When a buyer returns an order, is the import duty refunded?
Answer
Usually not. EU: the EUR 3 per-item duty in force since 2026-07-01 is not refunded when a consumer changes their mind; only defective or non-conforming goods qualify. VAT paid under IOSS can be refunded with the purchase price. US: duty is not refunded automatically; you can claim drawback (up to 99%) only if the goods are re-exported or destroyed under customs supervision, which takes paperwork and time. Price returns into your quote.
- Applies to
- Sellers shipping to the US or EU, especially on DDP terms.
By market
| Market | Duty refund | VAT | Source |
|---|---|---|---|
| EU (up to EUR 150) | Not for change of mind; possible for defective or non-conforming goods | IOSS VAT refunded with the price | Irish Revenue, Spanish Tax Agency |
| US | Not automatic; goods returned after retail sale can claim rejected-merchandise drawback (up to 99%) if exported or destroyed under CBP supervision within 5 years of import | No import VAT | 19 USC 1313(c), 19 CFR 190 subpart D |
Who carries the cost
| Shipping terms | On a return |
|---|---|
| DDP | The duty the seller already paid is basically not recoverable; return freight and handling fees are extra |
| DAP/DDU | If the buyer refuses to pay, the carrier often bills the seller first; the parcel may be held or destroyed |
What you can do
- Reserve return costs in your quote: duty already paid, return freight and handling fees.
- For categories with high return rates, consider handling returns in the destination country instead of sending them back to China.
- For high-value or bulk returns, ask a licensed US customs broker whether drawback is worth it. CBP ruling HQ H290868 treats goods returned by retail customers, defective or not, under this route; notify CBP before export or destruction.
- No special rule exists for small parcels; work out the paperwork cost first.
Still uncertain
- EU EUR 2 handling fee: start date and refund rules vary in national notices (to be checked).
- Official detailed rules on return duty for Brazil and Mexico have not been found yet.