Duty Drawback & Recovery

Duty drawback is a refund of duties paid on imported goods that are subsequently exported or returned. Swap automatically processes duty drawback on qualifying international returns, helping brands retain more margin.

Duty drawback timelines vary by country. In the US, claims are typically processed within 4–12 months by CBP, though accelerated programmes exist. In the UK and EU, timelines are generally shorter. Swap automatically reclaims duties on returned cross-border orders, managing the claim process on behalf of the brand rather than requiring manual filing.

Duty drawback on export is calculated as the refund of import duties paid on goods that are subsequently re-exported (or returned cross-border). The calculation is typically: (Import duty paid × quantity exported/returned) × applicable drawback percentage. Swap automates this calculation and claim process for all cross-border returns processed through its platform.

Useful tools for duty drawback for exporters include customs management systems with drawback tracking, trade compliance platforms with HS code management, and automated claim filing integrations with customs authorities. Swap simplifies duty drawback for DTC brands by automatically identifying eligible returns and managing the reclaim process, recovering a revenue stream that many brands leave on the table.

Duty drawback is most beneficial when: goods are imported with significant duty paid, a high proportion of products are subsequently re-exported or returned cross-border, and the per-unit duty amount is material enough to justify the claim cost. Swap's automated drawback on returns is most valuable for fashion, electronics, and luxury brands with high international order volumes and significant duty rates on their products.