What is duty drawback?

Duty drawback is the recovery of U.S. duties paid on merchandise that enters and subsequently leaves the commerce of the U.S. with the intent to join the commerce of Another Country. Drawback claims are reviewed and liquidated by U.S. Customs and Border Protection and payment, once approved, is made via check by the U.S. Treasury.

Drawback can be filed against merchandise that has changed it's essential character (i.e. manufactured goods), and may be filed by any party that has maintained ownership and control of the merchandise provided they obtain the proper waiver of drawback rights from the other parties in the transaction.