Summary of the actual production records of the manufacturer. When preparing a manufacturing drawback claim, a claimant can either choose the abstract method, which requires the use of actual production records, or the schedule method, which essentially provides a standard bill of material listing for the exported articles. Any component part manufacturing operation typically uses a bill of materials schedule when preparing its claims, while a manufacturing operation with significant variances from production run to production run (certain petrochemical processes for example).
Various approved methodologies used to match export transactions with designated import transactions for drawback purposes. Approved drawback accounting methods are used only for the purpose of complying with the direct identification requirements for drawback filed under 1313(j)(1) or 1313(a). A claimant’s selected accounting method does not actually need to reflect their actual accounting method utilized either for inventory or federal income tax purposes.
An outside entity that performs all, or a portion of, the manufacture process on behalf of the drawback claimant. By definition, the agent does not take title of the merchandise and only adds value during the manufacturing process.
Certificate of Delivery
Customs Form 7552. Delivery Certificate for Purposes of Drawback, summarizing information contained in original documents, establishing: The transfer from one party to another; and the identity of such merchandise or article as being that to which a potential drawback exists; and, the assignment of drawback rights for the merchandise or article transferred from the transferor to the transferee, commonly referred to as a “third-party” drawback transaction. The certificate of delivery transfers the potential drawback associated with a specific import transaction from the importer of record to another commercial entity that purchased the imported merchandise.
Certificate of Manufacture and Delivery
Customs Form 7552, Delivery certificate for Purposes of Drawback, summarizing information contained in original documents, establishing: The transfer of an article manufactured or processed from one party to another; and The identity of such article as being that to which a potential right to drawback exists; and the assignment of drawback rights for the article transferred from the transferor to the transferee.
Commercially Interchangeable Merchandise
Merchandise that is the same for the purpose of drawback under the provisions of 1313(j)(2). Customs shall evaluate critical properties of substituted merchandise including but not limited to part number, classification, industry specification, and HTS number.
Either eligible imported duty-paid merchandise or drawback products selected by the drawback claimant as the basis for drawback; or qualified articles selected by the claimant as the basis for drawback. Simply put, imports selected for inclusion on a drawback entry.
Complete destruction of articles or merchandise to the extent that they have no commercial value.
Direct Identification Drawback
Drawback on imported merchandise used to manufacture or produce an article which is either exported or destroyed without having been used in the United States authorized under 1313(j)(1) or 1313(a). Direct ID is a methodology of matching exports to designated imports exactly, either using lot number or serial number tracing, or through the use of an acceptable accounting method (FIFO, LIFO, LO to HI, etc.)
The refund or remission, in whole or part, of customs duty, fee, or internal revenue tax which was imposed on imported merchandise at time of importation, and the refund of internal revenue taxes paid on domestic alcohol. Destruction, transfer to an FTZ under zone-restricted status, or most commonly exportation triggers the opportunity for the refund of import duties via the drawback provision of USC 1313.
Drawback entry and required electronic data elements which together constitute the request for drawback payment.