19 CFR Part 190 — Modernized Drawback

April 2021, Q35. After filing a drawback notice of intent to export rejected merchandise, CBP will notify an importer or broker of its decision to examine the merchandise. How will the importer or broker arrange for that exam?

1. AContact the inspection personnel in the port at which the CBP Form 7553 was filed.
2. BContact the entry specialist in the port at which the CBP Form 7501 was filed.
3. CContact the broker management office in the port at which CBP Form 3461 was filed.
4. DContact the import specialist in the port at which the CBP FORM 3495 was filed.
5. EContact the inspection personnel in the port at which CBP Form 6043 was filed.

April 2021, Q36. What percentage of duties paid with respect to the imported merchandise may a claimant receive on filing a drawback claim?

1. A1%
2. B10%
3. C35%
4. D50%
5. E99%

April 2021, Q37. The drawback entry is to be filed through a CBP-authorized electronic system and must include all of the following EXCEPT:

1. AClaimant identification number
2. BPort code for the drawback of fice where the claim is being filed
3. CDrawback entry number and provision(s) under which drawback is claimed
4. DThe 8-digit HTSUS classification, of each item being exported
5. EAmount of refund claimed for each of relevant duties, taxes, and fees

April 2021, Q38. Evidence of any transfers of merchandise must be evidenced by records as defined in ________ _______.

1. A19 CFR § 190.2
2. B19 CFR § 190.4
3. C19 CFR § 190.10
4. D19 CFR § 190.24
5. E19 CFR § 190.73

April 2022, Q32. A Notice of Intent to Export, Destroy or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be exported, shall be filed by the claimant with the CBP port of intended examination at least _____ working days prior to the intended exportation for claims filed under 19 USC 1313(j).

1. A1
2. B2
3. C5
4. D7
5. E15

April 2022, Q33. For imported merchandise designated on a TFTEA drawback claim, the _____ is NOT required to be provided on the drawback entry.

1. A10 Digit HTSUS Classification
2. BCountry of Origin
3. CDescription
4. DImport Entry Number
5. EUnique Import Tracing Number (ITIN)

April 2022, Q34. What type of duties, taxes and fees are NOT allowed to be claimed for drawback?

1. AInternal revenue taxes which attach upon importation
2. BMerchandise processing fees (MPF)
3. CAntidumping and countervailing duties (AD/CVD)
4. DHarbor maintenance taxes
5. EOrdinary customs duties

April 2023, Q57. Within how many working days prior to the date of intended destruction must a Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be destroyed be filed by the claimant with the CBP port where the destruction is to take place?

1. AOne (1)
2. BTwo (2)
3. CSeven (7)
4. DTen (10)
5. EFourteen (14)

April 2023, Q58. Which designated merchandise qualifies for Direct Identification Unused Merchandise Drawback under 19 USC 1313(j)(1)?

1. AA yacht imported and used to participate in a race and then exported immediately after the race.
2. BImported socks which are repackaged and then exported.
3. CImported fabric which is cut and sewn into shirts and then exported.
4. DImported bike wheels which are substituted and commingled with domestically sourced bike wheels and then exported.
5. EImported duty paid petroleum derivatives under Harmonized Tariff Schedule of the United States (HTSUSA) Subheading Chapter 3911.90.91 which are exported within 180 calendar days.

April 2023, Q60. Which of the following answers is NOT a condition or criteria for identification of merchandise or articles by accounting method for drawback purposes?

1. AThe lots of merchandise or articles to be so identified must be fungible.
2. BThe person using the identification method must be able to establish that inventory records (for example, material control records), prepared and used in the ordinary course of business, account for the lots of merchandise or articles to be identified as being received into and withdrawn from the same inventory.
3. CUnless provided in the section of the U.S. Code of Federal Regulations related to identification of merchandise or articles by accounting method or otherwise specifically approved by Customs (by a binding ruling under Part 177 of Chapter 1 of Title 19 of the U.S. Code of Federal Regulations), all receipts (or inputs) into and all withdrawals from inventory must be recorded in the accounting record.
4. DThe records which support any identification method under this section are subject to verification by Customs.
5. EAny accounting method which is used by a person for drawback purposes under this section must be used without variation with other methods for a period of at least two (2) years, unless approval is given by Customs for a shorter period.

