Glossary of Duty Drawback Terms
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ABI (Automated Broker Interface)
An integral part of the Automated Commercial Environment (ACE). ABI is the means by which brokers, importers, and drawback claimants transmit entry and release to CBP.
Abstract means the summary of the actual production records of the manufacturer.
Identification by accounting method is used when the actual unit-for-unit identification of fungible merchandise or articles is lost (generally, when such merchandise or articles are commingled or recorded in a common inventory). Thus, identification by accounting method benefits drawback claimants in that, when such a method can be used, merchandise or articles do not have to be physically separated and tracked unit-by-unit. Identification by accounting method is distinguished from substitution. In the case of the latter, the person claiming benefit of the substitution may substitute any unit or lot of merchandise or articles as long as the criteria and conditions for substitution are met. In the case of the former, a unit or lot of merchandise or articles must be identified consistent with the accounting procedure used (e.g., if FIFO is used, the oldest unit of merchandise or articles in the inventory is that identified regardless of whether identification of that unit is favorable or unfavorable to the person claiming the benefit of the accounting method).
ACH (Automated Clearinghouse)
An electronic payment program that allows ABI filers to pay CBP duties, taxes, and fees with one electronic transaction.
Act, unless indicated otherwise, means the Tariff Act of 1930, as amended.
A term from Latin means “according to value”; usually refers to a tax, duty, or charge based on the cargo’s value.
Ad Valorem Duty
Duty and taxes which are calculated on the basis of value.
ADD & CVD (Antidumping and Countervailing Duty)
Selling below home market prices or cost of manufacture with material injury to an U.S. manufacturer is called dumping. Countervailing duty is levied when imported merchandise receives a bounty or grant when exported with material injury to an U.S. manufacturer.
AES (Automated Export System)
The system for collecting EEI (or any successor to the Shipper’s Export Declaration) from persons exporting goods from the United States, Puerto Rico, or the U.S. Virgin Islands; between Puerto Rico and the United States; and to the U.S. Virgin Islands from the United States or Puerto Rico. The AES is currently accessed through the Automated Commercial Environment.
AESTIR (Automated Export System Trade Interface Requirements)
The document that describes the technical and operational requirements of the AES. The AESTIR presents record formats and other reference information used in the AES.
A person employed by an owner of the identified merchandise, the designated imported merchandise and/or the substituted other merchandise that is used to produce the exported articles, to do part, or all, of the manufacture or production under direct identification manufacturing drawback or substitution manufacturing drawback.
AII (Automated Invoice Interface)
AII permits invoice data to be transmitted electronically to the CBP Data Center.
The shipping document used for the transportation of air freight includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes.
AMS (Automated Manifest System)
The Automated Manifest System for air and ocean carriers.
Bill of Lading
A document that establishes the terms of a contract under which freight is to be
moved between specified points for a specified charge. It is issued by the carrier based on instructions provided by the shipper or its authorized agent. It may serve as a document of title, a contract of carriage, and a receipt for goods.
Bill of materials
Bill of materials refers to a record that identifies each component incorporated into a manufactured or produced article (and includes components used in the manufacturing or production process). This may include a record kept in the normal course of business.
BIS (Bureau of Industry and Security)
This bureau within the U.S. Department of Commerce is concerned with the advancement of U.S. national security, foreign policy, and economic interests. The BIS is responsible for regulating the export of sensitive goods and technologies; enforcing export control, antiboycott, and public safety laws; cooperating with and assisting other countries on export control and strategic trade issues; and assisting U.S. industry to comply with international arms control agreements
A binding agreement that is presented to Customs by an importer, guaranteeing the performance or nonperformance of a specified act.
A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
A reservation made with a carrier for a shipment of goods on a specific voyage, flight, truck or train.
An intermediary who negotiates terms for charters, insurance, sales and purchase of ships and/or generation of cargo. Not normally the owner of a ship or of the cargo being negotiated.
Business Proprietary Information (BPI)
SEE CBI (CONFIDENTIAL BUSINESS INFORMATION)
An international Customs document which may be used, in lieu of national Customs documents and as security for import duties and taxes, to cover the temporary admission of goods (for display, demonstration or similar purposes) and, where appropriate, the transit of goods.
An individual or legal entity in the business of transporting passengers or goods. Airlines, trucking companies, railroad companies, shipping lines, pipeline companies, slot charterers, and Non-Vessel Operating Common Carriers (NVOCCs) are all examples of carriers.
