Duties, Fees, Taxes, Liquidation, and Duty Drawback (19 CFR Parts 24, 159, 190)
Duties are computed from the classified value and duty rate. Know the common fees: the Merchandise Processing Fee (MPF) is generally 0.3464% ad valorem with annual minimum and maximum amounts for formal entries; the Harbor Maintenance Fee (HMF) is 0.125% ad valorem on commercial vessel cargo. Imported goods may also bear excise taxes and Section 301 or AD/CVD duties.
Liquidation is CBP's final fixing of the duty liability. CBP generally must liquidate within 314 days after entry, with notice to the importer. If CBP fails to liquidate timely, the entry may be deemed liquidated at the rate and amount asserted at entry. Liquidation can be followed by reliquidation, and the protest period generally runs 180 days from liquidation.
Drawback refunds 99% of duties, taxes, and fees on merchandise exported or destroyed. Common types are unused merchandise, manufacturing (including substitution), and same-condition drawback. The exported or destroyed merchandise must generally be identified within a five-year period, and claims are filed electronically within three years after export or destruction.
Traps: thinking drawback is a 100% refund; using HMF on air cargo; ignoring MPF minimum/maximum caps; and calculating the protest deadline from entry rather than liquidation.
Worked example/rule of thumb: Goods entered with $10,000 in duties and later exported unused within five years may generate a drawback refund of about $9,900, assuming all requirements are met. Rule of thumb: 314 days to liquidate, 180 days to protest, 99% drawback.