Duty Drawback Definitions

Term Definition
Abstract Summary of the actual production of records of the manufacturer.
Certificate of Delivery Customs Form 7552.  Delivery Certificate for Purposes of Drawback, summarizing information contained in original documents, establishing: The transfer from one party to another; and  The identity of such merchandise or article as being that to which a potential drawback exists;  and The assignment of drawback rights for the merchandise or article transferred from the transferor to the transferee.
Certificate of Manufacture and Delivery Customs Form 7552, Delivery certificate for Purposes of Drawback, summarizing information containing in original documents establishing:  The transfer of an article manufactured or processed from one party to another; and The identity of such article as being that to which a potential right to drawback exists; and The assignment of drawback rights for the article transferred from the transferor to the transferee.
Commercially Interchangeable Merchandise Same kind and quality merchandise.  Customs shall evaluate critical properties of substituted merchandise.
Designated Merchandise Either eligible imported duty-paid merchandise or drawback products selected by the drawback claimant as the basis for drawback; or Qualified articles selected by the claimant as the basis for drawback.
Destruction Complete destruction of articles or merchandise to the extent that they have no commercial value.
Direct Identification Drawback Drawback on imported merchandise used to manufacture or product an article which is either exported or destroyed without having been used in the United States.  Merchandise or articles may be identified for purposes of direct identification drawback by use of the accounting methods.
Drawback The refund or remission, in whole or part, of customs duty, fee or internal revenue tax which was imposed on imported merchandise at time of importation, and the refund of internal revenue taxes paid on domestic alcohol.
Drawback Claim Drawback entry and related documents required by regulation which together constitute the request for drawback payment.
Drawback Entry the document containing a description of, and other required information concerning, the exported or destroyed article on which drawback is claimed.  Drawback entries are filed on Customs Form 7551.
Drawback Product A finished or partially finished product manufactured in the United States.
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.  Or Goods admitted into a foreign trade zone under zone-restricted status, or are laden upon qualifying aircraft or vessel.
Exporter That person who, as the principal party in interest in the export transaction, as the power and responsibility form determining and controlling the sending of the items out of the United States.
Fungible Merchandise or Articles Merchandise or articles which are identical and interchangeable in all situations.
General Manufacturing Drawback A description of a manufacturing or production operation fro drawback and the regulatory requirements and interpretations applicable to that operation.
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 new and different article definition.
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.
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 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 identifiable costs, which accrue after the product itself is processed.
Schedule A document filed with Customs showing the quantity of imported or substituted merchandise used in or appearing in each article exported or destroyed for drawback.
Specific Manufacturing Drawback A letter of approval issued by Customs Headquarters in response to an application by a manufacturer or producer for a ruling on a specific manufacturing or production operation for drawback.  Subject to provisions of Title 19 CFR part 177.
Substituted Merchandise 1. (Manufacturing Drawback) Same kind and quality as the imported designated merchandise.  Must be capable of being used interchangeably in the manufacture or production of the export or destroyed articles.   2. (Unused Drawback) Substituted merchandise must be commercially interchangeable with the imported merchandise.  3.  (Petroleum derivatives) Same kind and quality as the qualified article for which it is substituted.