Duty Drawback for FBA Importers in 2026: Section 301 Yes, Most Section 232 No, and Why Amazon Disposal Is Not Destruction

By Bernardo Campelo, Forbes Business Council E-Commerce Leader, Amazon SPN Certified provider, Amazon SP-API authorized partner, and Founder of PrepVia.

As of October 29, 2026, an importer that paid duty on goods and then exports them, or destroys them under CBP supervision, within five years of import can claim back 99 percent of the eligible duties, taxes and fees it paid, as long as the goods were not used in the United States first. That is unused merchandise drawback under 19 U.S.C. 1313(j)(1), and CBP's drawback regulations in 19 CFR part 190 were last amended in July 2021, according to the eCFR's version history. What changed in 2026 is how much duty sits on an FBA importer's entries, and which of those duties the rule can return.

Since 12:01 a.m. Eastern on July 24, 2026, products of 60 economies, China included, face a Section 301 duty of 10% or 12.5%, for some economies net of the normal duty rate and with listed exemptions, under USTR's notice at 91 FR 47318. CBP's drawback FAQ says Section 301 duties qualify. Most Section 232 duties do not, but the wood products and pharmaceutical proclamations say drawback is available.

For brands that sell into Canada and Mexico from U.S. FBA inventory, or that clear out stock they no longer want, the catch is the paperwork.

Every date and name below was checked on October 29, 2026 against the U.S. Code, the eCFR, the Federal Register, cbp.gov, CBP's Cargo Systems Messaging Service, the U.S. tariff schedule and Amazon's own pages, linked where they first appear. CBP updates its IEEPA refund pages often, and each new Section 232 proclamation sets its own drawback rule. This is general information, not customs or legal advice: take any drawback program to a licensed customs broker or a drawback specialist before you file.

What Drawback Refunds, and Who Holds the Right to Claim

The statute requires that the goods be exported or "destroyed under customs supervision" within five years of import and before the claim is filed, without being "used within the United States" first. The refund is 99 percent: 19 CFR 190.51 gives the example of $1,000 in eligible duties producing a claim for $990. Under 19 CFR 190.3, ordinary duties, merchandise processing fees and harbor maintenance taxes count; antidumping and countervailing duties never do.

The claim must be filed "not later than 5 years after the date on which merchandise on which drawback is claimed was imported," or it is abandoned. Prep work does not spend the right: the statute lists testing, cleaning, repacking, inspecting, sorting, relabeling and unpacking among the operations that are not a "use" of the merchandise, as long as they do not amount to manufacture. Kits and bundles are not named, so ask before you assume.

Under 19 CFR 190.33, "the exporter or destroyer will be entitled to claim drawback," and anyone else, the importer included, needs a certification signed by the exporter or destroyer that waives the right, filed with each claim. 19 CFR 190.2 defines the exporter as the person who, "as the principal party in interest in the export transaction, has the power and responsibility for determining and controlling the sending of the items out of the United States."

Claims are filed electronically through ABI, by the claimant, a licensed customs broker or a service provider, never through the ACE Portal, according to CBP's drawback FAQ for ACE. CBP's trade remedies drawback FAQ says that, as with any drawback claim, the import entries must be liquidated and past the 180-day protest period, and the specialist's review complete, before the refund is paid. Accelerated payment, which pays estimated drawback before the drawback entry liquidates, needs prior approval and a bond. Since February 6, 2026, CBP pays refunds electronically under its electronic refunds rule, and claim records must be kept for three years after the claim liquidates (19 CFR 190.15).

Section 301: Yes, and the Forced-Labor Layer Has No Carve-Out

The trade remedies drawback FAQ, last modified March 7, 2025, cites CSMS Message 18-000419 and answers "yes Section 301 duties are eligible for duty drawback."

The forced-labor action is the 2026 layer that reaches 60 economies; a separate Section 301 action has also covered products of Brazil since July 22, 2026, under heading 9903.05.01. CBP's CSMS # 69326983 puts products of China under heading 9903.05.31 at 12.5%, and most Section 232 articles are exempt. U.S. note 52 in Chapter 99 of the tariff schedule keeps covered goods subject to the other additional duties in the same subchapter, where the 2018 China Section 301 headings also sit, except where the note says otherwise. Our guide to rebuilding landed cost after July 24, 2026 walks through the layers.

