ABI: Automated Broker Interface. An integral part of the Automated Commercial System (ACS), ABI is the means by which brokers or importers transmit entry and release data to the U.S. Customs and Border Protection (CBP).
Abstract: There are two ways in which a claimant may show the quantity of material used or appearing in an exported article; by an “abstract” or by a “schedule.” An abstract is a summary of the manufacturer’s actual production records which shows the total quantity used/appearing in producing the articles during a specific time period.
Accelerated Payment: A privilege for claimants of drawback that certifies payment of drawback claims within 3 weeks after filing, if an implemented component for electronic filing has been used, and within 3 months if the claim is filed manually. This privilege must be applied for in writing by the claimant to the drawback office where claims will be filed. Accelerated drawback is paid for approved applicants who have filed the required bond only if Customs preliminary review of the request for accelerated drawback in the drawback claim does not find omissions from, or inconsistencies with, the drawback law and regulations.
Accounting Method: Identification by accounting method is used when the actual unit-for-unit identification of fungible merchandise or articles is lost (generally, when such merchandise or articles are commingled or recorded in a common inventory). Thus, identification by accounting method benefits drawback claimants in that, when such a method can be used, merchandise or articles do not have to be physically separated and tracked unit-by-unit.
Agent: A person employed to do part, or all, of the manufacture of the exported goods for drawback on behalf of the claimant.
Applications: One-time Waiver of Prior Notice, Waiver of Prior Notice, Accelerated Payment are privileges for drawback claimants that must be applied for. These are generally summed up as “applications” for new drawback claimants.
Certificate of Delivery: Filed on Customs Form 7552 when required to show the transfer of imported duty-paid merchandise, substituted merchandise under subsection 1313(j)(2), or an article manufactured or produced under subsection 1313(a) or (b) by a person other than the manufacturer or producer. A certificate of delivery documents the delivery of, and the assignment of drawback rights for, the merchandise or article.
Certificate of manufacture and delivery: Filed on Customs Form 7552 when an article or drawback product manufactured or produced under a general manufacturing drawback ruling or a specific manufacturing drawback ruling is transferred from the manufacturer or producer to another party, a certificate of manufacture and delivery shall be prepared and certified by the manufacturer.
Claimant: The claimant may be the exporter or destroyer of the merchandise designated for drawback. The right to claim drawback may be endorsed by said party to the importer or any intermediate party.
Commercially interchangeable: Commercially interchangeable imported and other merchandise may be substituted under certain drawback provisions instead of requiring fungibility for substitution. This change was intended to permit substitution of merchandise when it is “commercially interchangeable” rather than when it is “commercially identical.” In determining commercial interchangeability, Customs is to evaluate the critical properties of the merchandise and in that evaluation factors to be considered include, but are not limited to, Governmental and recognized industrial standards, part numbers, tariff classification and value.
Designated Merchandise: Either eligible imported duty-paid merchandise or drawback products selected by the drawback claimant as the basis for a drawback claim under substitution drawback, or qualified articles selected by the claimant as the basis for drawback under substitution of finished petroleum derivatives drawback.
Direct Identification Drawback: Direct ID is a type of drawback on imported merchandise that has been exported or destroyed, or on merchandise that is used to manufacture an article that is subsequently exported or destroyed without having been used in the United States. For these drawback purposes, merchandise may be identified by use of approved accounting method (FIO, LIFO, LO-HI).
Drawback: A refund of duty paid on imported merchandise that is linked to an exportation or destruction of an article. In addition to duty refunds, other dues paid upon importation may be refunded, such as Harbor Maintenance Fees, Merchandise Processing Fees and taxes paid on domestic alcohol.
Drawback Center: Drawback offices are located at four CBP ports: Chicago, IL; Houston, TX; Newark, NJ; and San Francisco, CA.
Drawback Claim: The Drawback Entry and related documents as part of a whole, which constitutes the request for drawback refund payment.
Drawback Entry: Filed on Customs Form 7551, the Drawback entry requests information for the merchandise being claimed for drawback.
Drawback Product: Finished or partially finished product(s) manufactured in the United States that qualify for duty drawback
Exportation: The severance of goods from the mass of goods belonging to this country, with the intention of uniting them with the mass of goods belonging to some foreign country. When goods are admitted into a foreign trade zone in zone-restricted status, or are laden upon qualifying aircraft or vessels as aircraft or vessel supplies, they may be deemed an exportation.
