This Issue's TLDR...

• The US government taketh...but you can take back
• The *right* questions to ask your 3PL
• A clever way to defer tariffs

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This week's "BEST from Me" comes via a reader question that hit my inbox last week.

I'm choosing to spend some time on it here -- i.e., not just give you a copy/paste of my brief email response -- because it represents a potential cost savings for your business which, let's face it, in light of the new tariffs, we could all use a bit of cost relief.

Here's the question:

Q: "Jon, you mentioned 'duty drawback' during your VIP workshop at EUSECON. Can you remind me what that is?"

Let's dig in...

What They Are (and Why No One Talks About Them)

So, you paid customs duties on products you imported.

But, they didn't sell, so you had to destroy them.

Or, they didn't sell, so you exported them and offloaded them through another non-US sales channel (maybe Amazon.ca)?

If you've done this, you might have (or might be) leaving serious cash on the table.

Duty drawbacks are basically the US government's way of saying: "Oops, you didn't actually use that stuff here? Here's your money back."

It's a refund of the duties, taxes, and fees you paid when you first brought goods into the U.S....as long as those goods eventually leave the country or get destroyed under official supervision.

So yeah, if you're exporting finished goods made from imported inputs, or simply returning unsold inventory, you could reclaim up to 99% of what you paid in duties. Real money.

Why They Matter

This is one of those quiet power moves that ops-savvy brands and supply chain killers use to look like magicians in the P&L.

Think about it:

• You're already paying tariffs on imports (ouch).
• You're already exporting or writing off products (double ouch).
• But if you're not filing drawback claims? You're just... twisting the knife rather than pulling it out.

This is found revenue. No new product. No new campaign. Just operational cleanup with high ROI.

Here's why you should be obsessing about drawbacks in this new world of trade:

• Boosts margin without raising prices.
• Offsets tariff pain from Section 301/China duties.
• Works across verticals (e.g., apparel, beauty, supplements, CPG, electronics).
• Totally scalable. If you're doing it for one SKU, you can do it for dozens.

If you're in the 7- or 8-figure revenue range and playing in import/export lanes, this should be part of your playbook. Period.

Qualifying Questions to Ask Yourself

Not sure if duty drawbacks are applicable to your business? Ask yourself:

• Do we import products or raw materials and then export them?
• Have we ever written off unsold inventory by shipping it overseas or destroying it?
• Are we paying significant duties on imported components or finished goods?
• Do we have reliable documentation on shipments in and out?
• Have we grown internationally and now export more than before?
• Are we looking for low-lift ways to improve gross margin?

If you said yes to even two of those, you're leaving money on the table.

Bottom Line

Duty drawbacks are a smart, strategic way to reclaim lost dollars...without spending on new ads, adding headcount, or gambling on TikTok virality. You already paid the duty. If you're eligible, go get it back.

Big brands are doing it. Small, scrappy ones should be too.

Want help evaluating your potential recovery? Bring in a broker (I'll happily make a referral), have them audit your import/export trail, and start claiming what's yours.

Most of us already pay enough in US taxes. Don't pay US Customs more than you need to.

FRIENDS OF B@A Seller Sessions Live Name me one place in the world that you get? Access to SOPs for a $30M brand (targeting to hit $50M) 7-8 figure sellers and ranking experts reveal everything A workstation where you are hands-on, in real-time An in-depth curriculum with walkthroughs that your own VAs can execute A suite of tools that require no subscriptions, most of which do not exist in commercial tools, specifically built for the conference. 8-figure strategies for less than £400 (real value vs perceived)? It's okay, I'll give you some time to think... Still thinking? No? Still need more time? Okay, there is only one. It takes place on May 10 in London. This year, my good friend Danny McMillan and his team are introducing an entirely new conference format and I'm super excited about it. Hope to see you there! ​ Reserve your SEAT at Seller Sessions Live

BEST from X

With the unreliability of AWD, increasing cost of FBA, and the need for flexible ways to avoid or defer tariffs (more on that below), you might suddenly find yourself in the market for a 3PL.

If you are, read this:

Chad Carleton @ChadCarleton You're suddenly looking for a 3PL. I run a big one that is nearly full. Here's what 3PL's may not tell you. How to: 1) not overpay 2) choose the right location 3) pick a good one 👇 11:20 AM • Apr 3, 2025 1 Retweets 70 Likes Read 6 replies

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BEST from X [BONUS]

If you need a reference for a bonded warehouse, let me know.

Sean Frank @SeanEcom One tip: If you are going to be facing bankruptcy / cashflow issues because you have shipments in transit and the new tariffs will wreck you- Look into bonded warehouses. They are last mile 3pls, but the units sit in bond, tariffs unpaid. You only pay when you pull units out 8:27 PM • Apr 7, 2025 15 Retweets 237 Likes Read 16 replies

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BEST from YouTube

So, this episode has a few gems in it.

Of course, there's tariff talk.

If you couldn't tell, that's sort of the theme of this issue.

But, also, there's a mini deep dive into Thrasio's bankruptcy, which is always fun.

My two favorite sound bites from the episode:

• "You are your gross margin."
• "At some point, you're not a brand anymore — you're a shipping company with a logo."

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Yes, you need money to buy a business.

But, creative deal structures can really stretch the value of your own personal contributions to an acquisitions.

And, there are large pools of investors looking to write $50k-$1mm checks for SMB deals.

If you are ever thinking about an acquisition, but worried about the financing piece, stop and phone a friend (ME!).

I have a large database of both debt and equity financing sources for acquisitions.

Matthias Smith, CEO - Pioneer Capital Advisory LLC @SBA_Matthias How Much Business Can You Afford to Buy? Let’s Break It Down. If you’re exploring business acquisition through the SBA 7(a) loan program, here’s one of the most important principles to understand: Your available down payment typically dictates the size of the business you can 10:12 PM • Mar 29, 2025 0 Retweets 16 Likes Read 1 replies

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