CATAIR (CBP and Trade Automated Interface Requirements)
Provides complete information describing how importers and drawback claimants and/or their agents can become Automated Broker Interface (ABI) participants, as well as how they can provide electronic import information or drawback entries to ABI, and receive transmissions from ABI once they have become a participant.
CBI (Confidential Business Information)
19 C.F.R. §201.6. The regulations define confidential business information as information which concerns or relates to the trade secrets, processes, operations, style of works or apparatus, or to the production, sales, shipments, purchases, transfers, identification of customers, inventories, or amount or source of any income, profits, losses, or expenditures of any person, firm, partnership, corporation, or other organization, or other information of commercial value, the disclosure of which is likely to have the effect of either impairing the Commission’s ability to obtain such information as is necessary to perform its statutory functions, or causing substantial harm to the competitive position of the person, firm, partnership, corporation, or other organization from which the information was obtained, unless the Commission is required by law to disclose such information.
Parties can request confidential treatment of BPI and CBI during the Commission’s investigations. Certain statutes and the Commission’s regulations provide for the limited disclosure of certain BPI and CBI under an administrative protective order.
CBP (U.S. Customs and Border Protection)
The border agency within the Department of Homeland Security (DHS) charged with the management, control, and protection of our Nation’s borders at and between the official ports of entry of the United States.
Certificate of Origin
An international business document that certifies the country from which a consignment of goods originates.
Entry documents prepared when duty has already been paid on goods being entered, e.g. goods short shipped, goods exported, being re-imported, goods sent out the country for repairs, and goods cleared by deposit entry (See abbreviations C.D.D. and C.S.D.) The certified entry is cross referenced against the relevant entry and the importer is asked to make a declaration by oath.
Each collection must be properly coded using a classification code to identify the proper CBP account for deposit of monies collected or refund of drawback payments. Multiple class codes may be required to properly distribute a collection or refund.
1) The category defining the tariff to be applied to an imported good;
2) The act of determining this category, which may be subject to various rules and/or to the discretion of the customs officer
Commercial loading document
A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between points for a specific charge. It is usually prepared by the shipper, the shipper’s agent or the carrier and serves as a contract of carriage. Examples of commercial loading documents include the air waybill, ocean bill of lading, truck bill, rail bill of lading, and U.S. Postal Service customs declaration form.
The receiver of a Cargo as per the Bill of Lading, but is not necessarily the end user
Delivery of goods from a USPPI (the consignor) to an agent (consignee) under agreement that the agent sells the goods for the account of the USPPI.
Country of origin
The country where the goods were mined, grown, or manufactured or where each foreign material used or incorporated in a good underwent a change in tariff classification indicating a substantial transformation under the applicable rule of origin for the good. The country of origin for U.S. imports are reported in terms of the International Standards Organization (ISO) codes designated in the Schedule C, Classification of Country and Territory Designations.
CSMS (Cargo Systems Messaging Service)
Messaging service for CBP and PGA’s to deliver relevant messages to subscribers of the trade.
An individual or entity licensed to enter and clear imported goods through CBP for another individual or entity.
Designated merchandise means either eligible imported duty- paid merchandise or drawback products selected by the drawback claimant as the basis for a drawback claim under 19 U.S.C. 1313(b) or (j)(2), as applicable, or qualified articles selected by the claimant as the basis for drawback under 19 U.S.C. 1313(p).
Destruction means the destruction of articles or merchandise to the extent that they have no commercial value. For purposes of 19 U.S.C. 1313(a), (b), (c), and (j), destruction also includes a process by which materials are recovered from imported merchandise or from an article manufactured from imported merchandise, as provided for in 19 U.S.C. 1313(x).
Direct identification drawback
Direct identification drawback includes drawback authorized pursuant to section 313(j)(1) of the Act, as amended (19 U.S.C. 1313(j)(1)), on imported merchandise exported, or destroyed under CBP supervision, without having been used in the United States (see also sections 313(c), (e), (f), (g), (h), and (q)). Direct identification is involved in manufacturing drawback pursuant to section 313(a) of the Act, as amended (19 U.S.C. 1313(a)), on imported merchandise used to manufacture or produce an article which is either exported or destroyed. Merchandise or articles may be identified for purposes of direct identification drawback by use of the accounting methods provided for in § 190.14.
In this part, document has its normal meaning and includes information input into and contained within an electronic data field, and electronic versions of hard-copy documents.
Goods that are grown, produced, or manufactured in the United States, or previously imported goods that have undergone substantial transformation in the United States, including changes made in a U.S. FTZ, from the form in which they were imported, or that have been substantially enhanced in value or improved in condition by further processing or manufacturing in the United States.
