# Destroyed Goods Drawback: When CBP Watches You Destroy Inventory

Source: https://landedsight.com/blog/2026-11-10-destroyed-goods-drawback/

Cross-border operations guide · November 8, 2026


**Short answer:** Imported goods destroyed under CBP supervision qualify for drawback of up to 99 percent of the duties paid, the same as goods exported. The destruction has to be supervised or approved, the notice of intent has to be filed before the destruction, and the record has to show the goods were destroyed, not just disposed of. Destroy the goods first and file later, and there is no claim.

## Destruction is an export, if CBP watches it

Duty drawback refunds up to 99 percent of the duties, taxes, and fees paid on imported merchandise that is subsequently exported from the United States or destroyed under CBP supervision. The destruction branch is the one importers forget, because the goods never leave the country, and the refund feels like it should not apply. It does, under 19 USC 1313, and the current regulations are in 19 CFR Part 190. The goods have to be destroyed, not just disposed of, and the destruction has to be under CBP supervision or with CBP approval, so that CBP can verify the goods that were destroyed are the goods the duty was paid on.

The cases that qualify are the ones where export does not make sense. Goods that are defective, damaged, obsolete, or recalled, and that cannot be sold or returned to the supplier, are destroyed rather than exported, because the cost of shipping them back exceeds their value. Goods that are destroyed for safety or regulatory reasons, such as products that fail a safety test or cannot legally be sold, qualify the same way. The destruction has to be complete: the goods have to be rendered unusable, not just thrown away, and the method has to be documented. [Rejected merchandise drawback covers goods that come back defective](https://landedsight.com/blog/2026-11-09-rejected-merchandise-drawback-defective/), and destruction is the branch for the goods that cannot go back at all.

## The notice that has to be filed first

The first mistake is missing the filing window, and the destruction branch has its own version of it. You have five years from the import date to export or destroy the goods and file the claim, but the notice of intent to destroy has to be filed before the destruction, not after. CBP wants to know ahead of time, not after, because the supervision has to be arranged and the officer has to be present or the destruction has to be approved in advance. Destroy the goods first and file later, and there is no claim, because there is nothing for CBP to verify. The notice is the claim's foundation, and the foundation has to be laid before the goods are gone.

The second mistake is poor record-keeping. If the import and destruction records do not match, or if they are scattered across departments, it is hard to prove eligibility. The record has to show the entry summary with the duty paid, the inventory records showing the goods were received and tracked, and the destruction record showing what was destroyed, when, how, and who watched. The destruction certificate, the photos, and the officer's report are the export proof for this branch, and without them the claim is a request for a refund with no evidence the goods are gone. [Unused merchandise drawback is the 99 percent refund explained](https://landedsight.com/blog/2026-11-08-unused-merchandise-drawback-99-percent/), and the destruction branch works the same way: the refund is 99 percent of the duty, taxes, and fees paid, and the remaining 1 percent stays with the government.

## What destruction actually means

Destruction means the goods are rendered commercially valueless, not just removed from inventory. Shredding, crushing, incineration, or chemical destruction, depending on the product, and the method has to be appropriate to the goods: a textile shredded, an electronic device crushed and its components separated, a chemical neutralized. Simply throwing goods in a dumpster is not destruction, because the goods could be recovered and sold, and CBP will not pay a refund on goods that might still enter commerce. The destruction has to be witnessed or documented to CBP's satisfaction, and the documentation is the claim.

The check before you destroy is the same as the check before you export: sort the charges on the entry summary into the duties that qualify and the duties that do not. Section 232 duties are barred from drawback, and IEEPA duties go through a separate refund process. The destruction claim files only the qualifying duties, with the notice filed first, the supervision arranged, and the record kept for three years after the claim is paid. [Manufacturing drawback is the same program in a different form](https://landedsight.com/blog/2026-11-07-manufacturing-drawback-built-exported/): the goods are built and exported, and the refund turns on the record, not on the goods. Destruction is the branch for the goods that cannot be built or exported, and the record is the whole claim.

## Frequently asked questions

### Does drawback cover goods I destroy instead of exporting?

Yes. Imported goods destroyed under CBP supervision qualify for drawback of up to 99 percent of the duties, taxes, and fees paid, the same as goods exported. The destruction has to be supervised or approved by CBP.

### Do I have to tell CBP before I destroy the goods?

Yes. The notice of intent to destroy has to be filed before the destruction, so CBP can arrange supervision or approve the destruction in advance. Destroy first and file later, and there is no claim.

### What counts as destruction?

Rendering the goods commercially valueless: shredding, crushing, incineration, or chemical destruction, as appropriate to the product. Throwing goods in a dumpster is not destruction, because they could be recovered and sold.

### How much drawback can I recover on destroyed goods?

Up to 99 percent of the duties, taxes, and fees paid. The remaining 1 percent stays with the government. Section 232 duties and IEEPA duties do not qualify and must be excluded from the claim.