What is drawback?
Drawback is the refund of import duties on imported merchandise that is subsequently re-exported. The drawback law is found in the Tariff Act of 1930 while the regulations can be found in Part 191 of the US Customs Regulations. There are 2 primary kinds of drawback claims: Unused Merchandise Drawback – Drawback on imported merchandise exported in essentially the same condition. Manufacturer’s Drawback – Drawback on imported merchandise subjected to an assembly or production process prior to export. The imported item is exported as a component of a finished article. Note: A valid export triggers the drawback opportunity, i.e. the severance of goods from the United States with the purpose of transferring them to the commerce of another country. U.S. territories, for example Puerto Rico and the U.S. Virgin Islands, do not qualify as an export destination for drawback purposes.
