Our team has extensive experience with unused /same condition drawback.
If you’re looking to take advantage of the same condition drawback, we can help you get there.
In 1980, Congress amended the drawback law to provide for “same condition” drawback, a refund of 99% of duties, fees and taxes paid with respect to imported merchandise which is subsequently exported (or destroyed under Customs supervision) within three years after its date of importation, without having been changed.
Under unused drawback there are several types of drawback and depending on your supply chain will determine the path forward.
Unused Direct Identification – 1313j1
This drawback is most common on exports to Canada and Mexico and on items that are classified as other other or the “basket provision”
- Refunds of duty paid on goods directly matched by part number to the export within 5 years after importation by either:
- Direct Match by Serial Number
- Match using Customs an approved accounting methods
- Refund calculated based on Invoice quantity and invoice value
- May claim on exports to
- Canada & Mexico.
- American Virgin Islands (St. John, St. Thomas, St. Croix)
- Wake Island
- Midway Island
- Kingman Reef
- Canton Island
- Edinburgh Island
- Johnson Island
- Palmyra Island
Unused Substitution Drawback– 1313j2
This type of drawback is usually applicable on exports going to Non-USMCA countries and if the goods are not classified as other/other or “basket provision”
- Refunds of duty paid on goods matched by HTS number to the export within 5 years after importation.
- Export Value per unit is a factor in refund calculation.
The new laws passed in 2018 known as TFTEA has some significant changes in how we approach 1313J2
Trade Facilitation and Trade Enforcement Act of 2015
What You Need to Know TFTEA
After 12 years of consistent effort on the part of Customs and Trade, The Trade Facilitation and Trade Enforcement Act of 2015 was passed into law and signed by the President on February 24, 2016. This law will become effective on February 24, 2018. At that point, there will be a one year transition period where drawback claimants may file drawback claims under the new law or under the old law. However, on February 24, 2019, all drawback claims must be filed using the new duty drawback law. The duty drawback regulations have not yet been written.
TFTEA 2015 Highlights
The following are some of the main highlights of this new law:
Drawback claims will be matched based on 8-digit HTS substitution rather than commercial interchangeability. However, if the 8-digit classification starts with “other”, then the matching will be based on 10-digit HTS classification.
Drawback time frames will be 5 years from import to filing a drawback claim.
Drawback record keeping will be pushed out further from 3 years from payment of the drawback claim to 3 years from liquidation of the drawback claim.
Claims on MPF and HMF will be available for manufacturing drawback in addition to unused drawback.
The requirement for Certificates of Delivery will be removed and business records kept in the normal course of business will be used to track these transfers.
The duty to be claimed for manufacturing substitution will be based on the lesser of the duties paid on the imported merchandise compared to the duties paid on the substituted merchandise if it were imported.
The duty to be claimed for unused substitution will be based on the lesser of the duties paid on the imported merchandise compared to the duties paid on the exported article if it were imported.
Petroleum Derivatives – 1313p
Refunds of duty paid on goods matched by specific HTS numbers to the export within 5 years after importation.
Matching imports are limited to 6 months prior to the export date.
Refunds of your excess unclaimed imports and excess unclaimed exports.
JMR has developed a unique process that allows our customers to find more drawback opportunities.
Please contact JMR to discuss this further.
At JMR we have very extensive Audit Process, we understand the importance of being compliant. We Audit 100% of all our drawback claims to ensure that your company is in full compliance with U.S. Customs regulations also ensuring all your drawback claims are filed and liquidated at their full amount.
To accomplish this, we review every single one of your drawback claims. We request sample documents such as the Import Entry, Commercial Invoice and Packing List on the import side and Commercial Invoice and Proof of Export Documents (BOL, Shipping Label/POD, B3, Pedimento) on the export side. We then compare the information within the data to the printed documents and make sure that the data is accurate – key fields include Import Entry, Line Number, HTS, Part Number, Quantity, UOM, Value, Duty, Export Date, etc.
We do this for every claim because we want you to have confidence in our work!