b. 1313(j)(1), in accordance with subpart C of this part, to the extent that the merchandise qualifies therefor. Therefore, this provision may only be used where there are exports to non-NAFTA countries. Drawback not allowed Direct Identification Substitution Determination of commercially interchangable. § 191.43 - Unused merchandise claim. Unused Merchandise Drawback. Here’s the exact language of the law: If imported merchandise, on which was paid any duty, tax, or fee imposed under Federal law upon … 1313(j)(1)): If imported merchandise is unused and exported or destroyed under Customs supervision, 99 percent of the duties, taxes and/or fees paid on the merchandise by reason of importation may be recovered as drawback. Unused Merchandise Drawback. 6 It is important to recognize that “same condition” standard is considerably narrower than that for “unused” merchandise, 7 the latter allowing various processing steps that are “incidental operations” 8 but only disallowing a use of the imported merchandise for its … We will teach you how to determine which types of drawback are right for you, how to calculate duty drawback potential, how to establish your program with CBP, and what is required to prepare and file claims. 1313(j). Unused Merchandise Drawback provides for drawback upon the exportation or destruction under CBP supervision of imported merchandise upon which was paid any duty, tax, or fee, if the merchandise has not been used within the United States before such exportation or destruction. Unused Merchandise. There are limited operations that can be performed on the merchandise while in the United States (i.e. Sometimes materials or products are imported into the country with the full intention of being used. A claimant may file a claim for drawback on imported material that is subsequently exported in an unused condition. Direct … Learn more. The … ** The Customs Regulations state that the exporter is entitled to the drawback refund unless he waives that right. Example: A shipment of 500 widgets is imported from Japan. Merchandise which has been exported or destroyed without complying with the requirements of § 190.35(a), § 190.42(a), § 190.71(a), or § 190.91 may be eligible for unused merchandise drawback under 19 U.S.C. 1313(j)(1), in accordance with subpart C of this part, to the extent that the merchandise qualifies therefor. (B) In cases described in subparagraph (A), merchandise may be substituted for imported merchandise for drawback purposes if—(i) the other merchandise and such imported merchandise are classifiable under the same 10-digit HTS statistical reporting number; and(ii) the article description for that 10-digit HTS statistical reporting number does not begin with the term “other”. Drawbacks were introduced by CBP to reduce costs and incentivize exports – spurring on the economy. To simplify the drawback process for this article, I will be using a pen as my claimable merchandise to walk through the different types of drawback. 1313(j)(1). 3301(4)], of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (8) of section 203(a) of that Act [19 U.S.C. Additionally, and perhaps more importantly, successfully obtained an amendment to the waiver of prior notice of intent to export (from J1 to 1313c). Those time frames mandate that the drawback claimant must keep the drawback records for a maximum of 9 years and 30 days. Successorship 1313(s) (2) Subject to paragraphs (4), (5), and (6), if there is, with respect to imported merchandise on which was paid any duty, tax, or fee imposed under Federal law upon entry or importation, any other merchandise (whether imported or domestic), that—(A) is classifiable under the same 8-digit HTS subheading number as such imported merchandise;(B) is, before the close of the 5-year period beginning on the date of importation of the imported merchandise and before the drawback claim is filed, either exported or destroyed under customs supervision; and(C) before such exportation or destruction—(i) is not used within the United States, and(ii) is in the possession of, including ownership while in bailment, in leased facilities, in transit to, or in any other manner under the operational control of, the party claiming drawback under this paragraph, if that party—(I) is the importer of the imported merchandise, or(II) received the imported merchandise, other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, or any combination of such imported merchandise and such other merchandise, directly or indirectly from the person who imported and paid any duties, taxes, and fees imposed under Federal law upon importation or entry and due on the imported merchandise (and any such transferred merchandise, regardless of its origin, will be treated as the imported merchandise and any retained merchandise will be treated as domestic merchandise);then, notwithstanding any other provision of law, upon the exportation or destruction of such other merchandise an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l) shall be refunded as drawback. 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