Modernized Duty Drawback Has Officially Arrived

On December 17, 2018, the long anticipated final ruling for duty drawback regulations went into effect. These changes and processes were directed by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA).

See Full Ruling From USTR

Here are some important changes to keep in mind:

  • The release of the final rule now allows claimants filing TFTEA claims to receive AP (Accelerated Payment).
  • Simplified merchandise substitution standard.
    • Substitution unused merchandise is now based on the 8 digit HTS or Schedule B. Then using the new per unit average methodology for the calculation of the claims.
    • Substitution manufacturing values are to be calculated based on either the cost of acquisition or cost of production.
    • The lesser of rule will apply to substitution manufacturing and unused substitution merchandise.  This means the drawback allowable will not exceed 99 percent of the lesser of the duties, taxes, and fees paid on the imported merchandise or the substituted merchandise if the substituted merchandise were imported.
  • Record keeping requirements are now 3 years from the date of liquidation.
  • Standard timelines for filing of the claims. They are all now 5 years from date of importation to the filing of the claim date.
  • Electronic filing mandatory. Manual filings are no longer accepted after February 23, 2019.
  • The new first filed rule limits a single import entry summary line to a single method of calculation of refunded amounts. 
  • CBP will now allow mixed claims with supporting documentation past the interim period. 
  • The CD (certificate of delivery) and CM&D (certificate of manufacturer and delivery) are no longer required and the details of these documents can now be kept in the normal course of business.
  • TFTEA claims require line level reporting from the import entry.
  • Manufacturing rulings will need to be modified to comply with the new TFTEA drawback laws.

For more information regarding the final duty drawback ruling, click here.

If you have additional questions, please contact Ascent Global Logistics or reach out to our Duty Drawback team directly.

Thank you,

Carie Samuel
Vice President Trade Compliance
Ascent Global Logistics International Freight Forwarding