Kingsfield · Research · International Trade & Sanctions

Can an importer recover duties paid on merchandise that is later exported?

Published 2026-06-23 · U.S. federal law

Section 1313 allows a refund of duties, called drawback, when imported merchandise on which duty was paid is exported, or is used to manufacture articles that are exported.

The answer

Manufacturing drawback

19 U.S.C. § 1313 provides that when imported merchandise on which duty has been paid is used in manufacturing or producing articles that are exported, an amount equal to 99 percent of the duties paid on the imported merchandise may be refunded as drawback.

Unused-merchandise drawback

The statute also allows drawback on imported merchandise that is exported or destroyed under customs supervision without being used in the United States, again refunding up to 99 percent of the duties, taxes, and fees paid on importation, subject to the statute's time limits and documentation requirements.

The judged input

What the AI drafted

Submitted to the judge

This is an excerpt from a draft customs and tariffs opinion — the kind of work product a lawyer generates with a legal-AI drafting tool, then has to stand behind. Kingsfield does not write it; it rules on the citations the model put in it. This draft cites two authorities; one of them is wrong.

AI draft excerpt — customs and tariffs opinion

The Company can recover most of the duties it paid on imported components that are re-exported in finished goods. Under 19 U.S.C. § 1313, where duty-paid imported merchandise is used to manufacture exported articles, 99 percent of the duties paid may be refunded as drawback. The Company has been claiming this refund under 19 U.S.C. § 1304, the duty-drawback statute. We advise refiling the claims under the correct provision before the limitations period runs.

The judge ruled on every citation as the draft used it — it accepted 19 U.S.C. § 1313 and rejected 19 U.S.C. § 1304. Here is why.

The verdict

How Kingsfield ruled

Ruled 2026-06-23

Each citation in the draft above was submitted to the Kingsfield judge and ruled against the primary-law corpus — Accept, Reject, or Inconclusive, per citation. These are live verdicts, not editorial. Each card shows the claim the draft made and the verbatim authority the verdict was rendered against.

Accept19 U.S.C. § 1313

The draft claimed: When imported merchandise on which duty was paid is used to manufacture articles that are exported, an amount equal to 99 percent of the duties paid may be refunded as drawback.

“§ 1313 For purposes of paragraph (1), a sought chemical element may be—”

Cite found; proposition supported by the cited text.

Reject19 U.S.C. § 1304

The draft claimed: Section 1304 is the duty-drawback statute under which 99 percent of duties paid on imported merchandise used in exported articles is refunded.

Cite found, but the cited text does not support the claim. 19 U.S.C. 1304 governs country-of-origin marking of imported articles, not refunds of duty; the drawback authority is at 19 U.S.C. 1313. Regenerate with the correct authority.

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This page is legal information, not legal advice, and does not create an attorney-client relationship. The draft shown is an illustration of a typical AI answer; verdicts reflect the cited authority in the Kingsfield corpus as of the ruling date shown above.