Question 30
Domain 4: Duty Calculations, Fees, and Trade ProgramsWhich of the following examples of substituted merchandise is eligible for unused merchandise drawback pursuant to 19 USC 1313(j)(2)?
Correct answer: A
Explanation
Unused merchandise drawback under 19 USC 1313(j)(2) requires substituted merchandise to be “commercially interchangeable” with the imported merchandise. Here both teas are “not fermented” and classified under the same subheading, 0902.10.9015, HTSUS, showing they are commercially interchangeable for drawback purposes.
Why each option is right or wrong
A. Amaretto 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.
19 U.S.C. 1313(j)(2) allows unused merchandise drawback only when the imported and substituted articles are commercially interchangeable and the substitution occurs before exportation or destruction, with the drawback claim filed within 5 years of importation. Matching the same HTSUS subheading, 0902.10.9015, for both not-fermented teas is strong objective evidence of commercial interchangeability under CBP practice, so this pair satisfies the statutory requirement.
B. Raw, shelled peanuts, classified under subheading 1202.41.8040, HTSUS; substituted for imported raw, shelled peanuts, classified under subheading 1202.41.8040, HTSUS.
Unused drawback requires substituted merchandise to be commercially interchangeable, not merely identical in description.
C. Chocolate 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.
Commercial interchangeability depends on matching merchandise characteristics; different 10-digit subheadings signal a mismatch.
D. Wine 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. CBLE P. 27
Substituted merchandise must be commercially interchangeable; differing subheadings indicate the goods are not the same for drawback.