April 2023, Q61. Calculate the total amount to be claimed for drawback for line item 2 using the following facts. Line item 1 is for 5,000 articles valued at $10.00 each totaling $50,000.00. The duty rate for line item 1 is 7%. Line item 2 is for 6,000 articles valued at $15.00 each totaling $90,000.00. The duty rate for line item 2 is 5%. The only fee is the merchandise processing fee that was paid at the regulatory rate of 0.3464% and is between the minimum and maximum. Direct identification drawback is claimed.

1. A$4,455.00
2. B$4,763.64
3. C$4,811.76
4. D$7,920.00
5. E$8,484.96

April 2025, Q21. Which of the following is NOT identified among the specified criteria that CBP will consider when reviewing an applicant’s record with CBP for purposes of an application for accelerated payment of drawback?

1. AThe number of trade compliance employees hired by the drawback claimant in the last 12 months.
2. BThe presence or absence of unresolved CBP charges (duties, taxes, fees, or other debts owed CBP).
3. CThe accuracy of the claimant’s past drawback claims.
4. DWhether accelerated payment of the drawback or waiver of prior notice of intent to export was previously revoked or suspended.

April 2025, Q23. WeHeartGoats, Inc. (WeHeartGoats), a goat soap manufacturer and exporter, imports burlap, sewing thread, and string in bulk from which WeHeartGoats makes burlap drawstring bags that hold individual bars of soap. WeHeartGoats sews its own drawstring bags from the imported bulk burlap and string. The soap is made using goat milk and other ingredients. None of the ingredients to create the soap are imported. Because the burlap bags breathe, they are better packaging than paper or plastic for the soap bars. WeHeartGoats intends to claim drawback on the burlap and string that it manufactures into the drawstring bags upon the exportation of the soap-filled bags. Which the following statements is TRUE?

1. AThe WeHeartGoats’ drawstring bags, although wholly manufactured with imported materials, are ineligible for drawback because the bags are packaging for U.S. origin soap, and packaging that contains articles or merchandise not eligible for drawback is also not eligible for drawback.
2. BIf WeHeartGoats receives acknowledgement of its letter of notification of intent to operate under a general manufacturing ruling from the drawback officer where the drawback entries are to be filed, the letter of notification will remain in effect for five years from the date of the first drawback claim filed in accordance with the letter of notification.
3. CIf WeHeartGoats determines that a general manufacturing drawback ruling can be followed without variation, concurrent with or prior to filing a drawback claim, WeHeartGoats will file a letter of notification of intent to operate under a general manufacturing drawback ruling with the drawback officer where the drawback entries are to be filed.
4. DIf, after receiving acknowledgement of its letter of notification of intent to operate under a general manufacturing drawback ruling from the drawback officer where the drawback entries are to be filed, WeHeartGoats decides to change its name to WeHeartGoats.US, Inc., the company must must file a supplemental application. The supplemental application would be filed with CBP Headquarters, Office of Trade, Regulations and Rulings, Entry Process and Duty Refunds Branch (CBP Headquarters), for authorization to continue operating under its existing ruling.

April 2025, Q24. Evidence of exportation or destruction is required for a complete drawback claim. Which of the following supporting documentation will be a sufficient official postal record to prove exportation of merchandise on which drawback is to be claimed, if exported using the U.S. Postal Service (USPS) First-Class Package International Service?

1. AA completed commercial invoice describing the mail shipment from the U.S. exporter to the foreign importer showing the date the package was shipped from the U.S. post office.
2. BAn email from the foreign importer to the U.S. exporter acknowledging receipt of the package and containing a picture of the package upon delivery to the foreign importer.
3. CAn affidavit signed by the U.S. exporter’s employee declaring that the employee took the package to the U.S. post office and shipped it with proper postage on the date of export.
4. DAn original, complete USPS Customs Declaration and Dispatch Note describing the mail shipment, including a USPS barcode label affixed showing the shipment number, and a payment receipt attached.

April 2025, Q25. AZ-DZ Audio, Inc. (AZ-DZ) manufactures stage monitor loudspeakers (monitors) in Arizona from a mix of foreign and domestic components. Three years ago, AZ-DZ made a special export edition of its “Goes to Eleven” monitor for customers outside the U.S. That same year, AZ-DZ imported special gold cables from South Korea to be used in the Goes to Eleven monitors. AZ-DZ did not use all of the imported cables to make monitors and exported its excess stock back to the supplier last year. AZ-DZ now wants to claim unused merchandise drawback under 19 USC 1313(j) for duties paid on the unused cables. AZ-DZ never provided prior notice of intent to export or destroy merchandise to CBP as required by 19 CFR 190.35. In order to claim unused merchandise drawback despite its failure to comply with 19 CFR 190.35, AZ-DZ files an application with CBP’s Detroit Drawback office pursuant to the CBP regulations. Which of the following information is AZ-DZ NOT required to provide in their application?

