Repair and Return Imports: How Goods That Go Out and Come Back Avoid Full Duty Twice

At any importer with hundreds of SKUs and many suppliers, some goods travel in both directions. A coat goes back to the maker to fix a seam. A pallet of serum comes back from a distributor who rejected it. A shipment of espresso machines goes back to the factory for warranty work. Samples fly to a trade fair and return. Without a plan, each of those returns is entered like a new import at the full value, and duty is paid on goods that were already duty paid, or on value that was created in the United States.

HTSUS Chapter 98 exists to stop that. Its provisions are special classifications that sit on top of the normal Chapter 1 to 97 classification, and U.S. note 1 to Chapter 98 says an article described in a Chapter 98 provision is classifiable there if the conditions of the provision and of any applicable regulations are met. That last clause is the whole game. The conditions are mostly documentary, and the export side of the record, meaning what left, when, and whether drawback was claimed, is easiest to capture at the moment of export, not when the goods land.

This guide covers the provisions that matter for fashion, cosmetics, food and consumer goods importers, what each one actually charges, and what has to exist before anything ships. Every heading number and condition below is taken from the current HTSUS (Revision 19, 2026) and the Code of Federal Regulations. Greenwich is not a customs broker: a licensed U.S. customs broker partner reviews any Chapter 98 claim before it is filed.

The provisions at a glance

Source: HTSUS Chapter 98, Revision 19 (2026). Rates shown are the General column. Several free trade agreement indicators in the Special column make 9802.00.40, 9802.00.50 and 9802.00.80 free for qualifying goods; see the sections below.

American goods returned and other unchanged returns: 9801.00.10, 9801.00.25 and 9801.00.26

9801.00.10 reads: products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The General rate is Free. The phrase "any other products" matters for importers: a foreign made product that was imported, exported, and comes back unchanged within 3 years is described by the heading, not only U.S. made goods.

Two limits apply across this subchapter. U.S. note 1 to subchapter I says these provisions do not apply to articles exported with benefit of drawback, or manufactured or produced in the United States under a TIB (9813.00.05) and then exported. If you claimed a refund of duty when the goods left, you cannot also bring them back free.

The documents are in 19 CFR 10.1. For shipments valued over $2,500 claimed under 9801.00.10, the regulation calls for a declaration by the foreign shipper that the articles were exported from the United States and are returned without having been advanced in value or improved in condition, plus a declaration by the owner, importer, consignee or agent that the articles were not manufactured under 9813.00.05 and were exported without benefit of drawback. CBP can waive these when it is satisfied from the nature of the goods or other evidence, and it can ask for more, such as a U.S. export invoice, bill of lading or airway bill, when goods over $2,500 are not clearly marked with the U.S. manufacturer's name and address. For products of the United States in a shipment not over $10,000 that come back for repair before reexport, or after being rejected or returned by the foreign purchaser for credit, 19 CFR 10.1(j) allows free entry under 9801.00.10 on CBP Form 3311, with a CBP Form 7501 as well, without the 10.1(a) declarations, unless CBP has reason to believe drawback was probably allowed on export.

9801.00.25 is narrower and built for rejected goods. It is free for previously imported, duty paid articles that were (1) exported within three years after the prior importation, (2) reimported without having been advanced in value or improved in condition, (3) reimported because they do not conform to sample or specifications, and (4) reimported by or for the account of the person who imported them into, and exported them from, the United States.

9801.00.26 covers direct to consumer returns from abroad. It is free for previously imported, duty paid articles that were (1) exported within 3 years after the prior importation, (2) sold for exportation and exported to individuals for personal use, (3) reimported without being advanced in value or improved in condition, (4) reimported as personal returns from those individuals, whether or not consolidated with other personal returns first, and (5) reimported by or for the account of the person who exported them within 1 year of that exportation.

Repairs and alterations abroad: 9802.00.40 and 9802.00.50

Both subheadings sit under the HTSUS description "Articles returned to the United States after having been exported to be advanced in value or improved in condition by any process of manufacture or other means: Articles exported for repairs or alterations". 9802.00.40 is "Repairs or alterations made pursuant to a warranty". 9802.00.50 is "Other". The General rate for both is the same: a duty upon the value of the repairs or alterations.

