Duty Drawback on Exports to Canada or Mexico Under USMCA

Yes. A shipment to Canada or Mexico can be the export that supports a duty drawback claim under 19 U.S.C. 1313, subject to the USMCA drawback rules in 19 U.S.C. 4534 and 19 CFR Part 182, Subpart E. Those rules apply to goods entered for consumption on or after July 1, 2020 (19 CFR 182.41). Part 190 still sets the general claim requirements: a complete claim within five years of import, export evidence, and the usual notices or waiver of prior notice. See how to file a drawback claim.

For a "good subject to USMCA drawback," the refund is generally the lower of (1) the total duties paid or owed in the United States or (2) the total duties paid when the exported good is imported into Canada or Mexico (19 CFR 182.44(a)). That lesser-of comparison is made per exported good (182.44(b)). Antidumping and countervailing duties are not subject to drawback under this subpart (182.42(a)), just as they are not under Part 190. Full (non-capped) drawback still applies to the exceptions in 19 CFR 182.45, including same-condition unused merchandise and certain Canadian or Mexican originating goods that are re-exported.

• Same-condition unused merchandise (19 U.S.C. 1313(j)(1)): an imported good exported to Canada or Mexico in the same condition is eligible for full drawback without the 182.44 cap (19 CFR 182.45(b)). "Same condition" still allows testing, cleaning, packing, sorting, marking, inspecting, preserving, and minor trimming or cutting, as long as the goods are not materially altered (182.45(b)(1)).
• Canadian or Mexican originating goods: dutiable originating goods that are later exported to Canada or Mexico, or used (or substituted and used) as materials in goods exported there, can also get full drawback (182.45(a)).
• Certain rejected merchandise: goods exported because they failed to conform to sample or specification, or were shipped without the consignee's consent, can get full drawback under 1313(c)(1)(C)(i) (182.45(c)).

Unused merchandise that has changed condition may still qualify under 1313(j)(1), but then the 182.44 lesser-of calculation usually applies (182.44(g)).

Often yes, when the imported goods leave the United States unused and in the same condition. That fact pattern is the classic 1313(j)(1) same-condition claim, which USMCA leaves eligible for full drawback of eligible U.S. duties (up to 99%). You still need the right to claim, export evidence (commercial documents plus EEI where required), and a complete claim within five years of import. Watch who holds the drawback right if Amazon, a 3PL, or another party is the exporter of record, and keep transfer records in ordinary business records rather than old certificates of delivery (19 CFR 190.10). Substitution unused merchandise under 1313(j)(2) is a different path from same-condition direct identification; programs that export substitutes rather than the imported units themselves need a broker to confirm whether Part 182 allows that claim to Canada or Mexico.

The same way as other TFTEA claims: entry type 47 through ABI, with the Part 190 completeness rules, plus the USMCA-specific calculation when 182.44 applies. Match imports to exports carefully, because a Canada or Mexico manufacturing claim may recover far less than a same-condition unused claim on the same duty rate. For sizing the opportunity across five years of history, see finding unclaimed drawback.

DrawbackAI by Stable Software does the matching and claim assembly, and customs brokers file the claims for their importer clients under their own filer code and power of attorney. Flat software license. No contingency, no percentage of the refund. See DrawbackAI.