported or destroyed.
Substitution (19 U.S.C. § 1313(b)): Use commercially interchangeable substitute materials in production and still claim on the imported duty-paid goods — even if the actual imported material was not used in the exported article.
Unused Merchandise Drawback
Direct Identification (19 U.S.C. § 1313(j)(1)): Export or destroy imported goods without any domestic use and recover nearly all duties paid.
Substitution (19 U.S.C. § 1313(j)(2)): Substitute commercially interchangeable goods sharing the same 8-digit HTS subheading and claim on those exports or destructions.
Rejected Merchandise Drawback
Recover duties on imported goods that are defective, fail to meet specifications, arrive damaged, or are shipped without consent — when those goods are returned to the supplier or destroyed under CBP supervision within the three-year statutory period.
Section 301 & Reciprocal Tariff Drawback
CBP has confirmed that Section 301 tariffs on imports from countries subject to trade remedies, and the April 2025 reciprocal tariffs (HTSUS 9903.01.25), are eligible for drawback. If you’re paying elevated tariffs, a drawback program can systematically recover a significant portion.
Other Government Agency (OGA) Fee Recovery
Certain fees collected by Other Government Agencies (such as Harbor Maintenance Fees and Merchandise Processing Fees, where applicable) may also be recovered as part of a drawback claim. AIT Tahipo reviews your entries to identify all recoverable amounts — not just base tariffs.
Third-Party & Supply Chain Drawback
You don’t need to be the original importer to file a drawback claim. Exporters, contract manufacturers, and third-party logistics providers can qualify — provided proper transfer of drawback rights and supporting documentation are in place. AIT Tahipo manages the rights transfer and filing process.
New: Reciprocal & Section 232 Tariffs Are Now Drawback-Eligible
CBP has officially confirmed that the 10% universal baseline tariffs imposed under the April 2025 Executive Order (HTSUS 9903.01.25) are eligible for duty drawback. This opens a significant new recovery channel for importers affected by recent tariff escalations. Combined with ongoing Section 301 tariff exposure, businesses that import and export may now have substantially larger drawback claims than they realize. See CBP’s official drawback overview →
How AIT Tahipo Handles Your Drawback Filing
A clear, six-step process — from first call to refund deposited in your account.
Free Consultation & Eligibility Assessment
We start with a no-obligation review of your import and export activity to determine which drawback provisions apply, estimate your refund potential, and identify any documentation gaps before any work begins.
Document Collection & Pre-Filing Audit
We provide a tailored document checklist and review your CBP Form 7501 entry summaries, commercial invoices, bills of lading, proof of export, and — for manufacturing claims — production records. Every document is audited before submission to eliminate errors that would cause CBP to reject the claim.
Privilege Application (Where Applicable)
For clients who qualify, we assist in applying for Accelerated Payment (AP) privilege, which reduces the standard 1–4 year claim timeline to as little as 30–45 days. We also assist with Waiver of Prior Notice and specific manufacturing rulings where needed.
Claim Preparation & ACE / ABI Transmission
All drawback claims must be filed electronically through the Automated Broker Interface (ABI) within the Automated Commercial Environment (ACE) — paper claims are not accepted by CBP. AIT Tahipo constructs your claim and transmits it via ABI on your behalf, with all supporting documents uploaded to CBP’s Document Imaging System (DIS).
CBP Review & Liquidation Monitoring
We track your claim through CBP’s review and liquidation process, monitor ACE for updates, and respond to any CBP correspondence or documentation requests. If CBP issues a bill (for example, where an Accelerated Payment exceeds the final liquidated amount), we coordinate the resolution.
Refund Receipt & Documentation
Once CBP liquidates the claim, your refund is issued. We provide complete documentation of the final claim outcome for your records — including the amounts recovered per entry, fees recovered, and liquidation confirmation. All records are maintained for the minimum five-year retention period required by CBP.
Does Your Business Qualify for Drawback?
More businesses qualify than realize it. If any of the following applies to your operation, contact AIT Tahipo for a free screening.
You Import & Export the Same Goods
If you import products and later export them without materially altering them, you likely qualify under Unused Merchandise Drawback.
You Manufacture for Export
Companies that use imported materials to produce goods that are then exported may qualify under Manufacturing Drawback provisions.
You Receive Defective or Non-Conforming Goods
If imported goods fail to meet quality standards and are returned or destroyed under CBP supervision, Rejected Merchandise Drawback may apply.
