U.S. Customs and Border Protection (CBP) has confirmed that duty drawback is available for the new reciprocal tariffs imposed under the Executive Order issued April 2, 2025. These tariffs, which went into effect on April 5, 2025, add an additional 10% ad valorem duty under HTSUS classification 9903.01.25 on most imported goods unless specifically exempted.
What This Means for Importers and Exporters
If your business imports merchandise now subject to the 10% reciprocal tariff and later exports it, destroys it, or uses it in a qualified manufacturing process, you may be eligible to recover these duties through drawback.
CBP’s confirmation states: “Drawback is available with respect to the additional duties imposed pursuant to the Executive Order.”
This opens up new recovery opportunities for companies participating in a duty drawback program, especially those involved in:
- Unused Merchandise Drawback (Direct Identification or Substitution)
- Manufacturing Drawback
- Destruction under CBP supervision
Take Action Now
To take advantage of this new drawback eligibility, companies should:
- Ensure accurate HTSUS classification of impacted goods (particularly 9903.01.25)
- Track additional duty payments separately in entry summaries
- Maintain clear documentation for eligible exports, destruction, or manufacturing uses
- Coordinate with drawback specialists to update claims strategies accordingly
How J.M. Rodgers Can Help
As one of the few true duty drawback experts in the U.S., J.M. Rodgers is already helping clients navigate the impact of this new tariff structure. Our team ensures your imports are tracked accurately, your documentation meets CBP requirements, and all eligible drawback is recovered.
Whether you’re new to drawback or looking to optimize an existing program, we can help maximize your refunds—especially in response to new duty burdens like this.
Need Help with Drawback on Reciprocal Tariffs?
Contact us today to review your eligibility and build a plan to recover your duties.
