Drawback in ACE
Drawback is a refund, in whole or in part, of duties, fees and internal revenue taxes imposed on imported merchandise. Drawback is paid based on the exportation or destruction of imported merchandise or a valid substitute.
U.S. Customs and Border Protection (CBP) deployed the Trade Facilitation and Trade Enforcement Act (TFTEA) drawback in ACE on February 24, 2018.
The final rule implementing TFTEA Modernized Drawback was published on December 18, 2018.
February 24, 2019 and onward, all drawback claims must be filed electronically in ACE and pursuant to TFTEA legislation (19 CFR 190).
Common Drawback Questions
Are filers able to file a non-ABI manual drawback claim?
Can I still file a Core Drawback Claim (19 CFR 191)?
No; February 23, 2019 was the deadline to file Core drawback claims.
How do I file for Accelerated Payment on a Drawback Claim?
In order to file a drawback claim with an Accelerated Payment request indicator, a filer must have a valid bond with CBP. If a bond is either insufficient, or it is expired, CBP will not reject the claim, but rather the Accelerated Payment request indicator will be removed. In order for it to be added back, the filer will need to contact their Drawback Offices and work with the drawback specialist after they have corrected the bond issue.
Where do I file my drawback prior disclosure?
Drawback prior disclosures should be filed with the Fines, Penalty and Forfeitures Office and the Drawback Office.
What are the main changes of TFTEA Drawback? (19 CFR 190)
TFTEA modifies many established precepts, and these changes benefit claimants and U.S. Customs and Border Protection (CBP). Such modifications include:
- Electronic claim filing in ACE
- Simplified substitution standards
- Increased access to fees
- Enhanced record retention requirements
- Broader legal liability for false claims
What are the filing changes for TFTEA Drawback?
There will be a limit on the number of records per claim. Specifically, each claim can have a combination of 10,000 parts, pieces, and styles in the import, manufacturing, and export or destroyed records per drawback claim.
- Substitution will now be based on an 8 - digit Harmonized Tariff Schedule or Department of Commerce Schedule B number.
- When filing an ABI drawback claim, the paper CBP drawback entry form 7551 will no longer be required. Filers are required to file claims electronically in ACE pursuant TFTEA.
- §190.51, §190.52, §190.53 provides guidance on the requirements to submit a drawback claim electronically.
- Certificates of Delivery and Certificates of Manufacturing & Delivery will no longer be requested or accepted to demonstrate the transfer of merchandise.
- § 190.10 and § 190.24 references that any transfer of merchandise must be evidenced by business records, as defined in § 190.2.
What are the elements of a complete drawback claim?
Filing an ACE drawback claim will require different data elements than were required in ACS. A complete drawback claim will consist of a successful claim acceptance in ACE and the DIS submission within 24 hours of acceptance in ACE of all applicable documents. Please reference CSMS Message 56208 for more information regarding required documents. Also, please reference the ACE Entry Summary Business Process Document for more guidance on complete claims.
What information will a filer be required to provide when filing a claim?
- Drawback Entry Number
- Filing Port Code
- Claimant ID Number
- Drawback Provision
- Drawback Claim Date
- Total drawback claim amount requested
- Import Entry Summary/HTS Data
- Information on Exportation or Destruction
- Notice of Intent to Export or Destroy (if applicable)
When filing an electronic drawback claim in ACE how do I know that it has been submitted?
Once a drawback entry has passed all validations, the filer will receive an automated message indicating that the claim has been successfully accepted. If CBP rejects a claim submission, the filer will receive an automated message identifying the data element that resulted in the rejection. Rejected claims may be corrected and resubmitted if within the amendment period.
What are the filing and recordkeeping deadlines?
There is a uniform five-year filing deadline from the date of importation of the designated imported merchandise. Exception: per 19 CFR § 190.101(e), claims filed pursuant to 19 U.S.C. § 1313(d) remain subject to the filing deadline of three years after the date of exportation.
Recordkeeping date for the maintenance of supporting documentation is three years from the date of liquidation (as opposed to three years from the date of payment).
Can I claim Section 301/201 duties on a drawback claim?
Yes; please visit Drawback 301/201 FAQs for more information. Please note, Section 232 duties are not available for drawback.
Are there new class codes for drawback?
Yes; there are two new class codes for Drawback, 674 (oil spills tax) and 675 (domestic paid tax).
Are there any additional drawback resources available?
- ACE Drawback CATAIR Guidelines
- ACE Drawback Error Dictionary
- ACE Entry Summary Business Rules and Process Document
- Informational webinars on drawback filing in ACE are available on CBP.gov
- Federal Register Notice (FRN) 83 FR 2644 was published on January 18, 2018 to announce the transition of Core drawback filing in ACE
- Modernized Drawback
- ACE Drawback Frequently Asked Questions
- Drawback 301/201 FAQs
- First Time Filer
- DIS Implementation Guide: A programming guide for the Document Image System
- Drawback Overview
- What's New in Drawback?
Who do I contact if I have issues?
For questions related to drawback policy, please email OTDrawback@cbp.dhs.gov
For questions related to any technical drawback issues, please reach out to your assigned CBP client representative for more information. If you do not have an assigned client representative, send an email to email@example.com.
For status of drawback claims and/or privilege applications, please contact your Drawback Specialist in one of the four Drawback Office Locations