U.S. note 3 to subchapter II sets the mechanics:

• Value of the change. The value of the repair or alteration is the cost to the importer of the change or, if no charge is made, the value of the change, as set out in the invoice and entry papers. A free warranty repair does not mean a zero dutiable value.
• Rate. The duty is charged at the rate that would apply to the article itself, as an entirety, in its condition as imported.
• What is excluded from the value. Under 19 CFR 10.8(d), the cost or value is limited to repairs or alterations actually performed abroad, including domestic and foreign articles furnished for them, but excluding expenses incurred in the United States such as engineering, plans or specifications, and tools or equipment supplied for the work.
• Fungible goods. U.S. note 3(f) allows fungible articles exported for 9802.00.40 or 9802.00.50 purposes to be commingled and accounted for with an inventory management method based on generally accepted accounting principles, used consistently.

The warranty split matters in the Special column. For 9802.00.40, the Special column is Free for AU, B, BH, C, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S and SG. For 9802.00.50 it is Free for AU, BH, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S and SG, while B and C still pay duty on the value of the repairs or alterations. U.S. note 3(d) says the rates followed by "S" apply to goods returned after having been repaired or altered in Canada or in Mexico, whether or not the goods are goods of Canada or Mexico. 19 CFR 181.64 sets out its own repairer and owner declarations for Canada and Mexico repairs.

What counts as a repair or alteration. 19 CFR 181.64 defines "repairs or alterations" for Canada and Mexico returns as restoration, addition, renovation, redyeing, cleaning, resterilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different good from, the good exported. It also excludes goods that were incomplete for their intended use when exported, where the foreign operation is one performed as a matter of course in making the finished good. Treat that as the working test anywhere: if the foreign work finishes or transforms the product, it is manufacturing, and U.S. note 2(a) to subchapter II makes a U.S. product advanced in value abroad dutiable on its full value.

The entry needs the two declarations in 19 CFR 10.8(a): one from the person who performed the repairs or alterations, stating what was received, when, from whom, that only the listed work was done, its full cost or value, and that nothing was substituted; and one from the owner, importer, consignee or agent confirming that declaration, the export port and date, that the goods left without benefit of drawback (unless subject to USMCA drawback), and that the goods entered are the same goods exported. CBP may also require proof of export, such as a foreign customs entry, foreign customs invoice, foreign landing certificate, bill of lading or airway bill (10.8(b)).

U.S. components assembled abroad: 9802.00.80

9802.00.80 is a different tool. It covers articles assembled abroad in whole or in part of fabricated components, the product of the United States, that were exported ready for assembly without further fabrication, did not lose their physical identity, and were not advanced in value abroad except by assembly and operations incidental to assembly. The General rate is a duty upon the full value of the imported article, less the cost or value of the U.S. products in it (U.S. note 4). The assembler's declaration and importer's endorsement are in 19 CFR 10.24.

For cut and sew apparel, the regulations are specific:

• 19 CFR 10.14 lists precut parts of wearing apparel as fabricated components, and says uncut textile fabric exported in bolts, to be cut according to a pattern abroad, is not.
• 19 CFR 10.16 lists sewing as an assembly method and pressing and folding of assembled articles as incidental operations. Cutting garment parts according to pattern from exported material, and chemical treatments such as permapressing, sanforizing, dyeing or bleaching, are not incidental and preclude the exemption for the affected article.
• 19 CFR 10.25 provides that a textile component cut to shape (but not to length, width, or both) in the United States from foreign fabric and assembled abroad is excluded from the dutiable value of the returned article, subject to the 10.16 operations rules and the 10.17, 10.18, 10.21 and 10.24 valuation and documentation rules.

Specific apparel program lines under 9802.00.80 carry their own conditions. Confirm them with your broker before planning a production route around them.