1. AThe port(s) of exportation of the cables
2. BThe relationship between the parties involved in the import and export transactions
3. CThe export period covered by the application
4. DThe country or countries to which the unused cables were exported

April 2026, Q45. A drawback claimant must furnish a properly executed drawback bond if approved for _____ privilege.

1. AWaiver of prior notice of intent to export
2. BAccelerated payment
3. CExporters summary procedure
4. DOne time waiver of prior notice for past exports

April 2026, Q46. What type of rejected merchandise is eligible for substitution drawback under 19 CFR 190.45?

1. AMerchandise that did not conform to sample or specifications.
2. BMerchandise that was shipped without the consent of the consignee.
3. CMerchandise that was determined to be defective as of the time of importation.
4. DMerchandise that was ultimately sold at retail and returned for any reason.

May 2024, Q22. Which of the following is considered foreign territory for drawback purposes?

1. AAmerican Samoa
2. BGuantanamo Bay Naval Station
3. CPuerto Rico
4. DU.S. Virgin Islands

May 2024, Q23. What is the maximum civil administrative penalty for any person who seeks, induces, or affects, or attempts to seek, induce, or affect, the payment of drawback by fraud?

1. AOne (1) times the total actual or potential loss of revenue.
2. BThree (3) times the total actual or potential loss of revenue.
3. CFive (5) times the total actual or potential loss of revenue.
4. DTwenty (20) percent of actual or potential loss of revenue.

May 2024, Q24. CBP has determined that a drawback claim is complete, but additional information is still required and has notified the drawback claimant (“claimant”). Five days after the notification date, the claimant filed, in writing, an extension for time to respond. Therefore, within how many days of the original date of notification from CBP to the claimant must the claimant furnish the CBP-requested information?

1. AFive (5)
2. BTwenty-five (25)
3. CThirty (30)
4. DSixty (60)

May 2024, Q25. Drawback is allowable pursuant to 19 USC 1313 on duties, taxes, and fees paid on imported merchandise which were imposed under Federal law upon entry or importation. Duties include "ordinary customs duties." In the modernized drawback regulations, which ONE of the following is NOT included in ordinary customs duties?

1. AMarking duties assessed under section 304(c), Tariff Act of 1930, as amended.
2. BA tender of duties in connection with notices of prior disclosure under 19 USC 1592(c)(4).
3. CDuties paid on an entry, or withdrawal from warehouse, for consumption, for which liquidation has become final.
4. DDuties restored under 19 USC 1592(d).

October 2020 (AM), Q62. The below information is required for each manufacturer or producer submitting a letter of notification of intent to operate under a general manufacturing drawback ruling. They must also provide the following specific detailed information EXCEPT:

1. AName and address of manufacturer or producer or IRS number
2. BThe names of persons who will sign drawback documents in the case of a business entity
3. CLocations of the factories that will operate under the letter of notification
4. DDescription of the manufacturing or production process
5. ESocial Security numbers of the manufacturer or producers

October 2020 (PM), Q61. A claimant may appeal a denial of a drawback privilege application in writing and such appeal must be filed with the CBP Drawback Center that issued the denial within ____ calendar days of the decision letter.

1. A30
2. B45
3. C60
4. D90
5. E120

October 2020 (PM), Q62. Drawback is NOT allowed on exports to United States Insular Possessions, EXCEPT under which of the below provisions:

1. ADirectly identifiable merchandise used in the manufacturing of an article under 19 U.S.C. § 1313(a); or flavoring extracts, medicinal or toilet preparations manufactured in the United States, pursuant to 19 U.S.C. § 1313(d), and exported to the U.S. Virgin Islands.
2. BSubstituted merchandise used in the manufacturing of an article under 19 U.S.C. § 1313(b); or substituted, unused merchandise, under 19 U.S.C. § 1313(j)(2), and exported to Guam.
3. CDirectly identifiable, unused merchandise, under 19 U.S.C. § 1313(j)(1); or fuel laden as supplies on a vessel, under 19 U.S.C. § 1309(b), and exported to American Samoa.
4. DMerchandise not conforming to sample or specification, under 19 U.S.C. § 1313(c)(1)(c)(i); or merchandise ultimately sold at retail and returned to the importer, under 19 U.S.C. § 1313(c)(1)(c)(ii), and exported to Wake Island.
5. EPackaging material claimed under 19 U.S.C. § 1313(q)(2); or meats cured with imported salts under 19 U.S.C. § 1313(f), and exported to Kingman Reef.

