Section 301 Duty Drawback: Claiming Back China Tariffs on Export

Key Points

• Section 301 duties paid on goods of China are eligible for drawback under 19 U.S.C. 1313 and 19 CFR part 190 when the goods (or qualifying substitutes) are exported or destroyed.
• Section 232 duties are different: the metal proclamations made them ineligible for drawback, so do not assume the two programs behave alike.
• The refund is 99 percent of the Section 301 duty paid on the designated entry; for substitution claims it is 99 percent of the lesser of that duty or the duty that would apply to the substituted goods.
• Claims succeed or fail on records: you must tie each export to the specific entry that paid the 301 duty.
• IEEPA duties are refunded through a separate path, not through drawback.

On this page

1. Which Section 301 duties are eligible for drawback
2. How the 99 percent refund is calculated
3. Drawback paths: unused merchandise, manufacturing, and substitution
4. Records that tie exports to Section 301 entries
5. Drawback versus IEEPA refunds
6. What importers should do
7. Key references

Yes, you can claim Section 301 duties back through drawback. If you paid Section 301 duties on imported goods of China and later export or destroy those goods, or export or destroy commercially interchangeable goods under a substitution claim, you can recover 99 percent of the eligible duty. The statute is 19 U.S.C. 1313 and the implementing rules are in 19 CFR part 190.

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

Which Section 301 duties are eligible for drawback

Section 301 duties on goods of China are treated as regular duties for drawback purposes. That means the additional ad valorem duties collected under the Chapter 99 headings, on top of the ordinary column 1 duty, can be part of a drawback claim. You can confirm which headings applied to an entry by reviewing the entry summary and the Chapter 99 notes in the Harmonized Tariff Schedule.

Section 232 is not the same

Do not extend this rule to other tariff programs. The Section 232 metal proclamations made those duties ineligible for drawback. If an entry paid both Section 232 and Section 301 duties, only the Section 301 portion can support a claim. For an example of how a Section 232 heading is structured, see 9903.81.87 (Ended): Section 232 Steel Derivatives Heading Explained.

How the 99 percent refund is calculated

Drawback does not return the full duty. The calculation depends on the claim type.

• Direct identification claims: the refund is 99 percent of the Section 301 duty paid on the designated entry.
• Substitution claims: the refund is 99 percent of the lesser of the Section 301 duty paid on the designated entry or the duty that would apply to the substituted goods.

The "lesser of" rule matters for substitution. If the goods you export are not subject to the same Section 301 duty, the duty that would apply to them can cap the refund below what you paid on the designated import.

For program basics, claim types, and filing timelines, see Duty Drawback Program: Types, 99% Refund, and Filing Rules. In general, claims must be filed within five years of the date of importation of the designated merchandise.

Drawback paths: unused merchandise, manufacturing, and substitution

Unused merchandise drawback

Use this path when imported goods of China are exported or destroyed without being used in the United States. The goods must stay unused and be exported or destroyed under CBP supervision within the regulatory time limits. Direct identification ties the exported item to the imported item. Substitution allows different but qualifying goods to stand in for the imported ones.

Manufacturing drawback

Use this path when imported goods of China are used in manufacturing or production in the United States and the resulting article is exported or destroyed. The claimant must show the imported material was used in making the exported article, supported by the manufacturer's records. Manufacturing claims can be direct identification or substitution.

Substitution and the eight-digit HTS number

Substitution is the path that makes Section 301 drawback most useful. The substituted goods generally must classify under the same eight-digit HTS subheading as the designated imported goods (or meet the commercial interchangeability and related standards in the regulations). Because the match is made on the eight-digit number, the exported goods do not need to be of Chinese origin. A domestic or non-China product can support a claim against Section 301 duties paid on China entries if it meets the substitution standard.

Records that tie exports to Section 301 entries

A drawback claim is a tracing exercise. You need records that show, for each claim line:

• The import entry number, entry date, line, HTS classification, and the Section 301 duty actually paid on that line.
• Proof that the designated goods were of Chinese origin and subject to the Section 301 heading, including the Chapter 99 number reported on the entry.
• Inventory, production, or transfer records linking the imported goods (or the substituted goods) to the exported or destroyed goods.
• Proof of export or destruction, such as export filings, bills of lading, or destruction documentation.
• For manufacturing claims, a record of how the material was consumed in production, and for substitution, the basis for treating the goods as interchangeable.
• Evidence of the right to claim, including any transfer of rights from the importer to the exporter or manufacturer.

Weak entry data is the usual problem. Duty paid by line is the figure that sets the refund, so confirm it against your entry summaries before designating entries. Reports in ACE can help; see ACE Reports Data Dictionary: What Each Report Field Means. For the filing mechanics, privileges, and recordkeeping duties, see How to Apply for Duty Drawback and the CBP drawback page.

Drawback versus IEEPA refunds

Drawback and IEEPA refunds are separate. Drawback is a statutory export-based program: you receive a refund because the goods left the U.S. customs territory or were destroyed. IEEPA duties are refunded through a different path that does not depend on export. If you are trying to recover IEEPA China duties, read the IEEPA tariff refund guide instead. A heading such as the one covered in 9903.01.23 (Ended): IEEPA China Fentanyl Exemption Heading Explained is part of the IEEPA structure, not the Section 301 structure.

Keep the two tracks apart in your files. An entry can carry both IEEPA and Section 301 duties, and each one is recovered under its own rules.

What importers should do

• Pull entries of China-origin goods that paid Section 301 duty and match them against export and destruction records by eight-digit HTS number.
• Separate Section 301 duty from Section 232 and IEEPA duty on each entry line so that only eligible duty is claimed.
• Build the tracing records (inventory, production, and export proof) before filing, and track the five-year clock from each importation date.
• Decide whether to file in-house or through a broker or drawback specialist, and put any transfer of rights in writing.

Key references

• 19 U.S.C. 1313: the drawback statute covering unused merchandise, manufacturing, and substitution.
• 19 CFR part 190: CBP regulations for modernized drawback claims and records.
• CBP drawback program page: agency guidance on filing drawback claims in ACE.
• Harmonized Tariff Schedule: the official schedule for eight-digit classifications and Chapter 99 headings.
• Federal Register: the official publication for Section 301 notices and CBP rules.