Drawback, as authorized for payment by CBP, means the refund, in whole or in part, of the duties, taxes, and/or fees paid on imported merchandise, which were imposed under Federal law upon entry or importation, and the refund of internal revenue taxes paid on domestic alcohol as prescribed in 19 U.S.C. 1313(d). More broadly, drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law.
Drawback claim, as authorized for payment by CBP, means the drawback entry and related documents required by regulation which together constitute the request for drawback payment. All drawback claims must be filed electronically through a CBP- authorized Electronic Data Interchange system. More broadly, drawback claim also includes claims for refund or remission of other excise taxes pursuant to other provisions of law.
Drawback entry means the document containing a description of, and other required information concerning, the exported or destroyed article upon which a drawback claim is based and the designated imported merchandise for which drawback of the duties, taxes, and fees paid upon importation is claimed. Drawback entries must be filed electronically.
Drawback office means any of the locations where drawback claims and related applications or requests may be submitted. CBP may, in its discretion, transfer or share work between the different drawback offices even though the submission may have been to a particular office.
A drawback product means a finished or partially finished product manufactured in the United States under the procedures in this part for manufacturing drawback.
A drawback product may be exported, or destroyed under CBP supervision with a claim for drawback, or it may be used in the further manufacture of other drawback products by manufacturers or producers operating under the procedures in this part for manufacturing drawback, in which case drawback may be claimed upon exportation or destruction of the ultimate product. Products manufactured or produced from substituted merchandise (imported or domestic) also become “drawback products” when applicable substitution requirements of the Act are met. For purposes of section 313(b) of the Act, as amended (19 U.S.C. 1313(b)), drawback products may be designated as the basis for drawback or deemed to be substituted merchandise (see 19 U.S.C. 1313(b)). For a drawback product to be designated as the basis for a drawback claim, any transfer of the product must be properly documented (see § 190.24).
CBP officer responsible for the admissibility, processing, validation, payment, and liquidation associated with duty drawback claims and applications.
The charge made for hauling freight, carts, drays, or trucks.
A charge imposed on the import of goods. Duties are generally based on the value of the goods (ad valorem duties), some other factor, such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).
EAR (Export Administration Regulations)
Regulations administered by the BIS that, among other things, provide specific instructions on the use and types of export licenses required for certain commodities, software, and technology. These regulations are located in 15 CFR parts 730 through 774.
EEI (Electronic Export Information)
Electronic Export Information (EEI) is the export data filed in the Automated Export System (AES). The information collected by the Census Bureau is used for statistical purposes while the Bureau of Industry and Security and other export enforcement agencies use it for export control and enforcement purposes.
EIN (Employer identification number)
The Internal Revenue Service (IRS) EIN is the 9-digit numerical code as reported on the Employer’s Quarterly Federal Tax Return, Treasury Form 941.
ECCN (Export Control Classification Number)
The number used to identify items on the CCL, Supplement No. 1 to Part 774 of the EAR. The ECCN consists of a set of digits and a letter. Items that are not classified under an ECCN are designated “EAR99.” Section 738.2 of the EAR describes the ECCN format.
A classification system for U.S. exported and imported merchandise based on principal use rather than the physical characteristics of the merchandise. End-Use codes are assigned by the Bureau of Economic Analysis under the U.S. Department of Commerce.
The that receives and ultimately uses the merchandise. The end user is not an authorized agent or intermediary but may be the FPPI or ultimate consignee.
A change or modification to goods that increases their value or improves their condition.
Documentation required by and submitted to CBP by an entry filer to secure release of imported merchandise from CBP custody or receive a refund of the duty.
The unique numeric identifier referencing the documentation filed with CBP to secure release and duty payment of imported merchandise or duty drawback refund.
A tax levied on certain goods and commodities produced or sold within a country and on licenses granted for certain activities.
Governmental control of exports for statistical or strategic and short supply or national security purposes, and/or for foreign policy purposes.
Exportation means 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. An exportation may be deemed to have occurred when goods subject to drawback are admitted into a foreign trade zone in zone-restricted status, or are laden upon qualifying aircraft or vessels as aircraft or vessel supplies in accordance with section 309(b) of the Act, as amended (19 U.S.C. 1309(b)) (see §§ 10.59 through 10.65 of this chapter).
