Pax uses AI to automate import tax refunds (aka duty drawback) for retailers and manufacturers. We launched 4 weeks ago and have ~$200K in contracts.

Each year, 80% of eligible refunds—equivalent to $11B—go unclaimed. Pax is the first AI-powered broker helping brands under $50M reclaim 3-5% of their revenue. Our algorithms generate 15% more refunds than the industry leader and reduce processing time by 99% with AI.

Pax was founded by Penny, an MIT PhD who encountered the duty drawback problem firsthand at Flexport, and Chris, a second-time founder and engineer with experience at Amazon, Brex, and TikTok.
TurboTax for Import Duty Rebate
Title: Pax: AI Broker for Import Tax Refund | Y Combinator

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### AI Broker for Import Tax Refund

Pax uses AI to automate import tax refunds (aka duty drawback) for retailers and manufacturers. We launched 4 weeks ago and have ~$200K in contracts. Each year, 80% of eligible refunds—equivalent to $11B—go unclaimed. Pax is the first AI-powered broker helping brands under $50M reclaim 3-5% of their revenue. Our algorithms generate 15% more refunds than the industry leader and reduce processing time by 99% with AI. We are two technical founders: I got my PhD from MIT and, and was a former research scientist at Amazon & Flexport, where I encountered the problem firsthand. My co-founder Chris is a second-time founder and former software engineer at Amazon, Brex, and TikTok.



Pax

Founded:2024

Team Size:2

Location:San Francisco

### Active Founders

### Penny Chen, Founder

Penny is the Co-Founder and CEO of Pax AI. She has designed and built algorithms for pricing, forecasting, fulfillment, and capacity planning to optimize workflows, costs, and quality across logistics and supply chain. She has extensive experience driving projects at MIT, Flexport, and Amazon, addressing real-world problems through a mixture of AI/ML, statistics, and optimization.



### Chris Le, Founder

Chris is the Co-Founder and CTO of Pax AI. Before Pax AI, Chris worked on scaling up Amazon's supply chain network where he was introduced to the logistics space. After Amazon, Chris built the TikTok E-Commerce merchant systems from 0-1 and took that learning to build Kyros, a live streaming e-commerce platform in Singapore. Most recently, Chris built the financial rewards and billing systems at Brex.



### Company Launches

[### Pax AI - TurboTax for Import Duty Rebate](

TL;DR - Billions of dollars paid on import duties are eligible for return every year, but the claim process is costly and time-consuming. That’s where Pax comes in. We turn complex regulations into algorithms, so importers of all sizes can reclaim the money that's rightfully theirs effortlessly. **We can give sub $50m sales ecommerce brands 3-5% back on their sales**.

Hi everyone, we’re Penny and Chris, aka the team behind [Pax](



🧠 [Penny]( 8+ years in research, built algorithms for supply chain and logistics @ Flexport, Amazon & MIT. Chat with me about #optimization #sauna #Taiwan.

🎯 [Chris]( 6+ years in software engineering, built financial systems and supply chain solutions @ Amazon, Brex & TikTok. Chat with me about #boxing #meditation #Vancouver.

Problem
-------

U.S. companies spend over $100 billion annually on import taxes. The good news is that Duty Drawback—a tax refund program—lets companies reclaim that cash! Astonishingly, $10 billion (80% of eligible refunds) goes unclaimed each year. Why? The process is a real headache.

Today, dealing with the government and customs brokerages takes months, as they take 10-20% of the refund and refuse to work on claims under $100k. As a result, only large enterprises file drawbacks, leaving smaller businesses out in the cold. With trade wars heating up, duty drawbacks are more important than ever—new rules like Tariff 301 include an additional 25%- 100% duty on $50 billion of Chinese goods. It’s time to make the process simple and accessible!

Solution
--------

Pax creates a [**TurboTax-like experience**]( requiring no duty drawback expertise. Our product uses AI to handle the heavy lifting of collecting, extracting, and validating data and maximizes claim amounts with optimization algorithms. Pax democratizes duty drawback, enabling importers of all sizes to recover money that is rightfully theirs.

Using Pax, companies:

*   Save hundreds of hours dealing with manual data entry.
*   Reclaim millions of dollars spent on import duties.
*   Full in-suite dashboard and analytic reporting.

😀 **Ask**: If you or any companies you know import goods into the U.S. (e.g., retailers like Nike or manufacturers like Zero Motorcycles) or customs brokerages, we’d love to chat! Please reach us at [founders@getpaxai.com](mailto:founders@getpaxai.com)!

#### YC Sign Photo


