Drawback

CBP regulations changes were made to 19 CFR 190 (including Appendices), revising 19 CFR Part 181 and 191 in accordance with TFTEA requirements 19 U.S.C. 1313, as amended) and with prior statutory changes (where regulations had not been updated already). These changes streamline procedures and requirements/minor technical updates.

• Trade Policy Updates: CSMS Message 56208
• USMCA Drawback Interim Guidance: CSMS Message 43227909, CSMS Message 45198584, CSMS Message 45792120 & CSMS Message 46642358
• CSMS #44097386 - Troubleshooting Drawback Revenue Errors

• CSMS #45782283 - Retail Sales Programming Issue: Interim Solution for Drawback Exports to Canada and Mexico

Certain Cargo Systems Messaging Service correspondence (e.g., 12-000546 and 13-000476) may be of some assistance to those participating in drawback.

Cargo Systems Messaging Service Webpage Update

Cargo Systems Messaging Service Webpage

After February 22, 2019, paper drawback claims are no longer accepted. All drawback claims must be filed electronically in ACE and in accordance with the Trade Facilitation Trade Enforcement Act of 2015 (TFTEA) (Pub. L. 114–125, 130 Stat. 122).

Companies/individuals that are not automated have several options for filing electronic drawback claims:

1. Hire a licensed customs broker to file a claim on your behalf
2. Self-file your claims through a service bureau, which provides both the software and the communications connection to the CBP Data Center. See this link for a list of service bureaus and other certified ABI software vendors: ABI Software Vendors List
3. Establish your own communications connection to the CBP Data Center in order to self-file your claims. There is more information about this process at the following link: Transmitting Data CBP Electronic Data Interchange. *Note that this process will take 3-6 months to complete.

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 clientrepoutreach@cbp.dhs.gov.

For guidance related to drawback claim transmission, please reference the following links:

• Drawback in ACE Overview
• ACE Drawback CATAIR
• ACE Business Process Document
• Drawback Office Locations

• Drawback
• Drawback Webinar-ACE Entry Summary Business Rules and Process Document

• Drawback in ACE
• Drawback FAQs

• ACE Business Rules
• CATAIR
• ACE Drawback Error Dictionary

CBP Form 7553

Please note that this form must be submitted to the CBP Officers at the port of examination, which for exported merchandise is usually the port of export, and for destructions, usually the port where the merchandise is located.

Instructions

This form must be presented to CBP prior to any action taken by the company regarding exportation or destruction. The form will be returned to the company, indicating CBP's decisions on examination, destruction or waiver (indicating that CBP has made a determination not to examine the merchandise prior to export or witness the destruction). After this form is returned by CBP, it should be uploaded as an attachment to the company's drawback claim in Digital Image System (DIS), along with proof of exportation or destruction, and submitted for acceptance in Automated Commercial Environment (ACE). This form is a required document that must be provided to CBP within 24 hours of the filing of the drawback claim in order to fulfill the complete claim requirements (if the claimant does not have one-time waiver (OTW) or waiver of prior notice (WPN) privileges).

Time requirements for the different types of drawback are provided below:

Unused merchandise drawback (1313(j)(1)) - Imported merchandise that has not been used in the U.S., or has undergone an operation(s) or combination of operations that does not amount to a manufactured or produced article, as provided under the provisions of the manufacturing drawback law. Export/destroyed merchandise must be the same article that was imported into the U.S. The CBP Form 7553 must be submitted to CBP 5 working days prior to exportation, or 7 working days prior to destruction.

Substitution unused merchandise drawback (1313(j)(2))

Substitution is allowed if both the imported and substituted merchandise are classified under the same 8-digit HTS, provided the imported merchandise 8-digit HTS is not described as “other.” If the imported merchandise 8-digit HTS is described as “other,” substitution is allowed if both the import and substituted merchandise 10-digit classification is the same and not described as “other.” The exported/destroyed merchandise may be substituted merchandise that is classified under the same 8-digit HTS as the imported merchandise and has not been used in the U.S. No exports to Canada or Mexico allowed. (The CBP Form 7553 must be submitted to CBP 5 working days prior to exportation, or 7 working days prior to destruction). Please note that petroleum under 19 U.S.C. 1313(p) and wine under the alternate rule (19 U.S.C. 190.32(d)) are exceptions to the general 1313(j)(2) unused substitution standards.

Same condition drawback under NAFTA

Exported merchandise to Canada or Mexico must be in the same condition as defined in 19 CFR 181.45(b)(1). (The CBP Form 7553 must be submitted to CBP in the timeframe provided under 19 CFR 181.46 -NAFTA Drawback))

Manufacturing drawback

The manufactured article that is to be destroyed must contain imported or substituted merchandise under the drawback provisions and was not used in the U.S. (The CBP Form 7553 must be submitted to CBP 7 working days prior to destruction).

Rejected merchandise drawback

Check the box that accurately reflects why the imported article(s) are rejected. (The CBP Form 7553 must be submitted 5 working days prior to exportation or 7 working days prior to destruction).

