Duty-paid import
- HTSUS
- Same 8-digit HTS
- Origin
- Imported, duty paid
Filing Provision
Petrochemical drawback explained.
The petrochemical drawback filing provision allows for the refund of duties on the export of domestically produced petrochemicals in exchange (substituted) for chemicals imported into the United States, so long as they both fall within the same 8-digit HTSUS classification.
180 daysThe import and export must fall within 180 days of each other
8 digitsSame 8-digit HTS for the imported and exported product
Any originThe exported petroleum product qualifies regardless of origin
Here’s an example
Here’s an example of petrochemical drawback.
Petrochemical drawback allows you to substitute exported petrochemicals at the 8-digit HTSUS.
United States
Enters the U.S.Duty, taxes and fees paid
Leaves the U.S.99% refundable
Within 180 days
The import and the export must fall within 180 days of each other
- Any origin
- Same 8-digit HTS
- USMCA country or US territory
Qualifying export
- HTSUS
- Same 8-digit HTS
- Origin
- Any origin
Matched bySame 8-digit HTS, within 180 days
The exported petroleum product qualifies whatever its origin, provided it shares the same 8-digit classification as the duty-paid import and the two fall within 180 days of each other.
Export cannot be to a USMCA country or US territory
Exported product qualifies regardless of origin
Scope
Which articles qualify under 1313(p)?
Petrochemical drawback applies two separate classification tests. The first decides whether an article is eligible at all. The second decides whether an export can be matched to an import.
Is the article within scope?
The statute and the regulation list the eligible classifications directly. Most are stated at the four-digit heading level, with a handful of narrower subheadings called out. Everything falling under a listed heading is within scope.
Chapter 27Mineral fuels and oils
- 2707
- 2708
- 2709.00
- 2710
- 2711
- 2712
- 2713
- 2714
- 2715
Chapter 29Organic chemicals
- 2901
- 2902
- 2903.21.00
- 2909.19.14
- 2917.36
- 2917.39.04
- 2917.39.15
- 2926.10.00
Chapter 38Miscellaneous chemical products
- 3811.21.00
- 3811.90.00
Chapter 39Plastics
- 3901 through 3914
Is the export of the same kind and quality?
This is where the eight-digit level applies. An export is of the same kind and quality as the qualified article if it is referred to under the same 8-digit HTSUS classification, or if it is commercially interchangeable with it.
Grandfather rule
19 U.S.C. 1313(p)(3)(B) · 19 CFR 190.172(b), 190.176(c)(2)(ii)
If two articles shared the same 8-digit classification on January 1, 2000, they are still treated as sharing it today, even if either has since been reclassified.
19 CFR Part 190
The regulatory language of petrochemical drawback.
Modernized Drawback, 19 CFR Part 190. Read the full part at eCFR.
§ 190.171(a) General
Section 313(p) of the Act, as amended (19 U.S.C. 1313(p)), provides for drawback for duties, taxes, and fees paid on qualified articles (see definition below) which consist of either petroleum derivatives that are imported, duty-paid, and qualified for drawback under the unused merchandise drawback law (19 U.S.C. 1313(j)(1)), or petroleum derivatives that are manufactured or produced in the United States, and qualified for drawback under the manufacturing drawback law (19 U.S.C. 1313(a) or (b)).
§ 190.171(b) Allowance of drawback
Drawback may be granted under 19 U.S.C. 1313(p):
(1) In cases where there is no manufacture, upon exportation of the imported article, an article of the same kind and quality, or any combination thereof; or
(2) In cases where there is a manufacture or production, upon exportation of the manufactured or produced article, an article of the same kind and quality, or any combination thereof.
§ 190.171(c) Calculation of drawback
For drawback of finished petroleum derivatives pursuant to section 1313(p), the claimant is required to calculate the total amount of drawback due, for purposes of § 190.51(b), which will not exceed 99 percent of the allowable duties, taxes, and fees, subject to the following:
(1) Per unit averaging calculation. The amount of duties, taxes, and fees eligible for drawback is determined by per unit averaging, as defined in § 190.2, for any drawback claim based on 19 U.S.C. 1313(p) pursuant to the standards set forth in § 190.172(b) and without respect to the limitations set forth in subparagraphs (B) and (C) of 19 U.S.C. 1313(l).
(2) Limitations. The amount of duties, taxes, and fees eligible for drawback is not subject to the limitations set out in 19 U.S.C. 1313(p)(4) for unused merchandise claims (no manufacture) and manufacturing claims (see 190.173(e) and 190.174(f)).
(3) Federal excise tax. For purposes of drawback of internal revenue tax imposed under Chapters 32 and 38 (with the exception of Subchapter A of Chapter 38) of the Internal Revenue Code of 1986, as amended (IRC), drawback granted on the export of substituted merchandise will be limited to the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise.
Keep exploring
Related drawback topics.
Where this provision sits inside the wider duty drawback framework.
Duty Drawback Explained
Start with the fundamentals.
How the drawback lifecycle works, the four statutory filing provisions, and what is eligible for refund.
Back to drawback explainedDrawback Trading
Applicable only under 1313(p).
Drawback trading uses a third-party trading company to align unaffiliated companies with excess imports and exports under the same 8-digit HTSUS classification.
Learn about drawback tradingFree Drawback Assessment
Find out what you can recover.
A licensed drawback specialist reviews your import and export activity at no cost and no obligation.
Start your assessmentDuty Drawback Software
The optimization engine.
How Apollo evaluates every compliant import to export combination and solves for the highest recovery, rather than matching in sequence.
Learn more about Apollo
Common questions
Petrochemical drawback, answered.
What is petrochemical drawback?
Petrochemical drawback is the refund of import duties on qualifying chemicals under 19 U.S.C. 1313(p). Imported chemicals are matched to exported petrochemicals that share the same 8-digit HTSUS classification, and the exported product qualifies regardless of its origin.
Which products qualify for petrochemical drawback?
Chemicals and petrochemicals where the imported product and the exported product fall within the same 8-digit HTSUS classification.
What is the time limit for petrochemical drawback?
The imported chemical and the exported petrochemical must fall within 180 days of each other.
Does the exported petrochemical have to be the imported one?
No. Petrochemical drawback is a substitution provision. A domestically produced petrochemical export qualifies regardless of origin, provided it shares the same 8-digit HTSUS classification as the imported chemical.