Since President Trump’s reelection, the landscape of international trade has shifted notably. Increased tariffs on numerous imported goods and heightened scrutiny of de minimis shipments have added pressure on foreign online retailers selling B2C to the US. Yet, even in this more demanding environment, strategic solutions exist to manage and reduce tariff exposure effectively.

The recent changes to US tariff rules have been particularly challenging for e-commerce sellers operating abroad. Many are finding that the cost of serving American consumers has surged due to additional duties, brokerage fees, and the tightening of de minimis rules—previously a key advantage that allowed low-value shipments to enter the US duty-free. This shift has complicated pricing models, increased delivery costs, and reduced competitiveness for international sellers. However, with proper planning and the right partners, it’s still possible to streamline import processes and recover much of the duty cost legally through established customs programs.

The Impact of Tariff Policies on B2C Sellers

The return of President Trump to office marked a renewed emphasis on protecting American manufacturing and addressing trade imbalances. This has translated into both higher tariffs on a range of goods and stricter enforcement of trade regulations. The capriciousness of de minimis thresholds, along with expanded product coverage under Section 301 and 232 tariffs, means that goods shipped directly to US consumers from overseas can face steep duties.

For B2C businesses, especially those relying on fast-moving goods like fashion, electronics, or homeware, these tariffs have immediate implications. Margins that were once healthy under duty-free thresholds are now squeezed. Additionally, customs brokerage and clearance procedures have become costlier and more complex, forcing brands to rethink their supply chain architecture.

Consolidation as a Cost Optimization Strategy

One practical solution lies in logistics optimization, like shipment consolidation. Instead of sending hundreds or thousands of small individual parcels to the US each day, sellers can consolidate their daily orders into a single bulk shipment. Once this consolidated shipment enters the US, it is deconsolidated domestically usually at a bonded or local distribution facility, where orders are forwarded to customers.

This strategy offers several benefits:

• Reduces per-shipment brokerage and clearance fees.
• Simplifies customs procedures by aggregating documentation.
• Improves visibility and control over shipments.
• Facilitates better coordination with customs brokers or fulfillment centers.

It is important to understand, however, that consolidation affects operational and brokerage costs, not duties. The total amount of import duty payable remains unchanged because it depends on the value and type of goods, not on the number of shipments. To truly reduce or recover duty payment, businesses must explore US customs programs such as Duty Drawback.

Understanding US Duty Drawback

Duty Drawback is a long-standing US Customs and Border Protection (CBP) program designed to enhance the global competitiveness of US-based exporters. It allows the refund of up to 99% of the import duties and certain taxes paid on merchandise that is later exported or destroyed under customs supervision. For international B2C companies, this can translate to significant savings, especially when returns or cross-border stock rotations occur regularly.

In simpler terms, if goods are imported into the US, duties are paid, and later those same goods are exported in the same condition—for instance, as returns from US customers—those duties can be recovered.

Key Scenarios Where Drawback Applies

Duty Drawback can benefit businesses in several real-world scenarios:

• Goods imported into the US, stored, and later exported in the same condition (unused merchandise drawback).
• Goods imported to the US to be processed or assembled and then exported (manufacturing drawback).
• Goods destroyed rather than sold in the US, under CBP supervision.

For e-commerce sellers, the relevant category is typically unused merchandise drawback, particularly for returned items or unsold inventory shipped back overseas.

Two Ways to File for Duty Drawback

There are two main modes for companies to claim a Duty Drawback refund:

1. Service or Agent Claim (Third-Party Claim)
   In this common model, a licensed drawback broker or specialized service provider files claims on behalf of the importer/exporter. This is often the best solution for businesses without a US presence or without the resources to manage the complexity of drawback filings. The provider handles all stages—from documentation collection and reconciliation to CBP submission and follow-up—ensuring compliance and maximizing recovery.

2. Self-Filing (Direct Claim by Importer)
   Companies that act as the Importer of Record (IOR) and employ staff in the US can opt to self-file. This approach involves using CBP-approved Automated Broker Interface (ABI) software to manage data and electronic claim submissions directly. While more resource-intensive, it allows for complete control over the process, faster claim submissions, and potentially lower service fees over time.

Businesses must assess their operational footprint, compliance expertise, and customs data access before deciding between these two routes.

Why you’re losing money if you’re not on a Duty Drawback program

The combined effect of higher US tariffs and complex trade regulations has made duty drawback a crucial strategic tool. With the right setup, companies can reclaim millions in duties that would otherwise be lost. Moreover, drawback claims are retroactive—allowing companies to recover duties paid within the previous five years, subject to eligibility.

For example, a European fashion retailer importing garments to the US under the new tariff regime can reclaim duties on goods returned by customers or unsold items shipped back for redistribution. Over time, consistent application of this process can make the difference between a profitable international expansion and a financially unsustainable one.

The Role of Technology in Efficient Claim Management

Administering Duty Drawback successfully requires extensive documentation, accurate data matching, and compliance with CBP’s electronic filing requirements. Technology plays a pivotal role here. Advanced ABI-compliant software systems can reconcile import and export data, automate claim generation, and track refund progress in real time. This not only reduces human error but also shortens refund cycles from months to weeks.

Modern duty management platforms also integrate directly with enterprise systems such as ERP, warehouse management, and shipping software. This integration ensures a clear audit trail and simplifies the preparation of supporting records demanded by CBP during verification.

How TDR Supports Global E-commerce Businesses

As a global duty drawback provider, Trade Duty Refund offers both service-based and self-filing solutions. For international e-commerce sellers, this flexibility means you can choose the approach that fits your operational model. If you do not have a US legal entity, TDR can act as your licensed agent to file and manage refund claims end-to-end. If you operate a US subsidiary or fulfillment center, TDR provides the technology and guidance to enable self-filing through CBP-approved software.

With more than two decades of experience, TDR’s consultants specialize in simplifying compliance, maximizing claim values, and accelerating recovery timelines. The company’s expertise extends to high-volume B2C environments where returns and re-exports form a substantial part of logistics cycles, ensuring every eligible shipment is captured for recovery.

Implementing a Duty Drawback Strategy

For companies exploring Duty Drawback for the first time, success starts with preparation:

• Identify and classify eligible products based on import/export activity.
• Gather historical customs entry and export documentation.
• Map SKUs to their corresponding transactions using a traceable system.
• Partner with a certified drawback specialist or obtain an ABI-approved solution.
• Establish processes to capture and reconcile ongoing shipments dynamically.

Once implemented, the duty drawback program becomes a continuous recovery channel, delivering measurable impact to your P&L.

Looking Ahead: Turning Tariff Pressure into Advantage

The recent resurgence of trade barriers and tariff adjustments underscores a new reality for global e-commerce: resilience depends on adaptability. While higher duties and reduced de minimis thresholds pose a challenge, they also push businesses to rethink and optimize their supply chains.

Through a combination of consolidation, smarter brokerage practices, and the strategic use of duty drawback, international sellers can transform tariff compliance from a cost burden into a competitive advantage. In many cases, the savings recovered through Drawback can offset tariff increases entirely—turning a regulatory hurdle into a growth enabler.

Ready to start exploring the benefits of duty drawback? Contact us today