CCS Drawback and Duty Relief Programs

Question 1

What is customs drawback under US trade law?

Accepted Answer

A refund of duties paid on imported merchandise that is subsequently exported or destroyed

Answer

Drawback is the refund of up to 99% of customs duties, taxes, and fees paid on imported merchandise that is later exported or destroyed under CBP supervision.

Question 2

What is the maximum percentage of duties, taxes, and fees recoverable through a US customs drawback claim?

Accepted Answer

99% of duties, taxes, and fees paid on the imported merchandise

Answer

US law limits drawback recovery to 99% of duties, taxes, and fees paid, with the government retaining 1% to cover administrative costs.

Question 3

What is 'manufacturing drawback' in US customs law?

Accepted Answer

A drawback for duties paid on imported materials used to manufacture articles that are subsequently exported

Answer

Manufacturing drawback (direct identification or substitution) allows recovery of duties on imported materials incorporated into manufactured articles that are subsequently exported from the US.

Question 4

From what date does the 5-year clock generally run for filing a drawback claim?

Accepted Answer

The date of importation of the merchandise on which drawback is claimed

Answer

The 5-year filing deadline for drawback claims runs from the date of importation of the merchandise, not from the date of exportation.

Question 5

Which CBP system must be used to file drawback claims electronically?

Accepted Answer

ACE (Automated Commercial Environment)

Answer

Drawback claims are filed electronically through CBP's ACE (Automated Commercial Environment), which is the single window for all US trade transaction processing.

(CCS) Certified Customs Specialist Practice Test

(CCS) Certified Customs Specialist Practice Test

CCS Drawback and Duty Relief Programs