Import duty savings calculator

High tariffs mean duty-reduction programs are worth real money — but most small importers never use them. Answer a few questions to see which strategies you likely qualify for and roughly how much you could recover or avoid each year.

💸 Duty drawbackUp to 99% of duties refunded on goods you re-export or destroy. ~$8–10B goes unclaimed every year.
🧾 First Sale rulePay duty on the factory price, not the middleman's — savings scale with the markup.
🏭 Foreign-Trade ZoneDefer duty, skip it on re-exports, and cut MPF with weekly entries.

Frequently asked questions

What is duty drawback?

Duty drawback (19 U.S.C. §1313) refunds up to 99% of the duties, taxes and fees you paid on imported goods that are later exported or destroyed — including goods used to make exported products. Section 301 (China) duties are drawback-eligible; Section 232 metal tariffs generally are not. Claims can reach back 5 years.

What is the First Sale rule?

When you buy through a middleman (factory → trading company → you), First Sale valuation lets you declare the lower factory-to-middleman price as the dutiable value instead of the price you paid — cutting duty in proportion to the middleman's markup. It requires documented, arm's-length multi-tier sales.

What is a Foreign-Trade Zone (FTZ)?

An FTZ is treated as outside U.S. customs territory: you defer duty until goods leave for U.S. commerce, pay no duty on goods re-exported from the zone, and can consolidate many entries into one weekly entry (cutting Merchandise Processing Fees). Most small importers use a 3PL's public FTZ rather than operating their own.

Are these estimates exact?

No — they are rough planning estimates to show which strategies are worth exploring. Actual savings depend on your specific products, contracts and documentation. Drawback and FTZ re-export benefits can overlap. Confirm with a licensed customs broker or trade attorney.

Rough planning estimates only — actual savings depend on your products, contracts and documentation, and the strategies can overlap (e.g. drawback vs. FTZ re-export). Drawback excludes Section 232 duties; First Sale and FTZ have strict documentation and eligibility rules. This is not legal or customs advice — confirm with a licensed customs broker or trade attorney. Sources: CBP drawback, First Sale, FTZ (ITA).

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