CSMS# 12-000546 - Drawback Claims Filed on Goods Subject to the U.S. – Chile Free Trade Agreement

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12/10/2012 09:58 AM EST

ACE Portal Accounts





As a result of the U.S. – Chile Free Trade Agreement, drawback claims made on goods exported to Chile after January 1, 2012 are subject to special treatment as described in 19 U.S.C. 1313(j)(4)(B) and 1313(n). U.S. duty drawback on exportations to Chile will be gradually phased out starting January 1, 2012 for the following types of drawback:



Manufacturing – 1313(a) and 1313(b)



Substitution Unused Merchandise– 1313(j)(2)



Substitution of Finished Petroleum Derivatives – 1313(p)



Packaging Material – 1313(q)





The phase-out in duty drawback is as follows:



Exportations from Jan 1, 2012 - Dec. 31, 2012 are reduced to 75% of eligible drawback



Exportations from Jan 1, 2013 - Dec. 31, 2013 are reduced to 50% of eligible drawback



Exportations from Jan 1, 2014 - Dec. 31, 2014 are reduced to 25% of eligible drawback



Exportations on or after Jan 1, 2015 are reduced to zero drawback



Please note that unused merchandise direct identification drawback 1313(j)(1) remains eligible for drawback and is not subject to the free trade agreement reductions.





Filing Instructions



1. Drawback claims involving goods exported to Chile must be submitted separately from all other types of drawback claims and should be marked “Chile FTA” in conspicuous letters on the top of the first page or the front of the folder.



2. ABI claims should be transmitted at the calculated amount (original duty amount prior to the reduction).



3. The total drawback claimed on the CBP 7551 should be the reduced duty/fee amount.



4. The calculation worksheet must include a column representing the calculated duty/fees (amount before the duty reduction) and a column with the actual duty/fees claimed (amount after the duty/fee reduction):



99% of duty on the ABI transmission



75% of duty and fees on the 7551 (or applicable duty reduction based on year)



75% (for 2012 claims) and 99% of duty and fees on the calculation worksheet and coding sheet



If you have questions regarding this information, please contact Laurie Dempsey, Branch Chief, Entry, Summary, and Drawback at laurie.dempsey@dhs.gov.