October 2020 (PM), Q63. Under which provision is drawback NOT provided for on imported packing material used to package or repackage merchandise and articles exported or destroyed:

1. A19 U.S.C. § 1313(j)(1) - Direct Identification Unused Merchandise Drawback
2. B19 U.S.C. § 1313(j)(2) - Substitution Unused Merchandise Drawback
3. C19 U.S.C. § 1313(a) - Direct Identification Manufacturing Drawback
4. D19 U.S.C. § 1313(d) - Internal Revenue Tax on Flavoring Extracts, and Medicinal or Toilet Preparations manufactured from Domestic Paid Alcohol Drawback
5. E19 U.S.C. § 1313(b) - Substitution Manufacturing Drawback

October 2020 (PM), Q64. Which of the following drawback time frames is CORRECT?

1. ADrawback is permissible on exported or destroyed merchandise, which was imported, sold at retail, and returned to the importer, within 3 years of the date of import.
2. BUnless a waiver is applicable, CBP Form 7553, Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback, must be filed with CBP at least 15 working days prior to the date of intended exportation.
3. CAt least 10 working days before the intended date of destruction of merchandise under CBP supervision, upon which drawback is intended to be claimed, a CBP Form 7553, Notice of Intent to Export, Destroy or Return Merchandise for Purposes of Drawback, must be filed.
4. DA party may challenge a denial of an application for certification, as a participant in the drawback compliance program, by filing a written appeal within 30 days of the issuance of the notice of denial.
5. EDrawback is allowed on imported merchandise if the merchandise is exported or destroyed within 3 years of the date of importation and was not used within the United States.

October 2021, Q28. All records which pertain to the filing of a drawback claim or to the information contained in the records in connection with the filing of a drawback claim must be retained for ____ after liquidation of such claims or longer period if required by law.

1. A180 calendar days
2. B5 years
3. C4 years
4. D3 years
5. E1 year

October 2021, Q29. A Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on CBP Form 7553 for merchandise that is going to be destroyed, shall be filed by the claimant with the CBP port where the destruction is to take place at least _______ working days prior to the date of intended destruction.

1. A1
2. B2
3. C7
4. D10
5. E14

October 2021, Q30. Each manufacturer or producer submitting a letter of notification of intent to operate under a general manufacturing drawback ruling must provide the following specific detailed information, EXCEPT:

1. ABasis of claim used for calculating drawback
2. BName and address of manufacturer or producer
3. CLocations of the factories which will operate under the letter of notification
4. DInternal Revenue Service Number (IRS)
5. EIssuance date of the general manufacturing drawback ruling

October 2022, Q51. What is the timeframe during which an unliquidated drawback claim filed on October 26, 2022, may be amended?

1. AUnliquidated drawback claims may be amended at any time prior to liquidation.
2. BUnliquidated drawback claims may be amended within 90 days of the date the claim was accepted by CBP.
3. CUnliquidated drawback claims may be amended within 180 days of the date the claim was filed with CBP.
4. DUnliquidated drawback claims may be amended within five (5) years after the date of importation of the claimed merchandise.
5. EUnliquidated drawback claims may be amended within three (3) years after the date of exportation or destruction of the claimed merchandise.

October 2022, Q52. The importer imported shirts into the United States on July 15, 2020, and paid the appropriate duties, taxes, and fees. The shirts were exported without the benefit of drawback on July 17, 2020, to Mexico to be warehoused until sold with the expectation that the shirts would be reimported duty-free under 9801.00.1098. The importer finds a foreign buyer for these shirts on September 20, 2021. The shirts were exported from Mexico on October 15, 2021. By when must the completed drawback claim for the shirts be filed?

1. AThree (3) years from July 17, 2020
2. BThree (3) years from October 15, 2021
3. CFive (5) years from July 15, 2020
4. DFive (5) years from September 30, 2021
5. EFive (5) years from October 15, 2021

October 2022, Q53. For which drawback claim types filed after February 24, 2016, is it permissible for the drawback claimant to be a successor of a predecessor that transferred its preexisting rights to merchandise and/or drawback product to the successor?

1. AForeign-built jet aircraft engine drawback and supplies for certain vessels and aircraft drawback.
2. BSubstitution manufacturing drawback and substitution unused merchandise drawback.
3. CNonconforming rejected merchandise drawback and unordered rejected drawback.
4. DDefective merchandise drawback and substitution manufacturing drawback.
5. EUnused merchandise drawback and rejected merchandise drawback.

