Excise Tax Drawback

  • Most alcohol companies overpay federal excise tax without realizing it. Enter 'Drawback'. At Novel CPG, this is the kind of innovative regulatory operations work we specialize in and it’s an area we’re particularly excited to help clients explore. We guide you through the complexity, navigating compliance, designing systems, and managing the necessary documentation, so your business retains more of what it earns. Drawback programs can also be structured to offset future excise taxes and duties, creating ongoing savings that improve margins and operational efficiency.

What is Excise Tax Drawback?

Excise Tax Drawback is a federal program administered by U.S. Customs and Border Protection (CBP) that allows companies to recover excise taxes they have already paid on certain goods. In the alcohol industry, this generally applies to exported products, destroyed inventory, or eligible materials. The program predates the U.S. dollar as a hallmark of American manufacturing strategy, reflecting a long-standing federal approach to support domestic producers. In practice, it allows businesses to reclaim taxes that would otherwise remain a sunk cost and reinvest those funds into growth and operations.

Why This Matters

  • Billions of dollars go unclaimed every year

    ...many companies simply don’t realize they qualify.

  • The process is complex and documentation-heavy

    ...which is why many businesses avoid it.

  • Taxes are one of your largest hidden costs

    ...Drawback can reduce the costs and expand margins.

  • Our role: We simplify, manage, and maximize your claims.

Learn how we helped a global spirits giant unlock millions in excise-tax savings through Drawback, all while strengthening cross-functional organization.

READ THE CASE STUDY

Our Drawback Services

Eligibility Assessment

Analyze your supply chain to identify drawback opportunities.

Program Design

Build a compliant, scalable system tailored to your operations.

Implementation

Align finance, legal, and operations to capture refunds.

Ongoing Management

Maintain records, filings, and compliance to keep funds flowing.

Audit Readiness

Ensure you’re prepared for regulator reviews with airtight documentation.

Don’t leave money on the table.

With the right Drawback strategy, your business can recover past taxes and reduce future costs with confidence.

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