How to Apply for Duty Drawback: ACE Claim, Privileges, Records

Key Points

• Drawback claims are filed electronically in ACE under 19 CFR part 190, and each claim must tie imported merchandise and duty paid to a qualifying export or destruction.
• Accelerated payment and waiver of prior notice are privileges you request once through an application, and accelerated payment requires a drawback bond.
• The claim must be filed within five years of the date of importation of the merchandise, so the clock runs from the import side, not the export side.
• Manufacturing drawback depends on a bill of materials and production records that show what was consumed and what was made.
• CBP will ask for the import entry, proof of duty payment, export proof, and records linking the two, so build that file before you submit.

On this page

1. Short answer: how drawback claims are filed
2. Step 1: Confirm the claim qualifies under 19 U.S.C. 1313
3. Step 2: Set up ACE access and the drawback bond
4. Step 3: Apply for accelerated payment and waiver of prior notice
5. Step 4: Assemble the records CBP will ask for
6. Step 5: File the drawback entry in ACE
7. What importers should do
8. Key references

The links in this article go to the primary documents: the statute, the regulations, and the agency pages themselves. Read the source.

Short answer: how drawback claims are filed

To apply for duty drawback, you file a drawback claim electronically in ACE under 19 CFR part 190. The claim links the import entry, where duty was paid, to the export or destruction of the same or qualifying merchandise. Before filing, you need ACE access, usually a drawback bond if you want accelerated payment, and records that prove each link in the chain, all within five years of importation.

For the program's types and the 99% refund concept, see our companion explainer, Duty Drawback Program: Types, 99% Refund, and Filing Rules. This guide focuses on the filing sequence.

Step 1: Confirm the claim qualifies under 19 U.S.C. 1313

The statutory basis for drawback is 19 U.S.C. 1313. Part 190 implements it. Before you build a file, identify which category you are claiming under:

• Manufacturing drawback: imported merchandise is used in manufacturing or production of an article that is then exported or destroyed.
• Unused merchandise drawback: imported merchandise is exported or destroyed without having been used in the United States.
• Rejected merchandise drawback: merchandise that did not conform to sample or specifications, or was defective, is returned and exported or destroyed.

Record needed: a short written summary of the claim category, the merchandise, and the export or destruction event. This keeps the rest of the file organized.

Step 2: Set up ACE access and the drawback bond

Claims are filed through ACE, so the claimant needs an ACE portal account that can file drawback. Brokers filing on behalf of a client need the proper authority from that client.

The drawback bond

A drawback bond is the surety instrument that supports accelerated payment. It protects the government if a claim paid up front is later found not to be payable. If you do not want accelerated payment, you can wait for CBP to review and pay after liquidation, and the bond requirement for the privilege does not apply. Part 190 describes bond requirements in detail.

Record needed: an active ACE account, the filer's identification, and, for accelerated payment, a drawback bond on file.

Step 3: Apply for accelerated payment and waiver of prior notice

Two privileges matter for most claimants, and both are requested through a one-time application rather than on each claim.

• Accelerated payment: CBP pays the claim before liquidation. It requires the drawback bond noted above.
• Waiver of prior notice: normally you notify CBP before an export or destruction so it can choose to witness it. A waiver lets you proceed without giving notice each time for qualifying movements.

Without the waiver, you must plan ahead for destruction events in particular, because destroying merchandise without proper notice can defeat the claim. Part 190 sets out how to apply and what CBP considers.

Record needed: the privilege application itself, evidence of your company's drawback activity and recordkeeping capability, and the bond information.

Step 4: Assemble the records CBP will ask for

Drawback is a records-driven program. Part 190 requires you to be able to show the import, the duty paid, the export or destruction, and the relationship between them. A practical file contains the following.

Import side

• The import entry and entry summary, with the entry number, HTS classification, and line details.
• Proof that duties, taxes, and fees were paid on the entry.
• Records showing who held the right to claim, and any transfer of that right to the exporter or manufacturer.

Export or destruction side

• Export records such as the electronic export filing, bills of lading, airway bills, or carrier proof of departure.
• For destruction, the notice or waiver documentation and a record of the destruction.
• Commercial invoices and packing lists identifying the exported goods.

Manufacturing records

• A bill of materials showing the imported inputs used to make each exported article.
• Production and inventory records showing the imported merchandise was received, consumed, and turned into the finished goods within the permitted window.
• Records connecting the finished goods to the export shipment.

Part 190 also sets a retention period for these records. Keep them for the full period the regulation requires, since CBP can request them well after payment.

Step 5: File the drawback entry in ACE

The claim itself is the drawback entry, filed electronically in ACE. The sequence is:

1. Identify the designated import entries and lines that carry the duty you are claiming.
2. Identify the export or destruction events to match against them.
3. Enter the claim data, including the claim type, the merchandise, and quantities.
4. Certify and submit the entry within five years of the date of importation of the merchandise.
5. Respond to any CBP request for documents.

Drawback processing is handled by CBP's drawback offices, organized as four drawback centers. CBP reviews the claim, may ask for supporting records, and then liquidates it. If you hold accelerated payment, you are paid before liquidation. If not, you are paid afterward.

If you work in ACE reports to pull entry data for your claim, see ES-002: ACE Reports Entry Summary Line Details Explained.

What importers should do

• Check the five-year window from each import date and rank unclaimed entries by how close they are to expiring.
• Decide whether accelerated payment and waiver of prior notice are worth requesting, and put the bond and application in place before you file volume claims.
• Build the import-to-export file, including the bill of materials for manufacturing claims, before you submit, not after CBP asks.
• Set a retention schedule that matches the part 190 requirement for all drawback records.

Key references

• 19 CFR part 190 (eCFR): the drawback regulations covering claims, privileges, bonds, and records.
• 19 U.S.C. 1313: the statute authorizing drawback.
• U.S. Customs and Border Protection: agency landing page for drawback guidance and CSMS messages.
• Harmonized Tariff Schedule: the official schedule for classifying imported and exported merchandise.
• Federal Register: search for drawback rulemaking notices.