October 2024, Q21. Of the parties listed below, which party is entitled to claim manufacturing drawback when the right to claim drawback has not been assigned by certification?

1. AThe producer
2. BThe importer
3. CThe exporter
4. DThe manufacturer

October 2024, Q22. How long must records supporting a claim under the modernized drawback regulations be reatined?

1. AFive years from date of importation.
2. BThree years from date of payment of the claim.
3. CThree years after liquidation of the claim.
4. DFive years after date of payment of the claim.

October 2024, Q24. Boots-4-U ordered 1,000 pairs of men's motorcycle boots predominantly of leather in three styles as follows. Boot Style Per-pair Cost Quantity Total Black upper and black sole $100.00 500 $50,000.00 Black upper and black sole with chains at ankle $125.00 350 $43,750.00 Brown upper and black sole $150.00 150 $22,500.00 Total $116,250.00 On April 23, 2024, Boots-4-U correctly filed a formal consumption entry with all the boots on one entry summary line. Boots-4-U utilized subheading 6403.91.6075, HTSUS, for all 1,000 pairs of boots. Boots-4-U’s merchandise was exempt from the merchandise processing fee pursuant to 19 CFR 24.23(c)(1)(iii), but did not meet the duty-free requirements. Therefore, duties were correctly calculated and paid, with a total duty cost of $9,881.25. No other fees were due. Boots-4-U then exported 100 pairs of the black upper and black sole boots and 100 pairs of the black upper and black sole with chains at the ankle boots. Boots-4-U filed the first drawback claim properly calculating drawback using the per unit averaging accounting method pursuant to 19 CFR 190.14(c)(4)(i). In a domestic transaction, Boots-4-U sold all 150 units of the brown upper and black sole boots to Discount Boot House (Discount) for $135.00 per pair and transferred drawback rights for that merchandise to Discount. After the sale, Discount timely exports all boots it bought from Boots-4-U and files a drawback claim as the transferee. Which statement below is accurate regarding the per unit drawback that Discount can claim on the brown upper and black sole boots?

1. ADiscount can claim the per unit drawback amount calculated using the per unit averaging method used by Boots-4-U in its drawback claim.
2. BDiscount can claim 99% of the duty apportioned to the per unit cost by Boots-4-U of $150.00.
3. CDiscount can claim 99% of the duty apportioned to the per unit cost paid to Boots-4-U of $135.00.
4. DDiscount can claim 99% of 15% of the total duty paid by Boots-4-U as Discount is exporting 15% of the total quantity of boots that were imported.

October 2024, Q25. Which of the following best describes a drawback claim, as authorized for payment by CBP?

1. AA drawback claim is the refund, in whole or in part, of the duties, taxes, and/or fees paid on imported merchandise.
2. BA drawback claim is the drawback entry and related documents required by regulation which together constitute the request for drawback payment.
3. CA drawback claim is when CBP transfers work between various drawback offices even though the drawback submission may have been to a particular office.
4. DA drawback claim is the document containing a description of, and other required information concerning, the exported or destroyed article upon which a drawback claim is based.

October 2024, Q45. Broker B's client wants to export 3,000 men's shirts upon which it paid duty, taxes, and fees at the time of importation by transferring the merchandise to a Foreign Trade Zone (FTZ). On proper application by Broker B, what zone status must the merchandise transferred to the FTZ have to be considered exported for purposes of drawback?

1. ANon-privileged Foreign Status
2. BPrivileged Foreign Status
3. CZone restricted Status
4. DDomestic Status

October 2025, Q63. Which of the following examples of substituted merchandise is eligible for unused merchandise drawback pursuant to 19 USC 1313(j)(2)?

1. AAmaretto black tea, not fermented, classified under subheading 0902.10.9015, HTSUS; substituted for imported Earl Grey tea, not fermented, classified under subheading 0902.10.9015, HTSUS.
2. BRaw, shelled peanuts, classified under subheading 1202.41.8040, HTSUS; substituted for imported raw, shelled peanuts, classified under subheading 1202.41.8040, HTSUS.
3. CChocolate and other food preparations containing cocoa classified under subheading 1806.20.2028, HTSUS; substituted for imported chocolate and other food preparations containing cocoa, classified under subheading 1806.20.2038, HTSUS.
4. DWine of fresh grapes, including fortified wine, classified under subheading 2204.21.8030, HTSUS; substituted for imported wine of fresh grapes, including fortified wine, classified under 2204.21.8060, HTSUS.