You Import from High-Tariff Countries
Businesses paying Section 301, Section 232, or the new reciprocal tariffs on imports that are subsequently exported have expanded drawback opportunities under confirmed CBP guidance.
You Handle Retail Returns or Unsold Inventory
Retailers that import goods, hold unsold inventory, and destroy or re-export it may qualify — including under substitution provisions that don’t require tracking specific units.
You’re a 3PL, Freight Forwarder, or Contract Manufacturer
Supply chain intermediaries can qualify for drawback with proper transfer of rights documentation. You don’t need to be the original importer of record.
Why Importers Choose AIT Tahipo for Drawback
A boutique brokerage with the systems, compliance workflows, and direct broker access that large firms rarely offer.
Licensed & Compliant
AIT Tahipo LLC is a licensed U.S. customs brokerage. All claims are filed electronically through ABI/ACE in strict accordance with 19 U.S.C. § 1313 and 19 C.F.R. Part 190 (TFTEA). No shortcuts, no shortcuts — just clean, defensible filings.
End-to-End Management
From the free consultation through the final refund, AIT Tahipo handles every step. You don’t need drawback expertise on staff. You don’t need filing software. We handle it all.
Affordable Rates
Drawback processing should not cost more than it recovers. AIT Tahipo offers transparent, affordable pricing — flat-rate and contingency options available. Get a fee quote during your free consultation.
Direct Broker Access
No call centers. No ticket queues. You work directly with a licensed broker who knows your account and keeps you informed at every stage of the process — from privilege application to liquidation notice.
Pre-Filing Accuracy Review
Every claim undergoes a thorough pre-submission audit. CBP returns entire submissions that contain a single error — a problem we eliminate before it costs you time and refund eligibility.
Current on Tariff Policy
Drawback eligibility for Section 301, Section 232, and reciprocal tariffs is actively evolving. AIT Tahipo monitors CBP’s Cargo Systems Messaging Service (CSMS) and policy updates continuously to ensure every eligible dollar is captured.
Documentation Required for a Drawback Claim
Drawback is a documentation-intensive process. All supporting documents must be uploaded to CBP’s Document Imaging System (DIS) at the time of claim submission. Here is what is typically required — AIT Tahipo provides a complete checklist tailored to your claim type.
- CBP Form 7501 (Entry Summary) — proof that duties were paid at import
- Commercial Invoices — for both imported and exported goods
- Bills of Lading / Air Waybills — verifying international shipment
- Proof of Export — carrier-signed B/L, export shipment confirmation, or CBP Form 7553
- Production / Inventory Records — for manufacturing claims, showing how imported materials were used
- HTS Classification Data — especially for substitution claims (8-digit match required)
- Transfer of Rights / Waiver of Drawback — if the filer is not the original IOR or exporter
- CBP Form 7553 — for destructions or exports requiring prior notice
- Destruction Certificate — for merchandise destroyed rather than exported
All records must be retained for at least five years after claim liquidation per CBP requirements.
Don’t Have All Your Documents?
Many businesses start the drawback conversation without a complete document archive. That’s normal — and not a reason to wait.
AIT Tahipo will help you identify which documents you have, which can be reconstructed from CBP ACE reports and carrier records, and which gaps may affect eligibility. We work with your team and your existing recordkeeping systems to build the strongest possible claim from what you have.
Call or email today to start with a free, no-pressure consultation.
📞 (562) 503‑5778 — Call NowFrequently Asked Questions About Duty Drawback
Official Drawback Resources
CBP Drawback Overview
The official CBP page covering all drawback types, filing instructions, privilege applications, and ACE/ABI requirements.
Visit CBP.gov →CBP Drawback FAQs (ACE)
CBP’s official FAQ covering electronic filing requirements, document upload procedures, and ACE drawback claim mechanics.
Read the FAQs →19 C.F.R. Part 190 — TFTEA Regulations
The Federal Register final rule (December 2018) governing all TFTEA drawback claims. The authoritative regulatory reference.
Read 19 C.F.R. § 190 →CBP CSMS — Trade Messaging
CBP’s Cargo Systems Messaging Service — where the latest drawback policy updates, tariff eligibility confirmations, and ACE guidance are published.
Check CSMS →AIT Tahipo — LACBFFA Member
AIT Tahipo LLC is a verified member of the Los Angeles Customs Brokers and Freight Forwarders Association.
View Membership →AIT Tahipo — Chamber of Commerce
AIT Tahipo LLC is a registered member of the Palos Verdes Peninsula Chamber of Commerce.
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