Exporter means that person who, as the principal party in interest in the export transaction, has the power and responsibility for determining and controlling the sending of the items out of the United States. In the case of “deemed exportations” (see definition of exportation in this section), exporter means that person who, as the principal party in interest in the transaction deemed to be an exportation, has the power and responsibility for determining and controlling the transaction. In the case of aircraft or vessel supplies under 19 U.S.C. 1309(b), exporter means the party who has the power and responsibility for lading supplies on the qualifying aircraft or vessel.
Fee Value Ratio
Ratio to appropriately apportion the appropriate fees to a designation.
Filer or Filer Code
A unique 3-position alphanumeric identifier assigned by Headquarters to ABI participants who file their own entries.
Filing means the electronic delivery to CBP of any document or documentation, as provided for in this part.
A person that temporarily enters into the United States and purchases or obtains goods for export. This person does not physically maintain an office or residence in the United States.
Goods that were originally grown, produced, or manufactured in a foreign country, then subsequently entered into the United States, admitted to a U.S. FTZ, or entered into a CBP bonded warehouse, but not substantially transformed in form or condition by further processing or manufacturing in the United States, U.S. FTZs, Puerto Rico, or the U.S. Virgin Islands.
Formula refers to records that identify the quantity of each element, material, chemical, mixture, or other substance incorporated into a manufactured article (and includes those used in the manufacturing or production process). This includes records kept in the normal course of business.
FPPI (Foreign Principal Party in Interest)
The party abroad who purchases the goods for export or to whom final delivery or end-use of the goods will be made. This party may be the Ultimate Consignee.
A term for cargo or the cost of shipping.
A carrier that collects small shipments from shippers, consolidates the small shipments and uses a basic mode to transport these consolidated shipments to a destination where the freight forwarder delivers the shipment to the consignee. Also defined as an independent business which handles export shipments for compensation.
FTZ (Foreign Trade Zone)
A part of the secured territory of a State where any goods introduced are generally regarded, in so far as Import Duties and taxes are concerned, as being outside the Customs Territory, and are not subjected to the usual Customs Control
Fungible merchandise or articles
Fungible merchandise or articles means merchandise or articles which for commercial purposes are identical and interchangeable in all situations.
General manufacturing drawback ruling
A general manufacturing drawback ruling means a description of a manufacturing or production operation for drawback and the regulatory requirements and interpretations applicable to that operation (see § 190.7).
GSP (Generalized System of Preferences)
The Generalized System of Preferences Program (GSP Program) is set out in title IV of the Trade Act of 1974 (19 U.S.C. 2461 et seq.). It authorizes the President, subject to certain conditions and limitations, to provide duty-free treatment for eligible articles imported from beneficiary developing countries. Before designating an article as eligible for duty-free treatment, the President must obtain the advice of the Commission on the probable economic effect of such designation (19 U.S.C. 2463(a)(1)(A), 2463(e)). Similarly, the President, before waiving the competitive need limitation in the statute, must obtain the Commission’s advice on whether any U.S. industry would be adversely affected (19 U.S.C. 2463(d)) by such a waiver.
HMF (Harbor Maintenance Fee)
Port use fee imposed at select channels or harbors, which are not considered inland waterways, where commercial cargo is loaded on or unloaded from a commercial vessel. HMF is enforced if the loading or unloading occurs at a port listed in §24.24(b)(1). Additionally, exemptions from HMF can be found in §24.24(c).
House Bill Number
An alphanumeric identifier that references an individual cargo shipment consolidated under a master bill of lading.
HS (Harmonized System)
The Harmonized System (HS) is an international classification system administered by the World Customs Organization. The 2-, 4-, and 6-digit HS headings and subheadings are the basis for the 10-digit statistical classification systems used in the United States. The HS is revised approximately every five years. For more information, see The World Customs Organization.
In the United States, the import classification system is called the “Harmonized Tariff Schedule of the United States Annotated (HTSA)” while the export system is called the “Schedule B”.
HTSUS (Harmonized Tariff Schedule of the United States Annotated)
The Harmonized Tariff Schedule of the United States (HTSUS) sets out the tariff rates and statistical categories for all merchandise imported into the United States. The HTS is based on the international Harmonized System, which is the global system of nomenclature applied to most world trade in goods. The Commission publishes and maintains the HTS in its various forms, and periodically makes recommendations to the President regarding modifications needed to keep the HTS consistent with international nomenclature. U.S. Customs and Border Protection administers the HTS at U.S. ports of entry and also provides advice and rulings on matters relating to the classification of imports.
