What is an unused merchandise drawback?
- Products subject to this drawback must be imported with duty and fees paid
- Products must be unused in the U.S.
- Products must be exported or destroyed within three years of the date of importation
- CBP must be given an opportunity to inspect merchandise prior to exportation, with certain exceptions permitted
- Documentary proof must be available to establish the items exported are identical to those imported (commercial invoices, Bills of Lading or Airway Bills and the inbound entry summary)
- Substitution of commercially interchangeable material with the imported merchandise permitted if the commercially interchangeable material is exported or destroyed within the three year period
- Drawback merchandise may have been acquired from the original importer or through a succession of prior owners if the chain of ownership and original payment of duty and fees are documented by normal business records
- Merchandise determined damaged or out of specification at the time of importation or merchandise received but not ordered will be treated as unused merchandise for purpose of drawback