Unused Direct Identification Drawback

Direct identification drawback is the simplest type of unused merchandise drawback claim under the U.S. Duty Drawback program.

Unused direct ID drawback

Unused direct identification drawback applies to goods that are:

• exported OR
• destroyed (under CBP supervision)

AND

• that are classified under the same 8-digit HTS code as the goods initially imported.

The statutory period for filing duty drawback claims is 5 years from when the goods were imported.

To be considered “unused,” the goods must not have been subjected to manufacturing or production processes.

Unused direct identification drawback is a provision under 19 U.S.C. 1313(j)(1) in the Code of Federal Regulations (CFR), which defines this type of claim in detail.

Example of unused direct ID drawback

A clothing importer pays $100,000 in duties, taxes, and fees on a shipment of men’s cotton t-shirts imported from China to the United States under HTS code 6109.10.0012.

If these goods or others under HTS code 6109.10.00 in the importer’s possession are exported or destroyed (under CBP supervision), without being subjected to manufacturing or production processes, and without being sold for consumption, the importer could be eligible for up to a 99% refund on eligible duties, taxes, and fees.

While the full 10-digit code is necessary for entry purposes, direct ID drawback is based on the 8-digit code which identifies the category (T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton) and duty rate (16.5% + additional 7.5% China tariff).

Filing a direct identification drawback claim

If you are interested in filing a drawback claim (or want to know if your company is eligible), start by talking with a drawback broker.

Shannon Alexander, CHB, CCS

502-380-8400 | salexander@cjinternational.com

Shannon is a licensed Customs Broker with over 3 decades of industry experience, and your point of contact for duty drawback questions! Get in touch with Shannon via phone, email, or by submitting a contact form below.

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