HTSUS Number or Tariff Number
An 8- or 10-position alphanumeric code assigned to various commodities listed in the Harmonized Tariff Schedule of the United States Annotated.
Importer of Record
The party who makes (or on whose behalf an agent or broker makes) an import declaration, and who is liable for the payment of liable duties on the imported goods; also known as consignee in the shipping documents and/or as the buyer in the exporter’s invoice
Imports for Consumption
Measures the total of merchandise that has physically cleared through Customs either entering consumption channels immediately or entering after withdrawal for consumption from bonded warehouses or Foreign Trade Zones under CBP custody. Many countries use the term “special imports” to designate statistics compiled on this basis.
The act of transporting a cargo shipment from a port of unlading to another port for entry or disposition under bond.
Informal entries are filed for personal shipments of any value, for certain commercial shipments valued at $1250 or less and for certain textile shipments valued at $250 or less. Informal entries can be filed on the Entry Summary, CBPF-7501, and are identified by the numeric entry type code 11 in block 2. They can also be filed on an Informal Entry, CBPF-5119A.
Informal Merchandise Fee
An assessment for Informal entry summaries. The class code is 311.
The cost to ship goods between points inland and the seaport, airport, or land border port of exportation, other than baggage, express mail, or regular mail.
The person or entity in the foreign country who acts as an agent for the principal party in interest with the purpose of effecting delivery of items to the ultimate consignee. The intermediate consignee may be a bank, forwarding agent, or other person who acts as an agent for a principal party in interest.
Intermediate party means any party in the chain of commerce leading to the exporter (or destroyer) from the importer and who has acquired, purchased, or possessed the imported or substituted merchandise (or any intermediate or finished article, in the case of manufacturing drawback) as allowed under the applicable regulations for the type of drawback claimed, which authorize the transfer of the imported or other drawback eligible merchandise by that intermediate party to another party.
The person or entity in the foreign country who acts as an agent for the principal party in interest with the purpose of effecting delivery of items to the ultimate consignee. The intermediate consignee may be a bank, forwarding agent, or other person who acts as an agent for a principal party in interest.
Waters located outside the U.S. territorial sea, which extends 12 nautical miles measured from the baselines of the United States, and outside the territory of any foreign country, including the territorial waters thereof. Note that vessels, platforms, buoys, undersea systems, and other similar structures that are located in international waters, but are attached permanently or temporarily to a country’s continental shelf, are considered to be within the territory of that country.
Records or documents from a U.S. firm to its subsidiary or affiliate, whether in the United States or overseas.
Goods shipped through the United States, Puerto Rico, or the U.S. Virgin Islands from one foreign country or area to another foreign country or area without entering the consumption channels of the United States.
IRS Tax (Internal Revenue Service tax)
IRS tax is paid in addition to duty on shipments of alcohol and tobacco.
ISF (Importer Security Filing)
Electronic filing elements required for cargo arriving by vessel, with the exception of any bulk cargo, including (1) Seller, buyer, importer of record number / foreign trade zone applicant identification number, and consignee number(s); (2) Manufacturer or supplier, ship to party, country of origin, and commodity HTSUS number; (3) Container stuffing location and consolidator; (4) data elements required for FROB; and (5) data elements required for shipments intended to be transported in bond as an immediate exportation or transportation and exportation. All data elements are required no later than 24 hours before the cargo is laden aboard the vessel at the foreign port except for Container stuffing location and consolidator information which are required no later than 24 hours prior to arrival in the U.S.
ISO Code (International Organization for Standardization Code)
A 2-position alphabetic International Organization for Standardization (ISO) code for countries. For example, the ISO code for Mexico is MX, while the code for Spain is ES. A complete listing is included in Schedule C of the Harmonized Tariff Schedule (HTS).
IT (Immediate Transportation)
In-bond movement transporting a cargo shipment from the port of unlading to the in-land port of destination under bond for entry or disposition.
ITAR (International Traffic in Arms Regulations)
Regulations administered by the Directorate of Defense Trade Controls within the U.S. State Department that provide for the control of the export and temporary import of defense articles and defense services. These regulations are located in 22 CFR 120-130.
ITN (Internal Transaction Number)
The AES generated number assigned to a shipment confirming that an EEI transaction was accepted and is on file in the AES.
KPC (Kimberley Process Certificate)
A forgery-resistant document used to certify the origin of rough diamonds from sources which are free of conflict.
The date an entry has been liquidated by CBP.