Nothing in the forced-labor action limits drawback, and CBP has confirmed it. ACE briefly rejected drawback on the new headings after an August 12, 2026 update; CSMS # 69567203 of August 18 corrected that: "HTSUS classifications 9903.05.01 associated with Section 301 Duties on Certain Products from Brazil and 9903.05.20-9903.05.84 associated with Section 301 Forced Labor Import Duties are drawback eligible."

Section 232: Mostly No, Proclamation by Proclamation

CBP's drawback pages still give the 2018 answer. The FAQ says goods subject to Section 232 "are ineligible for refund of 232 duties, per Presidential Proclamation 9739 and 9740," two 2018 proclamations on aluminum and steel, and CBP's Drawback in ACE page says: "Please note, Section 232 duties are not available for drawback." The 2025 and 2026 proclamations each set their own rule, and they do not all agree.

Most say no. Six use the same sentence: "No drawback shall be available with respect to the duties imposed pursuant to this proclamation." Three others allow only manufacturing drawback under 19 U.S.C. 1313(a) and (b), which covers articles made in the United States with imported merchandise, not finished goods exported unused. The April 2026 metals proclamation is explicit: "no other drawback claims shall be available."

Two go the other way. The timber, lumber and derivative products proclamation, which covers softwood lumber, upholstered wooden furniture and completed kitchen cabinets and vanities, says "Drawback shall be available," and CBP's CSMS # 66492057 confirms that drawback "continues to be available, in accordance with applicable regulations in 19 C.F.R. part 190." The pharmaceuticals proclamation uses the same words, repeated in CBP's CSMS # 70054007 of September 28, 2026.

The newest two are dated October 28, 2026: wind turbines, published that day, and robotics and industrial machinery, set for the Federal Register on November 2. Like the critical minerals and aircraft proclamations, they order negotiations and impose no new duty, so there is nothing under them to claim back. Check CBP's guidance on polysilicon, and the Federal Register before you rely on this table.

Entries That Carried IEEPA Duties: CAPE First, Drawback Second

If an entry carried IEEPA duties, CBP's CAPE process, launched April 20, 2026, is how those duties come back for the entries it accepts, and the order of filings matters. CBP's CAPE trade information notice, last updated July 10, 2026, lists "Entries on a drawback claim" among the entries "not currently accepted on a CAPE Declaration." CBP's IEEPA duty refunds page, last modified October 28, 2026, shows the validation error "Entry on Drawback," defined as "Entry cannot be on a drawback entry," and lists "Entries designated on a drawback claim" among the entry types CBP is evaluating for later deployments.

The same page answers the timing question, in an entry updated May 20, 2026: "You are encouraged to place entry summaries that are eligible for drawback on your CAPE Declaration and submit them prior to filing a drawback claim." The entry must also be in liquidation or reliquidation status before it goes on the drawback claim. In Phase 1, CAPE takes unliquidated entries and entries liquidated within the preceding 80 days, so that step runs on its own clock. An entry liquidated more than 80 days ago fails CAPE validation today, and CBP lists entries whose liquidation is final only among the types it is evaluating for later deployments, so the sequence below works only inside that window.

For an entry with both IEEPA and Section 301 duty, the sequence is: CAPE Declaration first, then liquidation or reliquidation, then the drawback claim. Our IEEPA refund guide covers the CAPE phases.

Why an FBA Disposal Order Is Not Destruction Under CBP Supervision

For drawback, destruction "means the destruction of articles or merchandise to the extent that they have no commercial value," under 19 CFR 190.2. It includes a process that recovers materials, but under 19 U.S.C. 1313(x) the value of the recovered materials that accrues to the claimant comes off the value of the destroyed merchandise on which the refund is figured, not off the refund itself. So recycling is not the problem. Control is.

19 CFR 190.71 sets the procedure. At least 7 working days before the intended destruction, the claimant files CBP Form 7553 "with the CBP port where the destruction is to take place, giving notification of the date and specific location where the destruction is to occur." CBP has 4 working days to say whether it will witness; if it does not answer, the goods may be destroyed and are "deemed to have been destroyed under CBP supervision." When CBP does not attend, the evidence "must be issued by a disinterested third party (for example, a landfill operator)."

