There are three forms of duty drawbacks consisting of manufacturing, unused merchandise, and rejected merchandise. Manufacturing Drawback Imported articles used in manufacturing or production that are later exported or destroyed under CBP supervision. Drawback rulings are required for eligibility. The forms of manufacturing drawbacks include:

• Direct Identification: a refund of duties paid on materials or components that were previously imported into the United States and used here in the manufacture or production of goods for export.
• Substitution Manufacturing Drawback: a drawback of duties is payable with respect to imported, duty-paid components or materials, even if goods are produced for export with other foreign or domestic components or materials of the “same kind and quality” (“SKAQ”).

Unused Merchandise Drawback A “same condition” drawback, is a refund of 99% of duties, fees, and taxes paid with respect to imported merchandise that is subsequently exported (or destroyed under Customs supervision) within three years after its date of importation, without having been changed in condition or used in the United States prior to such exportation or destruction. Rejected Merchandise Merchandise that is defective, does not meet specific standards or is shipped without consent that is exported back to the overseas manufacturer or destroyed.

CTPAT benefits include a reduced number of inspections and priority processing when CBP inspections do occur. Furthermore, CTPAT members are eligible to participate in CBP programs such as the Importer Self Assessment (“ISA”), Free and Secure Trade program (“FAST”), and access to CBP training seminars open only to certified members.

An FTZ is a designated geographical area within the United States but is not considered part of United States commerce. However, a Bonded warehouse is within United States Customs territory Therefore, a formal Customs entry must be filed for goods to enter the warehouse.

Advantages to an FTZ include:

• Goods do not go through an official Customs entry process when first stored in the warehouse. This allows for duty payment to be delayed, reduced or even eliminated in some cases.
• FTZ warehouses also don’t have regulations as strict as bonded warehouses. For example, goods imported into an FTZ can be stored, manipulated, or manufactured without being subject to import duties or taxes until they enter the commerce of the United States, but only a specific class of Bonded warehouses can do perform those operations.

But Customs bonded warehouses are also an attractive option.

Advantages to a Customs bonded warehouse include:

• No duty is collected until the product is withdrawn for consumption. This allows importers greater control over their finances.
• Goods can be stores for up to five years
• If an importer is unable to find a buyer in the U.S., the goods can be exported without paying duty.

Currently, ocean carriers, importers, consignees and shippers utilizing ocean transportation may submit an electronic vessel manifest confidentiality request through the following methods:

• Submit and manage an automated online application for electronic vessel manifest confidentiality
• Submit a paper request
• Submit an email request

Once received, CBP processes the confidentiality request according to the information provided. For confidentiality to be effective, the name provided must exactly match the importer/consignee name as it is entered electronically in the Automated Commercial Environment (ACE) by the trade or their carrier/filing party. It is the responsibility of the requesting entity to verify that they are providing an accurate request.