Low to High Drawback Accounting Method
In the case of the low-to-high accounting method, three alternatives are provided. Under the ordinary low-to-high method, withdrawals from the inventory are from the merchandise or articles in the inventory at the time of withdrawal with the least drawback amount per unit, including merchandise or articles with no drawback attributable to them. Under the low-to-high method with established average inventory turn-over period, withdrawals from the inventory are from the merchandise or articles received into the inventory during the established average inventory turn-over period which have not already been identified. Under the low-to-high blanket method, withdrawals from the inventory are from the merchandise or articles received into the inventory during the period preceding the withdrawal equal to the statutory period for export for the kind of drawback involved which have not already been identified. All receipts, whether imported or not, and all withdrawals, whether or not for export, from the inventory must be accounted for in the accounting record in the case of all methods, except for the low-to-high method with established average inventory turnover period and the low-to-high blanket method. In the case of those alternatives of the low-to-high method, domestic withdrawals (not for export) from the inventory need not be accounted for.
Manufacture or production
Manufacture or production means a process, including, but not limited to, an assembly, by which merchandise is either 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 is not made into a new and different article.
A collection of documents, including forms, such as the cargo declaration and annotated bills of lading, that lists and describes the cargo contents of a carrier, container, or warehouse.
Method of transportation (aka Mode of Transportation or MOT)
The method by which goods are exported from the United States by way of seaports, airports, or land border crossing points. Methods of transportation include vessel, air, truck, rail, mail or other. Method of transportation is synonymous with mode of transportation.
MID (Manufacturer identification code)
Manufacturer identification code constructed using specific segments of the manufacturer’s or shipper’s, name and address. Refer to CBP Directive 3500-13 dated November 24, 1986, for instructions on determining the manufacturer ID.
A short and informal title used to refer to the CBP modernization provisions contained in Title VI of the North American Free Trade Agreement Implementation Act (Public Law 103-182). The primary purpose of Title VI is to streamline and automated the commercial operations of the CBP. The Title is also intended to improve compliance with CBP laws and provide safeguards, uniformity, and due process rights for importers.
MPF (Merchandise Processing Fee)
Merchandise that is entered or released is subject to an ad valorem fee based on the net entered value of the merchandise for which CBP has imposed a minimum of $25.67 and maximum of $497.99 for formal import entries. MPF may be waived for certain products and countries of origin.
Multiple products mean two or more products produced concurrently by a manufacture or production operation or operations.
An acronym, which means “Not Elsewhere Specified Or Included”.
An acronym, which means “Not Specifically Provided For”.
NAFTA (North American Free Trade Agreement)
The formal agreement, or treaty, among Canada, Mexico, and the United States to promote trade amongst the three countries. It includes measures for the elimination of tariffs and nontariff barriers to trade, as well as numerous specific provisions concerning the conduct of trade and investment.
North American Industry Classification System (NAICS)
Replaced the Standard Industrial Classification (SIC) system in 1997 as the industry classification system used by the statistical agencies of the United States. Under NAICS, economic units that use like processes to produce goods or services are grouped together, creating a “production-oriented” system. NAICS codes are assigned by the Economic Classification Policy Committee at the U.S. Census Bureau. For more information, see the NAICS website.
U.S. international trade data are collected using the Harmonized Tariff Schedule (imports) and Schedule B (exports) which are based on the commodity type while NAICS are based on supply or industry type. Users should be aware of these differences when comparing NAICS Trade data with other NAICS datasets.
OFAC (Office of Foreign Assets Control)
An agency within the U.S. Department of the Treasury that administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. The OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under U.S. jurisdiction.
Per unit averaging
Per unit averaging means the equal apportionment of the amount of duties, taxes, and fees eligible for drawback for all units covered by a single line item on an entry summary to each unit of merchandise. This method of refund calculation is required for certain substitution drawback claims (see § 190.51(b)(ii)), which may also be subject to additional limitations under the “lesser of” rules, if applicable (see § 190.22(a)(1)(ii) and 190.32(b)).
A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
Port of Entry
The port where the entry is filed.
Port of Unlading
The U.S. port of call in which cargo shipments are discharged.
Possession, for purposes of substitution unused merchandise drawback (19 U.S.C. 1313(j)(2)), means 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.
PPI (Principal parties in interest)
Those persons in a transaction that receive the primary benefit, monetary or otherwise, from the transaction. Generally, the principals in a transaction are the seller and the buyer. In most cases, the forwarding or other agent is not a principal party in interest.
Pro Forma Invoice
A provisional invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the supplier’s commitment to supply the kinds and quantities of goods to be sent, their value, and specifications (weight, size, etc.)