Distilled spirits, wine or beer

Check this box if imported distilled spirits, wine or beer, are to be exported or destroyed under CBP supervision. They must be un-merchantable or not conform to sample/specifications (26 U.S.C. 5062(c)). This provision provides a 100% refund of Internal Revenue taxes only. (The CBP Form 7553 must be submitted 5 working days prior to exportation or 7 working days prior to destruction).

Please note the continuation sheet shall be used when additional space is needed for fields 15 through 19 on the form.

Drawback: A Refund of Certain Exports

Drawback Claims Filed on Goods Subject to Chile Free Trade Agreement

Chile Drawback and Duty Deferral Program

Purpose

The purpose of the Chile FTA Drawback and Duty Deferral Program is to limit the refund of duties due on materials used to produce goods that are subsequently exported to Chile. The Chile FTA Drawback and Duty Deferral Program reduce the amount of duties that can be refunded as follows:

References

• Memorandum: Drawback Claims Filed on Goods Subject to Chile Free Trade Agreement, November 20, 2012, provides additional information and filing instructions.

  Agreement: Article 3.8, Drawback and Duty Deferral

• Public Law 108-77, Sec 203, Drawback, Sept. 3, 2003

• 19 U.S.C. 1313, Drawback and Refunds, 1313(j)(4)(B) and 1313(n)

• CSMS 12-000165, Chile Drawback Interim Instructions, posted May 15, 2012, states that CFTA drawback claims must be submitted "paper" and that additional instructions will be issued.

• CSMS 12-000546, Drawback Claims filed on Goods Subject to the U.S. - Chile FTA, posted, December 10, 2012, provides the phase out schedule and instructions.

• 19 CFR 10, Subpart H: Does not reference drawback

Chile drawback is patterned after NAFTA drawback. Information on NAFTA drawback is available on the NAFTA Drawback and Duty Deferral Page.

According to Title 19 of the Code of Federal Regulations at section 111.2(b)(2)(D)(ii) “[a] broker granted a permit for one district may file drawback claims manually or electronically at the drawback office that has been designated by Customs for the purpose of filing those claims, and may represent his client before that office in matters concerning those claims, even though the broker does not have a permit for the district in which that drawback office is located.”

A licensed Customs broker in possession of a valid national permit may file drawback claims at any of the drawback offices regardless of the district in which the filer (e.g., Customs broker) is permitted. The drawback claim is submitted electronically to the drawback office and not through the port of entry.

• Trade Remedies
• Drawback Trade Remedies FAQ
• As a reminder, for all drawback provisions claiming Section 301 and/or 201 duties, the filer must report both the Chapter 99 and the 1 - 97 HTS numbers, along with the QTY and Value for each line item in the same order as listed in the ACE underlying import entry. (CSMS# 45963175)

• Drawback of Federal Excise Tax Paid on Petroleum Products
• Drawback of Federal Excise Tax Paid on Petroleum Products - Revised Claim Documentation

Combined Application for one or more Drawback Privileges

• New Class Codes: there are two new class codes for Drawback, 674 (oil spill tax) and 675 (domestic paid tax).

Effective September 14, 2021, drawback claims transmitted in ACE will be routed to the Center of Excellence and Expertise (Center) based on the claimant’s current industry sector account alignment. If a claimant is aligned with a Center based on their importer of record filing of import entry summaries, this will be the same Center alignment for their drawback claims. A claimant will only be assigned to one Center, regardless of filing drawback campaigns across multiple industries.

Filing Drawback Claims on/after September 14, 2021
The trade should continue to transmit claims to any of the four drawback office port locations as provided in the CBP and Trade Automated Interface Requirements (CATAIR). Claims will be routed internally by CBP based on the claimant’s designated Center alignment.

If a claimant is not aligned with a Center, the claimant’s assignment will be determined at the drawback office where the claim was transmitted. Drawback filers that have access to the Automated Commercial Environment (ACE) portal may run the ACE ES-001 report to identify the team codes on their claims. The chart below indicates the Center and industry alignment with corresponding team codes. Customs brokers that are filing claims using their importer of record number will not be aligned with a Center.

Privilege Applications, General Ruling Requests, Correspondence
If a claimant is aware of their Center account alignment, they should submit all new requests to that Center’s drawback email attribute. If a claimant is not aware of their Center account alignment, or is a new filer, they should submit their requests to the drawback email attribute that best aligns with their industry.

Privilege and ruling applications submitted prior to September 14, 2021, will remain at the physical drawback office location where they were initially filed and will be processed by that office. Additional documentation regarding these requests should be sent to the current processing drawback office.

Paper Claims
Paper ACS claims will remain at the physical drawback office location where they were initially filed and will be processed by the local drawback office. Additional documentation regarding these requests should be sent to the current processing drawback office.

Electronic Claims
Core and TFTEA claims filed prior to September 14, 2021, will be processed by the drawback office where they were initially filed. Additional documentation regarding these requests should be sent to the current processing drawback office.

The Drawback supervisor contact information has been posted to the Center directory on CBP.gov using this link: Centers of Excellence and Expertise Directory | U.S. Customs and Border Protection (cbp.gov).

Questions concerning the transition should be directed to CEE@cbp.dhs.gov.