Managing Director, HC-Customs Limited · Customs compliance specialist · Brexit formalities · Updated January 2026
3 years
Lookback window for C285 claims
1.5–6%
Typical overpayment rate on import duty
£0
Cost to reclaim — HMRC refunds in full
30 days
Average HMRC processing time for C285
What is duty drawback?
Duty drawback is the process of recovering customs duty that was paid in excess of what was legally owed. Under UK customs law, importers have the right to claim a refund whenever an error in a declaration — whether in the declared value, commodity code, or origin status — resulted in overpayment.
The primary mechanism is the C285 form(Claim for Repayment and Remission of Customs Charges), submitted to HMRC's National Duty Repayment Centre. Claims can cover up to 3 years of declarations.
For businesses that import regularly, duty recovery is not a one-off exercise — it is a systematic review of your declaration history, typically run annually or after any significant commodity or sourcing change.
5 common sources of overpaid import duty
Customs value error (overstated value)
Your freight forwarder declared a higher customs value than the actual transaction value — resulting in excess duty. Occurs when insurance or freight costs are double-counted, or when a pro-forma invoice is used instead of the final commercial invoice.
Incorrect commodity code (higher duty rate)
The declared commodity code carried a higher duty rate than the correct code for the goods. This is one of the most common sources of overpayment — especially in machinery, electronics, and textiles where codes are adjacent but carry different rates.
Missed preferential tariff (FTA not claimed)
Goods were imported from a country with a UK FTA (e.g. EU, Japan, Canada) but full MFN duty was paid. If you now hold valid proof of origin and the goods genuinely qualify, you can claim the preference retrospectively — but only within the claim window.
Re-export drawback (returned goods relief)
Goods were imported, duty paid, and subsequently re-exported or destroyed under customs supervision. You are entitled to a refund of the duty paid on the proportion re-exported — provided the goods have not been used in the UK.
Inward Processing — duty on re-exported finished goods
Under an IP authorisation, duty on imported materials is suspended. If duty was accidentally paid rather than suspended, or if a BOD (Bill of Discharge) reveals under-processing, a drawback claim recovers the overpaid amount.
How to file a C285 claim — step by step
Step 1 — Identify the overpayment
Pull your import history from HMRC CDS (or your HMRC TRE export if you don't have live CDS access). For each declaration, compare: the declared customs value against your supplier invoices; the commodity code against the actual goods; whether an applicable FTA preference was claimed.
HC Customs automates this step — it ingests your CDS data or TRE CSV, flags declarations where the declared value diverges from typical market rates for the commodity code, and identifies declarations where you may have missed an FTA preference.
Step 2 — Gather supporting documents
For each declaration you are claiming against, you need:
- The original Entry Acceptance Advice (E2) or equivalent CDS output
- Commercial invoice at the correct value
- Evidence of actual payment made to the supplier
- For commodity code corrections: binding tariff information or technical product spec
- For preference claims: Statement on Origin, EUR.1, or REX declaration from supplier
Step 3 — Complete C285 and submit
The C285 form requires the MRN of the original declaration, the customs entry reference, the basis of the claim (error type), and the amount being claimed. You can claim multiple declarations on a single C285, provided they relate to the same type of error and the same importer.
Submit to HMRC's National Duty Repayment Centre by post or, where available, through the Customs Declaration Service online portal. Include all supporting documents.
Step 4 — HMRC review and repayment
HMRC aims to process straightforward C285 claims within 30 working days. Complex claims (particularly retrospective preference claims or reclassifications) can take 3–6 months. Repayment is made by BACS to the importer's bank account, or by customs duty credit if you have an ongoing deferment account.
Worked example: missed FTA preference
Scenario
A UK importer buys machine parts from Japan (commodity code 8483 40 51, MFN duty rate 1.7%). The parts originate in Japan and qualify under the UK-Japan CEPA for 0% duty. However, the importer's freight forwarder consistently declared MFN rates over 24 months.
£2.4M
Annual import value
£40,800
Duty paid per year (1.7%)
£0
Correct duty (0% CEPA)
£122,400
Recoverable over 3 years
To claim: obtain a retrospective Statement on Origin from the Japanese supplier confirming origin, attach to C285 covering the affected declarations, and submit to HMRC. The 3-year claim window means declarations older than 36 months cannot be included.
HC Customs Platform
Automatically scan your full import history for duty recovery
Upload your HMRC TRE export or connect live via CDS. HC Customs scans every declaration for missed preferences, value anomalies, and code reclassification opportunities — and generates a draft C285 for each claim identified.
Frequently asked questions
How far back can I claim duty drawback?
You can claim repayment of customs duty under C285 for declarations made in the last 3 years (calculated from the date of acceptance of the original declaration). There is no minimum claim value, but HMRC may not process claims under £10 due to administration costs.
Can I claim a preference retrospectively if I didn't have the origin document at import?
Yes, if you now hold a valid proof of origin covering the goods imported, you can submit a retrospective preference claim via C285. The supplier must confirm the goods met the relevant Rules of Origin at the time of export. You cannot obtain a back-dated Statement on Origin — the document must be genuine.
What is the difference between duty drawback and duty relief?
Duty relief (such as Inward Processing Relief or Returned Goods Relief) is claimed at the time of importation and suspends or waives duty in advance. Duty drawback is a retrospective refund of duty already paid. Both are legitimate mechanisms — drawback is used when relief was not claimed at the time or was miscalculated.
Does claiming duty drawback increase my HMRC audit risk?
Not inherently. C285 claims are reviewed by the National Duty Repayment Centre, not the audit team. However, a large or unusual claim may prompt HMRC to request additional evidence. Ensuring you have contemporaneous documentation for every declaration you claim against is essential.