A temporary entry which is used to facilitate the release of goods, it is to be followed by a certified or a proper entry
Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. Quotas are established by legislation, Presidential Proclamations or Executive Orders. Quotas are announced in specific legislation or may be provided for in the Harmonized Tariff Schedule of the United States. (Source: U.S. Customs and Border Protection).
Under a quota, only a certain amount of the designated merchandise can be entered into the commerce of the United States during a specific time period. Under an absolute quota, once the specified amount of merchandise has been entered, no more can be entered until the next opening. Under a tariff-rate quota, a certain amount may be entered at a reduced rate of duty. Once that amount has been entered, a higher rate of duty is charged.
A collection of ACE CATAIR data elements that make up the full record.
Records include, but are not limited to, written or electronic business records, statements, declarations, documents and electronically generated or machine readable data which pertain to a drawback claim or to the information contained in the records required by Chapter 4 of Title 19, United States Code, in connection with the filing of a drawback claim and which may include records normally kept in the ordinary course of business (see 19 U.S.C. 1508).
Refund of Duty
Amounts found to be overpaid as duties that may be refunded by Customs to the relevant party within one year on application made by the importer, done on a “G Form”
Related party transaction
A transaction involving trade between a USPPI and an ultimate consignee where either party owns directly or indirectly 10 percent or more of the other party.
Relative value means, except for purposes of § 190.51(b), 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 the market value, or other value approved by CBP, 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 other identifiable costs, which accrue after the product itself is processed. Drawback must be apportioned to each such product based on its relative value at the time of separation.
RLF (Remote Location Filing)
A program for electronic entry filers which allows the transmission of entry/ entry summary data from one location for cargo arriving at a second location in which the filer is not located (if an importer) or is not licensed (if a broker).
A schedule means a document filed by a drawback claimant, under section 1313(a) or (b), as amended (19 U.S.C. 1313(a) or (b)), showing the quantity of imported or substituted merchandise used in or appearing in each article exported or destroyed that justifies a claim for drawback.
Schedule B means the Department of Commerce Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. These 10-digit commodity classification numbers are administered by the Census Bureau and cover everything from live animals and food products to computers and airplanes. It should also be noted that all import and export codes used by the United States are based on the Harmonized Tariff System.
The Classification of Country and Territory Designations. The Schedule C provides a list of country of origin codes. The country of origin is reported in terms of the International Standards Organization codes.
The Classification of CBP districts and ports. The Schedule D provides a list of CBP districts and ports and the corresponding numeric codes used in compiling U.S. foreign trade statistics.
The Classification of Foreign Ports by Geographic Trade Area and Country. The Schedule K lists the major seaports of the world that directly handle waterborne shipments in the foreign trade of the United States, and includes numeric codes to identify these ports. This schedule is maintained by the U.S. Army Corps of Engineers.
All goods being sent from one USPPI to one consignee located in a single country of destination on a single conveyance and on the same day. Except as noted in §30.2(a)(1)(iv), the EEI shall be filed when the value of the goods is over $2,500 per Schedule B or HTSUSA commodity classification code.
Documents that include but are not limited to commercial invoices, export shipping instructions, packing lists, bill of ladings and air waybills.
The total weight of a shipment in kilograms including goods and packaging.
SITC (Standard International Trade Classification)
Commodity classification system defined by the United Nations.
Sought chemical element
A sought chemical element, under section 313(b), means an element listed in the Periodic Table of Elements that is imported into the United States or a chemical compound (a distinct substance formed by a chemical union of two or more elements in definite proportion by weight) consisting of those elements, either separately in elemental form or contained in source material.
Duty assessed on an article of a given kind at a flat rate per unit of quantity (as a ton, bushel, or yard) without individual appraisal
Specific manufacturing drawback ruling
A specific manufacturing drawback ruling means a letter of approval (or its electronic equivalent) issued by CBP Headquarters in response to an application filed by a manufacturer or producer for a ruling on a specific manufacturing or production operation for drawback, as described in the format in Appendix B of this part.
Specific manufacturing drawback rulings are subject to the provisions in part 177 of this chapter.
SPI (Special Program Indicator)
Abbreviation which identifies an adjustment in applicable duty for a given entry line item and HTS number due to a special trade provision.
A shipment covered by a single EEI record booked for export on one conveyance, that is divided by the exporting carrier prior to export where the cargo is sent on two or more of the same conveyances of the same carrier leaving from the same port of export within 24 hours by vessel or 7 days by air, truck or rail.