Foreign goods in for repair: Temporary Importation under Bond (9813.00.05)

The mirror image is foreign goods that come into the United States to be worked on and then leave. HTSUS 9813.00.05 covers "Articles to be repaired, altered or processed (including processes which result in articles manufactured or produced in the United States)", Free, under bond. The conditions come from U.S. note 1 to subchapter XIII and 19 CFR 10.31 to 10.39:

• Not for sale. The goods must not be imported for sale or for sale on approval, and the entry summary must state the use in sufficient detail and declare that the goods will not be put to any other use (19 CFR 10.31(a)(3)).
• Bond. Generally a bond equal to double the duties and fees that would accrue on an ordinary consumption entry, or a larger amount if CBP states one is needed to protect the revenue (10.31(f)).
• Time. Export within 1 year from the date of importation. Extensions may be granted on application, but the total may not exceed 3 years (U.S. note 1(a)). Extensions are requested on CBP Form 3173 before the goods are exported or destroyed and before liquidated damages are assessed (19 CFR 10.37).
• Consequence. If the goods are not exported or destroyed within the bond period, CBP demands liquidated damages, generally equal to double the estimated duties including merchandise processing fees (19 CFR 10.39(d)).
• Excluded processing. U.S. note 2 bars using 9813.00.05 to process goods into alcohol, distilled spirits, wine or beer; a perfume or other commodity containing ethyl alcohol, denatured or not; or a product of wheat.

Customer and retailer returns of goods you imported

When imported goods come back from a U.S. retailer or customer, they never left the country, so Chapter 98 is not the tool. The relevant route is drawback on the way out. 19 U.S.C. 1313(c) provides rejected merchandise drawback on duty paid goods that do not conform to sample or specifications, were shipped without the consent of the consignee, or were defective at the time of importation, and also on goods ultimately sold at retail and for any reason returned to and accepted by the importer or the person who received them from the importer. The goods must be exported or destroyed under CBP supervision within 5 years after importation. For retail returns, the statute lets you designate an import entry made within 1 year before the export or destruction, identified with the same eight digit classification and the same product identifier, such as a SKU. Unused merchandise drawback under 1313(j) is the separate route for imported goods exported or destroyed without being used in the United States, also within a 5 year window.

Keep this separate from the Chapter 98 decision. Drawback on the export is exactly what the subchapter I and II notes say disqualifies a later free or reduced duty return. See the duty drawback guide for how claims are built.

What this looks like by vertical

Fashion and apparel

Repairs and alterations of finished goods. Finished garments sent back to a foreign maker to fix a construction defect, to be cleaned, or to be redyed can fit the repair or alteration pattern, provided the work does not create a new or commercially different good, with duty on the value of that work under 9802.00.40 if the work is under the supplier's warranty and 9802.00.50 if not. Anything that completes an unfinished garment is manufacturing, not alteration, and the return is generally dutiable on full value (U.S. note 2(a)), unless 9802.00.80 applies to U.S. components.

Samples. Commercial travelers' samples of domestic or foreign origin taken abroad may be returned without formal entry and without payment of duty if a carnet exportation voucher or an application on CBP Form 4455 was filed and the samples were identified before export (19 CFR 10.68). Samples that return unchanged are otherwise described by 9801.00.10 (within 3 years of export for samples that are not U.S. products).

Cut and sew. If you cut garment parts in the United States and have them sewn abroad, 9802.00.80 and 19 CFR 10.25 are the provisions to test; fabric shipped in bolts to be cut abroad does not qualify.

Cosmetics and personal care

Rejected shipments to foreign buyers. A batch exported to a distributor abroad and sent back unopened is a returned article that Chapter 98 can cover. U.S. made product can return under 9801.00.10, and for U.S. products in a shipment not over $10,000 rejected or returned by the foreign purchaser for credit, 19 CFR 10.1(j) allows entry on CBP Form 3311. Product you originally imported, paid duty on, and exported within 3 years, that is returned because it does not conform to sample or specifications, fits 9801.00.25 when the same person imported and exported it. Chapter 98 changes the duty, not admissibility: returned cosmetics still go through FDA requirements.

Batches that fail your checks after import. If imported product was defective at import or does not conform to specifications, 19 U.S.C. 1313(c) allows rejected merchandise drawback on export or destruction under CBP supervision within 5 years.

