A duty drawback is a customs refund program that allows companies to recover duties, taxes, and fees paid on imported merchandise that is later exported or destroyed.
While it is most commonly associated with the United States, where the program is formalized and administered by U.S. Customs and Border Protection (CBP), the core concept exists globally under various names and structures. Many countries offer similar mechanisms to encourage exports and reduce the cost of cross-border trade.
While each country may have its own rules and terminology, duty drawback generally falls into three key categories:
When imported goods are not used or altered and are later exported or destroyed, you can reclaim the original duties paid.
Example: Unused servers or networking gear shipped to a client abroad or returned from a U.S. warehouse
If you use imported goods to manufacture or assemble a new product, and the final item is exported, you may qualify for drawback.
Example: Imported chips or drives built into custom server racks and shipped internationally.
If goods are defective, don’t match specifications, or were shipped without authorization, you can file for drawback after export or destruction.
Example: A client rejects non-compliant items or damaged devices upon import.
Not sure if you qualify? Don’t know what records you need?
Check your eligibility and refund potential with us. It’s quick, simple, and free. It could unlock major savings.
Duty drawbacks are an essential part of navigating the volatile U.S. tariff landscape of today. As new tariffs are imposed and existing tariffs evolve, technology firms are facing higher costs on imported components.
Duty drawback is one of the few legal avenues to retroactive tariff relief, especially for those products that are assessed Section 301 and 232 tariffs. By combining duty recovery with smart customs planning, TecEx minimizes these challenges.
When satellite parts are imported into the U.S, they often come with hefty duties, sometimes on shipments worth millions. But the surprising part is that if those parts are launched into space, they may qualify for a full duty refund because U.S. Customs considers space launches legitimate exports.
That means; components integrated into a satellite may qualify under the manufacturing drawback program. Fully built satellites launched with minimal changes may also qualify under the direct identification or substitution drawback programs, depending on the supply chain setup.
The bottom line is that if it leaves orbit, it still counts. And that could mean recovering hundreds of thousands in duties you didn’t know you could reclaim.
According to Elon Musk, SpaceX aims to launch 1 rocket every 6 days. That means there are potentially hundreds of companies with reclaimable duties who might not even know they’re eligible.
Most missions send up payloads worth $60M–$100M, and about 60% of that value comes from non-U.S. companies.
“What surprises people most is how often they already qualify for duty drawback, but no one’s ever taken the time to look. It’s not about being clever. It’s about being compliant and consistent.
That’s where we come in.”– Eben Vorster
Head of Complex Solutions, TecEx
Duty drawbacks are more than just refunds, they’re an opportunity to boost your bottom line, manage tariff-related costs, and unlock hidden capital in your supply chain.
At TecEx, we will:
Identify eligible drawback opportunities across unused goods, manufacturing inputs, and returned or rejected items.
Classify and match imports and exports using both direct and flexible (substitution) methods where allowed.
Build airtight audit trails with complete documentation for customs and regulatory reviews.
Submit claims in full compliance with country-specific programs like the U.S. Duty Drawback, EU Inward Processing, and others.
Support tariff recovery strategies, helping offset rising costs due to trade shifts or ongoing U.S. tariff policies.
Explore the threatened, active, and retaliated tariffs between the US and the world in the ongoing trade war using our new Tariff Tracker. Updated daily.