Substituted merchandise or articles
Substituted merchandise or articles means merchandise or articles that may be substituted as follows:
(1) For manufacturing drawback pursuant to section 1313(b), substituted merchandise must be classifiable under the same 8-digit HTSUS subheading number as the designated imported merchandise;
(2) For rejected merchandise drawback pursuant to section 1313(c)(2), substituted merchandise must be classifiable under the same 8-digit HTSUS subheading number and have the same specific product identifier (such as part number, SKU, or product code) as the designated imported merchandise;
(3) For unused merchandise drawback pursuant to section 1313(j)(2), substituted merchandise must be classifiable under the same 8-digit HTSUS subheading number as the designated imported merchandise except for wine which may also qualify pursuant to § 190.32(d), but when the 8-digit HTSUS subheading number under which the imported merchandise is classified begins with the term “other,” then the other merchandise may be substituted for imported merchandise for drawback purposes if the other merchandise and such imported merchandise are classifiable under the same 10-digit HTSUS statistical reporting number and the article description for that 10-digit HTSUS statistical reporting number does not begin with the term “other”; but when the first 8 digits of the 10-digit Schedule B number applicable to the exported merchandise are the same as the first 8 digits of the HTSUS subheading number under which the imported merchandise is classified, the merchandise may be substituted (without regard to whether the Schedule B number corresponds to more than one 8- digit HTSUS subheading number); and
(4) For substitution drawback of finished petroleum derivatives pursuant to section 1313(p), a substituted article must be of the same kind and quality as the qualified article for which it is substituted, that is, the articles must be commercially interchangeable or described in the same 8-digit HTSUS subheading number (see § 190.172(b)).
A special purpose foreign trade zone established as part of a foreign trade zone project with a limited purpose that cannot be accommodated within an existing zone. Subzones are often established to serve the needs of a specific company and may be located within an existing facility of the company.
Data elements provided by ACS from other records, files or the actual operating system.
Third Party Transactions
Drawback eligible transactions that involve multiple companies importing and exporting the drawback merchandise.
Any contractual arrangement between states concerning their trade relations, they may be bilateral or multilateral; they may be reciprocal or non-reciprocal.
Transaction Control Header Record
Commonly referred to as the A record, this header record identifies the user and signals the beginning of a transaction file.
Transaction Control Trailer Record
Commonly referred to as the Z record, this trailer record is paired with the transaction control header record and signals the end of the transaction file.
To transfer goods from one transportation line to another or to transfer goods from one vessel to another.
The transfer of merchandise from the country or countries of origin through an intermediary country or countries to the country of ultimate destination.
TRN (Transportation Reference Number)
A reservation number assigned by the carrier to hold space on the carrier for cargo being shipped. It is the booking number for vessel shipments, the master air waybill number for air shipments, the bill of lading number for rail shipments, and the freight or pro bill for truck shipments.
The person, party, or designee that is located abroad and actually receives the export shipment. This party may be the end user or the FPPI.
The physical removal of cargo from an aircraft, truck, rail, or vessel.
U.S. Postal Service customs declaration form
The shipping document, or its electronic equivalent, that a mailer prepares to declare the contents for the purposes of domestic and foreign customs authorizations and other relevant government agencies.
USPPI (U.S. principal party in interest)
The person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Generally, that person or entity is the U.S. seller, manufacturer, or order party, or the foreign entity while in the United States when purchasing or obtaining the goods for export.
The procedure applied to determine the customs value of imported goods. If the rate of duty is ad valorem, the customs value is essential to determine the duty to be paid on an imported good.
Vehicle Identification Number (VIN)
A number issued by the manufacturer and used for the identification of a self-propelled vehicle.
Verification means the examination of any and all records, maintained by the claimant, or any party involved in the drawback process, which are required by the appropriate CBP officer to render a meaningful recommendation concerning the drawback claimant’s conformity to the law and regulations and the determination of supportability, correctness, and validity of the specific claim or groups of claims being verified.
An agent who sells directly for a supplier and maintains an inventory of the supplier’s products.
Wine, for purposes of substitution unused merchandise drawback under 19 U.S.C. 1313(j)(2) and pursuant to the alternative standard for substitution (see 19 CFR 190.32(d)), refers to table wine. Consistent with Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations, table wine is a “Class 1 grape wine” that satisfies the requirements of 27 CFR 4.21(a)(1) and having an alcoholic content not in excess of 14 percent by volume pursuant to 27 CFR 4.21(a)(2)).