Find Answers to Frequently Asked Questions about Customs Drawback Below.
TYPES OF DRAWBACKS
There are three types of Drawbacks
1) Manufacturing Drawback
2) Rejected Merchandise Drawback
3) Unused Merchandise Drawback
Manufacturing Drawback provides for “Direct Identification” USC 1313(a) and Substitution under Subsection (b). In both cases Drawback is permitted if exported within 3 years at the rate of 99% of the duties paid at import.
There are other forms of Drawbacks available under this section:
Successorship 1313 (s)
Agricultural Products over quota 1313 (w)
Tradeoffs 1313 (k) per regulations CFR 19- 191.11
Tax-Paid Alcohol if used to make perfumes and is exported.
Imported Salt if used to cure fish or meat upon export of such fish and meat.
Materials used for construct and as equipment for vessels and aircraft of foreign ownership.
Jet Engines – Overhaul, repair, rebuild of a foreign made jet aircraft engine. 1313 (H)
Packaging Materials -1313 (q)
Note: Waste is not available for Drawback unless it is a valuable waste
REJECTED MERCHANDISE DRAWBACK
Rejected material Drawback is provided for in 19 USC 1313(c), when an imported merchandise does not conform to sample or specifications, shipped without consent, or considered defective, is returned to Customs Custody within 3 years of import date.
Other forms of Drawback available:
Unmerchantable Alcohol Beverages - No time limit
UNUSED MERCHANDISE DRAWBACK
Unused Merchandise is provided for in 19USC 1313(J) when a merchandise is exported or destroyed within 3 years of import without being used in U.S.
Other Drawback available:
Commercial Interchangeability -1313 (j) (2). Possession is required
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