Petroleum is the one industry Congress gave its own drawback statute. Under 19 U.S.C. 1313(p), refiners and importers can substitute petroleum derivatives at the same tariff classification, recovering duties, and often federal excise tax, on product that is exported.
Most drawback runs on same-condition or manufacturing rules. Petroleum has a purpose-built provision that fits how the industry actually moves product.
The petroleum derivatives provision lets an exported derivative be matched against an imported one of the same 8-digit HTS, without tracing the exact molecules. It is the same statutory tool covered on our petrochemical drawback page, applied across the fuels and derivatives supply chain.
Gasoline, diesel and other fuels carry a federal excise tax that is recoverable through excise tax drawback when the fuel is exported. For large exporters this recovery frequently exceeds the customs duty.
Customs duties, along with the merchandise processing and harbor maintenance fees, are recoverable under 19 U.S.C. 1313 on qualifying petroleum imports that are later exported.
Import crude or feedstocks, refine domestically, and export finished products; recover duties and excise on the exported volume through the 1313(p) framework.
High-volume import and export flows of the same or substitutable derivatives are exactly what the petroleum substitution provision was written to capture.
Exporters of taxed fuels can recover the federal excise, a recovery stream that is often overlooked and materially larger than the duty.
Section 1313(p) lets you substitute petroleum derivatives at the same 8-digit HTS without the usual same-condition or manufacturing tests, which fits the fungible nature of the product.
Yes. Federal excise tax on exported fuels is recoverable through excise tax drawback, on top of any customs duty.
Five years from the date of importation, so a first claim can capture several years of past duty and excise.
Alliance has deep petroleum drawback experience. We will structure the substitution program, capture the excise recovery, and file and defend it end to end.