Transforming duty drawback: from legacy process to AI-powered solution
Duty drawback—the process to reclaim customs duties, tariffs, and taxes you've already paid—has been stuck in the past: slow, manual, and inaccessible to many businesses. With $4.5M in seed funding led by Initialized Capital, alongside Sancus, Basis Set, Soma Capital, General Catalyst, Transpose, ZVC1, and Flexport angels, Pax AI is rewriting the script. We're building an AI-powered duty drawback platform that lowers barriers to entry and puts money back where it belongs—your pocket.
The problem: why importers were left behind
Penny Chen, Co-Founder and CEO, witnessed the problem firsthand at Flexport. We've spoken to countless importers who tried to file duty drawback refunds for years but were rejected by traditional providers, deemed "too small" because duty drawback has historically been a complex and resource-intensive process.
Pax AI was born from that frustration. By leveraging artificial intelligence and automation, we've made complex drawback work more efficient for importers with serious recovery potential. This same technology allows us to process high-volume claims for major importers, from emerging brands to Fortune 500 companies.
Pax AI platform: complete duty drawback solution
Our comprehensive AI-powered duty drawback platform offers:
- Eligibility Assessment: Quickly determine whether your trade activity supports a duty drawback program
- AI-Driven Refund Maximization: Our proprietary machine learning algorithm analyzes your import data to identify maximum recoverable duties, delivering an average of 15% more in refunds compared to traditional duty drawback methods
- Unified Data Integration: Seamlessly process import data from PDFs, ERP systems, ACE (Automated Commercial Environment), and other customs documentation—no manual reformatting required
- Collaborative Platform for Customs Brokers: Beyond serving importers directly, we partner with customs brokers and technology companies. Our platform enables efficient collaboration for data exchange and drawback claim filing—all in one integrated solution
- Real-Time Dashboards & Analytics: Track claim progress, monitor estimated refund amounts in real-time, and make data-driven decisions about your duty drawback strategy
Perfect timing: why duty drawback matters more than ever
U.S. trade policies are shifting rapidly under the Trump Administration. Reciprocal tariffs and escalating trade tensions have introduced new complexities. Recent measures include a substantial 34% tariff on Chinese imports—all eligible for duty drawback recovery.
In this volatile trade environment, businesses face unprecedented urgency to recover costs and mitigate financial impacts. Companies that previously ignored duty drawback due to complexity now recognize it as essential for maintaining competitiveness.