Section F-7.3 of the Amazon Services Business Solutions Agreement says that when you ask Amazon to dispose of units, "we may dispose of these Units as appropriate based on the inventory (e.g., by selling, recycling, donating, or destroying it) and retain any proceeds we may receive from the disposal," and "Title to each disposed Unit will transfer to us (or a third party we select such as a charity)." Amazon's FBA Donations page adds: "You’re enrolled in FBA Donations by default." The nonprofits that receive donated units "may keep, sell, or redistribute donated goods."

Side by side, the disposal order cannot deliver what 190.71 asks for. You do not set the date or the place, the unit may be donated or sold rather than destroyed, and title passes to Amazon. That is a reading of the documents, not a CBP ruling, but nothing in an FBA disposal order produces a Form 7553 or a third-party destruction record.

The route that fits the regulation runs through a removal order. Amazon's help page on removing inventory offers a return-to address, donation or recycling at the fulfillment center, or liquidation; only the return-to address keeps the goods in your hands. Amazon "is unable to return inventory stored in Amazon's fulfillment centers to an address outside of the original import country," says its import and export inventory page, so the units come out to a U.S. address first, where the claimant can file Form 7553 and destroy them with a third-party record, or export them. See our guides to removal orders and aged inventory.

Exporting for Drawback: The Notice Before, the Proof After

For an export, Form 7553 goes in early. Under 19 CFR 190.35, the claimant or the exporter files it "at least 5 working days prior to the date of intended exportation unless CBP approves another filing period or the claimant has been granted a waiver of prior notice," and CBP answers within 2 working days whether it will examine the goods. CBP's drawback overview adds that the form "must be presented to CBP prior to any action taken by the company regarding exportation or destruction."

A missed notice has a narrow fix: a written application under 19 CFR 190.36, a procedure that "may be used by a claimant only once, unless good cause is shown." A company that exports often can apply instead for a waiver of prior notice under 19 CFR 190.91.

Proof of export has a checklist. 19 CFR 190.72 requires the date of export, the name of the exporter, a description of the goods, the quantity and unit of measure, the Schedule B or HTS number and the country of ultimate destination, backed by supporting documents that "include, but are not limited to" records from the exporting carrier "such as a bill of lading, air waybill, freight waybill, Canadian Customs manifest, and/or cargo manifest," an export system CBP has approved for drawback, or official postal records. Every export claim also certifies that "the exported article is not to be relanded in the United States or any of its possessions without paying duty."

Remote Fulfillment to Canada and Mexico: What the USMCA Claim Asks For

Remote Fulfillment, covered in our guide to the program, fills Amazon.ca, Amazon.com.mx and Amazon.com.br orders from your U.S. FBA inventory. Amazon's Remote Fulfillment help page says customers "take ownership after the shipping company picks up the items from the US fulfillment center," and its program page says "Customers pay any import duties, taxes, and fees as the importer of record." The program requires FBA Export, and enrolling in FBA Export authorizes Amazon and its affiliates to export goods "on your behalf," including signing a commercial invoice.

The rules favor goods that leave the country in the same condition. Under 19 CFR 182.45, a good "subsequently exported to Canada or Mexico in the same condition is eligible for drawback under 19 U.S.C. 1313(j)(1) without regard to the limitation" that otherwise caps USMCA drawback at the lower of the U.S. duties and the duties paid in Canada or Mexico. Packing, repackaging, labeling, sorting and inspecting do not change the condition, provided they do not materially alter the good. Substitution drawback, claiming on other goods under the same 8-digit HTS number, is not available for exports to Canada or Mexico.

The paperwork is where it gets hard. For an unused merchandise claim, 19 CFR 182.47 requires "The foreign entry number and date of entry, the HTSUS classification for the foreign entry, the amount of duties paid for the foreign entry and the applicable exchange rate," information to trace the goods after import, notice to CBP "at least five business days in advance of the intended date of exportation," and carrier documents that "establish fully the time and fact of exportation, the identity of the exporter, and the identity and location of the ultimate consignee of the exported goods." The Canadian or Mexican duty can be shown with the Canadian entry and its K-84 Statement or Detailed Coding Statement, the Mexican pedimento, the final duty determination, or "An affidavit, from the person claiming drawback, which is based on information received from the importer of the good in Canada or Mexico." On a Remote Fulfillment order, that importer is your customer.

