Manufacturing Direct Identification Drawback
How Manufacturing Drawback Works in the United States: Step-by-Step
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Step 1: Identifying Eligible Imported Materials
Only imported materials that have paid duties or fees can qualify.
These materials must be used in the production of goods that are ultimately exported or destroyed.
Typical eligible items include:
- Raw materials
- Components
- Semi-finished goods
These materials must be used in the production of goods that are ultimately exported or destroyed.
Typical eligible items include:
- Raw materials
- Components
- Semi-finished goods
Step 2: Documenting the Manufacturing Process
CBP requires clear documentation showing how imported inputs flow into the finished product. Manufacturers often use:Bills of materialsProduction logsInventory records
Step 3: Exporting or Destroying the Finished Goods
Exports must be:Shipped outside the U.S.Properly documented with commercial invoices, bills of lading, and export declarations
Step 4: Filing a Duty Drawback Claim
Companies submit detailed claims through ACE (Automated Commercial Environment). Only after verification can CBP issue a refund.