A TIB limit to know. 9813.00.05 cannot be used to process goods into a perfume or other commodity containing ethyl alcohol.

Consumer goods and electronics

Warranty repair abroad. Small appliances or electronics returned to the foreign factory for warranty repair and shipped back fit 9802.00.40. The dutiable value is the cost of the repair or, if the factory charges nothing, the value of the repair, and the repairer's 10.8 declaration must state it. Repairs done in Canada or Mexico show Free under the "S" indicator in the Special column for both 9802.00.40 and 9802.00.50.

Foreign units in for repair. Foreign products brought into the United States only to be repaired and then exported can enter under a TIB instead of a consumption entry, provided they are not for sale and leave within the bond period.

Food and beverage

The Chapter 98 routes are narrower for food. Under 19 CFR 10.16(a), mixing or combining liquids, chemicals, food ingredients and amorphous solids is not an assembly, so blending U.S. ingredients abroad does not qualify under 9802.00.80. Under U.S. note 2 to subchapter XIII, a TIB cannot be used to process goods into alcohol, distilled spirits, wine, beer, or a product of wheat. Food lots rejected by a foreign buyer and returned unchanged are tested against 9801.00.10 and 9801.00.25 like any other returned article, and still go through FDA or USDA admissibility requirements on the way back in.

Set it up before it ships: a checklist

1. Name the provision before the goods leave. Unchanged return (9801.00.10, 9801.00.25, 9801.00.26), repair or alteration (9802.00.40 or 9802.00.50), assembly (9802.00.80), or foreign goods in for work (9813.00.05). Each has different conditions and different paperwork.
2. Decide on drawback now. Goods exported with benefit of drawback are excluded from subchapter I and, except for USMCA drawback, subchapter II. You cannot recover duty on the way out and also claim a free or reduced return.
3. Register the goods with CBP where it applies. CBP Form 4455, Certificate of Registration, cites 19 CFR 10.8, 10.9 and 10.68 and covers articles exported for alteration, repair, processing, use abroad or replacement. The form notes that the cost or value of alterations, repairs or processing abroad is subject to CBP duty.
4. Record identity at unit level. Marks, serial numbers, lot numbers and SKUs, so the 10.1 or 10.8 declarations can tie the returned goods to the exported goods and state that nothing was substituted.
5. Keep proof of export. Export invoice, bill of lading or airway bill, and where available the foreign customs entry. CBP can ask for these under 10.1(b) and 10.8(b).
6. Get the repairer's declaration drafted into the service agreement. The foreign repairer must state the work done and its full cost or, when free, its value. Agree in advance that the invoice will show that figure separately, and whether the work is under warranty.
7. For a TIB, diary the export date. One year from importation, extensions on CBP Form 3173 before the deadline, and a total cap of 3 years.
8. Have a licensed U.S. customs broker partner review the claim before filing. Chapter 98 claims live or die on conditions and documents, and a broker confirms the provision, the Special column program, and whether any additional duties apply on the dutiable portion.

Where Greenwich fits

The failure point on returns is usually timing, not law. If the goods leave before anyone decides how they will come back, the export record, the registration and the repairer's figures may not exist when they land, and when CBP asks for proof of export or the declarations under 19 CFR 10.1 or 10.8, there is nothing to send. Having that record ready at entry is how a return clears as a routine entry instead of an open question.

Greenwich's duty reduction app reviews each product's classification, origin and valuation for lower duty routes, including goods that go out and come back, so the provision and the paperwork are decided before export. Licensed U.S. customs broker partners review the findings before anything is filed. If you want to see how return flows change the numbers on your own lanes, look at the landed cost scenarios or start with a duty optimization review. Classification errors and valuation errors are covered in our guides to HTS classification errors and customs valuation errors.

Frequently asked questions

If I send goods abroad for repair, do I pay full duty again when they come back?

