1313(j)(3)(B), on the substituted merchandise is not a use of that merchandise for purposes of this section. Note: Unused substitution drawback (under 1313(j)(2)) on exports to Canada or Mexico is not available. 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.” 1313(j)(2)), provides for drawback of duties, taxes, and fees paid on imported merchandise based on the export or destruction under CBP supervision of substituted merchandise (as defined in § 190.2, pursuant to 19 U.S.C. 1313(x)). J1: Direct Identification J2: Substitution Lot Number, Serial Number, or Drawback Accounting Method Match like Merchandise within time frames. Rodgers Co., Inc is a 3rd generation, family owned corporation that has redefined the role of a service provider for companies that demand more than “formula” service that others provide. It is possible that the dishwashers contain all domestically produced motors of the same “kind and quality as the imported motors, or Umbrella cannot tell which motors were installed into dishwashers due to their manufacturing and inventory process. (e) Operations performed on substituted merchandise. Bills of Material must contain the HTS numbers for ALL components used in manufacture, 99% of the lesser of the amount of duties, taxes and fees paid with respect to the imported components and the amount of duties, taxes and fees paid that would apply to the components if the components were imported, Claim attachments identify part number and quantity used in manufacture, Claim attachments identify merchandise used in manufacture by 8 digit HTS number. Section 1313(j)(2)] is a 99% refund of duties paid on imported goods when other “commercially interchangeable” domestic or foreign goods are exported. (ii) The amount of duties, taxes, and fees that would apply to the destroyed article if the destroyed article had been imported (after the value of the imported merchandise has been reduced by the value of materials recovered during destruction as provided in 19 U.S.C. For many companies, this initial recovery of duty can be quite substantial. Substitution Same Condition/Unused Merchandise Drawback In 1984, Congress again amended the drawback law to provide for “substitution” same condition drawback. Umbrella then manufactures and assembles 1000 dishwashers with a single motor in each one and exports 500 of them to customers in foreign markets. Section 1313(j)(2)] is a 99% refund of duties paid on imported goods when other “commercially interchangeable” domestic or foreign goods are exported. For purposes of drawback of internal revenue tax imposed under Chapters 32, 38, 51, and 52 of the Internal Revenue Code of 1986, as amended (IRC), drawback granted on the export or destruction of substituted merchandise will be limited to the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise. Even if you don’t do both, you may still be able to qualify as long as but importing and exporting happen along your supply chain. ever more complicated. In addition to the 8-digit HTSUS substitution standard in § 190.2, drawback of duties, taxes, and fees, paid on imported wine as defined in § 190.2 may be allowable under 19 U.S.C. Here’s the exact language of … Brown DHL Drawback Services Attorney in Fact 22210 Highland Knolls Drive Katy Texas, 77450 RE: Unused Merchandise Substitute Drawback Ruling Request Dear Mr. Brown, We are … Unused Merchandise Drawback USC 1313 (j) A refund of duties on imported merchandise exported in essentially the “same condition”. Unused merchandise drawback can be claimed under the direct identification provision of 19 U.S.C. open/close. Requests for binding rulings on the classification of imported, substituted, or exported merchandise may be submitted to CBP pursuant to the procedures set forth in part 177. Recent Court of International Trade findings have held that for drawback substitution under the same 8-digit subheading of the HTSUS rather than “same kind and quality” substitution for manufacturing drawback). 1313 (j) (2) ), provides for drawback of duties, taxes, and fees paid on imported merchandise based on the export or destruction under CBP supervision of substituted merchandise (as defined in § 190.2, pursuant to 19 U. 1313(j)(2) are still ineligible for drawback under NAFTA and USMCA. Substitution Same Condition/Unused Merchandise Drawback: In substitution manufacturing drawback, any other merchandise, whether imported or domestic, of the same kind and quality as the imported merchandise, may be substituted for the imported merchandise. Operations performed on substituted merchandise. For purposes of substitution unused merchandise drawback, 19 U.S.C. Unused merchandise drawback is outlined in subsection (j) of the drawback law 19 U.S.C. §1313(j)(2). For purposes of drawback of internal revenue tax imposed under Chapters 32, 38 (with the exception of Subchapter A of Chapter 38), 51, and 52 of the Internal Revenue Code of 1986, as amended (IRC), drawback granted on the export or destruction of substituted merchandise will be limited to the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise. Prior to exportation Customs must be advised of an export shipment in order to afford them the opportunity to examine the export shipment. 1313(j)(1) or under the substitution provision under 19 U.S.C. At the same factory, there are also duty-free motors that were manufactured in the Caribbean. J.M. The designated import must fall within the three-year period prior to the export date. Substitution Unused Merchandise Drawback (19 U.S.C. 4. However, if the 8-digit classification starts with “other”, then the matching will be based on 10-digit HTS classification. 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