Exporter: The principal party in interest in the export transaction, has the power and responsibility for determining and controlling the sending of the items out of the United States.
Fungible Merchandise or Articles: Merchandise or articles which for commercial purposes are identical and interchangeable in all situations.
General Manufacturing Ruling: A general manufacturing drawback ruling means a description of a manufacturing or production operation for drawback and the regulatory requirements and interpretations applicable to that operation.
Low to High Accounting Method: Used in both unused and manufacturing drawback, this accounting method dictates how imports and exports are matched for a drawback claim based on the lowest amount of duty per imported unit. Lowest duty value imports are matched to exports first.
Manufacture or Production: A process, including, but not limited to, an assembly, by which merchandise is made into a new and different article having a distinctive name, character or use; or is made fit for a particular use even though it does not meet the requirements of being a new and different article.
Multiple Products: Two or more products produced concurrently by a manufacture or production operation or operations (e.g. production of petrochemical products from crude oil.)
Notice of Intent: A notice of intent to export merchandise which may be the subject of an unused merchandise drawback claim must be provided to the Customs Service to give Customs the opportunity to examine the merchandise. The claimant, or the exporter, must file at the port of intended examination a Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on Customs Form 7553 at least 2 working days prior to the date of intended exportation unless Customs approves another filing period or the claimant has been granted a waiver of prior notice.
One Time Waiver of Prior Notice: A privilege for claimants of unused merchandise drawback that waives the requirement of prior notice of intent to export merchandise for one transaction. This privilege must be applied for in writing by the claimant to the drawback office where claims will be filed. This privilege is usually applied for by claimants on their first drawback submission as the merchandise they wish to claim drawback on have already been exported and may not be inspected by Customs.
Possession: Physical or operational control of the merchandise, including ownership while in bailment, in leased facilities, in transit to, or in any other manner under the operational control of, the party claiming drawback.
Records: Include, but are not limited to, statements, declarations, documents and electronically generated or machine-readable data which pertain to the filing of a drawback claim.
Relative Value: The value of a product divided by the total value of all products which are necessarily manufactured or produced concurrently in the same operation. Relative value is based on the market value, or other value approved by Customs, of each such product determined as of the time it is first separated in the manufacturing or production process. Market value is generally measured by the selling price, not including any packaging, transportation, or other identifiable costs, which accrue after the product itself is processed. Drawback law requires the apportionment of drawback to each such product based on its relative value at the time of separation (e.g. MPF drawback is allocated to each line item on an import invoice by its value relative to the other lines on an invoice. Line value divided by total value, multiplied by the total MPF is equal to the value of MPF for a given line.)
Schedule: A schedule is the predicted production from the raw materials and shows the quantity of merchandise per unit of product. For example, a schedule could show that for every 10-pound unit of exports, 4 pounds of imported or substituted merchandise were used in its production, or appear in it. Unless a claimant indicates otherwise regarding its general or specific manufacturing drawback ruling, the abstract method is used. Regardless of the method selected, the claimant must be able to demonstrate that the abstract or schedule accurately reflects the actual production.
Specific Manufacturing Ruling: A letter of approval issued by Customs Headquarters in response to an application for drawback, by a manufacturer or producer for a ruling on a specific manufacturing or production operation, as described in the format used. Specific manufacturing rulings are individualized to a specific claimant, whereas general manufacturing rulings are issued for common manufacturing operations.
Substituted Merchandise: Merchandise that is interchangeable with imported merchandise that is claimed for drawback. The merchandise may be sourced domestically or imported, if it meets the same specifications as the imported goods being claimed for drawback. The merchandise considered as “substituted” is the merchandise that is used in production of the exported articles (manufacturing drawback) or the merchandise that is exported (unused drawback.)
Third Party Transaction: Drawback eligible transactions that involve multiple companies importing and exporting the drawback merchandise.
Waiver of Prior Notice: A privilege for claimants of unused merchandise drawback that waives the requirement of prior notice of intent to export merchandise. This privilege must be applied for in writing by the claimant to the drawback office where claims will be filed.