Not if the claim is set up correctly. HTSUS subheadings 9802.00.40 and 9802.00.50 cover articles exported for repairs or alterations, and the duty is assessed only on the value of the repairs or alterations, at the rate that would apply to the article itself. The entry needs the declarations in 19 CFR 10.8, one from the repairer abroad and one from the owner or importer, and CBP may ask for proof that the goods were actually exported.

What is the difference between 9802.00.40 and 9802.00.50?

9802.00.40 covers repairs or alterations made pursuant to a warranty. 9802.00.50 covers all other repairs or alterations. Both carry the same general rate, a duty upon the value of the repairs or alterations. The difference is in the Special column: goods entered under the B and C indicators are free under 9802.00.40 but still pay duty on the repair value under 9802.00.50. A repair done free of charge under warranty is still valued, because U.S. note 3 uses the value of the change when no charge is made.

Can goods that come back unchanged enter duty free?

Often, yes. HTSUS 9801.00.10 is free for products of the United States returned after export, and for any other products returned within 3 years after export, provided they were not advanced in value or improved in condition abroad. It does not apply to articles exported with benefit of drawback. For shipments valued over $2,500, 19 CFR 10.1 calls for a foreign shipper declaration and an owner or importer declaration unless CBP waives them.

What is a Temporary Importation under Bond (TIB) and how long does it last?

A TIB lets foreign goods enter under HTSUS 9813.00.05 without paying duty when they are to be repaired, altered or processed and then exported, and not sold. The bond is generally double the estimated duties and fees (19 CFR 10.31(f)). The goods must be exported within 1 year from importation, and extensions can bring the total to no more than 3 years. If the goods are not exported or destroyed in time, CBP demands liquidated damages, generally double the estimated duties.

What paperwork has to exist before the goods leave the United States?

Decide the provision first, then build the record. CBP Form 4455, the Certificate of Registration, lets CBP examine and register articles exported for repair, alteration, processing or use abroad before they ship. Keep the export invoice, bill of lading or airway bill, and a unit level description with marks or serial numbers, because the return declarations must tie the same articles to the same export. Do not claim drawback on the export if you intend to use Chapter 98 on the return.

What is CBP Form 4455 and when is it used?

CBP Form 4455, the Certificate of Registration, lets CBP examine and register articles before they are exported for alteration, repair, processing, use abroad or replacement, so they can be identified when they come back. The form cites 19 CFR 10.8, 10.9 and 10.68. For commercial travelers' samples, a Form 4455 application or a carnet filed before export lets the samples return without formal entry and without duty. For repairs and alterations it supports the export side of a 9802 claim, alongside the declarations required by 19 CFR 10.8 unless CBP waives them.

How do customer or retailer returns of imported goods fit in?

Two provisions address this. If imported, duty paid goods were sold at retail and returned to the importer, 19 U.S.C. 1313(c) allows rejected merchandise drawback when they are exported or destroyed under CBP supervision within 5 years of importation. If imported goods were exported to consumers abroad and come back as personal returns, HTSUS 9801.00.26 can bring them back free when its five conditions are met, including export within 3 years of import and return within 1 year of export.

The bottom line

Goods that go out and come back do not have to pay full duty twice. Unchanged returns can be free under 9801.00.10, 9801.00.25 or 9801.00.26 when their conditions are met; repairs and alterations pay duty only on the value of the work under 9802.00.40 or 9802.00.50; U.S. components assembled abroad come off the dutiable value under 9802.00.80; and foreign goods in for work can use a TIB. Each of those is far easier to support when the provision is chosen and the export record is kept at the time the goods leave.

Greenwich coordinates U.S. customs brokerage through licensed customs broker partners. Before any filing, a licensed U.S. customs broker verifies classification and entry details.

Primary sources: Harmonized Tariff Schedule of the United States, Chapter 98, Revision 19 (2026), including U.S. notes to subchapters I, II and XIII; 19 CFR 10.1, 10.8, 10.14, 10.16, 10.24, 10.25, 10.31, 10.37, 10.39, 10.68 and 181.64; CBP Form 4455; 19 U.S.C. 1313. Confirm the current HTSUS text and any Chapter 99 duties for your product before filing. This article is operational guidance for importers and is not legal advice.