Then there is the exporter. For USMCA claims, 19 CFR 182.48 says: "The person named as exporter on the notice of exportation or on the bill of lading, air waybill, freight waybill, Canadian or Mexican customs manifest, cargo manifest, or certified copies of these documents, will be considered the exporter and entitled to drawback." Amazon's Remote Fulfillment and FBA Export help pages do not say whose name goes on those documents, and they do not mention drawback. Whether your company is the exporter on these orders, or needs a waiver from another party, is an open legal question for your broker or a CBP ruling.

"A Remote Fulfillment order to Canada leaves the country, but the drawback paper does not come with it. CBP wants notice before it ships, a carrier record that names the exporter and the customer's Canadian entry. The sale proves none of that."

Bernardo Campelo, Founder of PrepVia

Remote Fulfillment returns "are sent back to the U.S.," so a unit claimed as exported can come back, against a certification that it will not be relanded without paying duty. And the Amazon Fulfilled Shipments report lists the shipment date, SKU, quantity shipped, destination country, carrier and tracking number, with up to one month of data per request. That is a trail to start from; whether CBP accepts it as proof of export, the regulations do not say.

Where a Prep Center Fits

Drawback is a customs filing, and PrepVia is not part of it. PrepVia does not file drawback claims or Form 7553, and it does not export goods or destroy them under CBP supervision.

It fits at the physical step in the middle. When you pull units out of FBA with a removal order to a U.S. address, a prep center can be that address. PrepVia receives removal shipments at 8507 NW 72nd St, Miami, FL 33166, and discrepancies are reported within 24 hours of arrival, with photos. It also handles returns processing and kit or bundle disassembly. Those receiving records are business records; whether they support a drawback claim is a question for your broker.

On the import side, PrepVia receives imported containers after customs release, routes the goods into Amazon FBA, and does the labeling and repacking FBA requires.

Frequently Asked Questions

Can we claim drawback on the Section 301 forced-labor duty?

Yes, if the goods qualify. CBP's drawback FAQ says Section 301 duties are eligible, and CSMS # 69567203 of August 18, 2026 says the forced-labor headings, 9903.05.20 to 9903.05.84, and Brazil's 9903.05.01 are drawback eligible.

Are Section 232 duties ever refundable through drawback?

For goods exported or destroyed unused, yes, under two proclamations: timber, lumber and derivative products (10976) and pharmaceuticals (11020). The metals, autos and auto parts, semiconductor, heavy vehicle and drone proclamations either bar drawback or allow only manufacturing drawback, which covers goods made in the United States from imported inputs.

Does an FBA disposal order count as destruction for drawback?

Not on the face of the documents. 19 CFR 190.71 requires a Form 7553 filed at least 7 working days ahead, with the date and location, and third-party evidence if CBP does not attend. Under the Business Solutions Agreement, Amazon may sell, recycle, donate or destroy disposed units and takes title to them.

Can a Remote Fulfillment order to Canada earn drawback?

The goods are exported, and same-condition goods exported to Canada or Mexico can get drawback without the USMCA cap. But the claim needs the Canadian or Mexican entry data, from the entry documents or an affidavit based on information from the importer there, carrier documents that identify the exporter, and notice to CBP five business days before export. Who the exporter is on those orders is an open question for your broker.

What comes first if an entry carried IEEPA duties?

The CAPE Declaration, if CAPE still takes the entry: unliquidated, or liquidated within the last 80 days. CBP's CAPE notice says entries on a drawback claim are not currently accepted, and CBP's FAQ says the entry must be in liquidation or reliquidation status before it goes on a drawback claim. For an older entry, ask your broker before you file.

How long do we have to file?

Five years from the date of import, and the export or destruction must also happen within that period and before the claim is filed.

Final Take

Drawback did not change in 2026; the duty it can return did. Section 301 duty, including the forced-labor layer CBP confirmed in August, can come back at 99 percent. Most Section 232 duty cannot, with wood products and pharmaceuticals as the exceptions.

The refund depends on paper you have to plan before the goods move: a Form 7553 filed in time and a carrier document that names the exporter, plus, for an entry that carried IEEPA duty and that CAPE still accepts, a CAPE Declaration filed before the drawback claim. An FBA disposal order produces none of it, and nothing in Amazon's Remote Fulfillment pages puts the rest in your hands. Decide which entries and which exits justify a claim, then route the units so the paper exists.