Manufacturing Drawback | N.F. Stroth & Associates

Manufacturing Duty Drawback

Manufacturing Drawback is for products that have been exported after being altered. Exported components must be directly identified to the imported component.

Manufacturing drawback is provided for in subsection (a) and (b) of the drawback law (19 U.S.C. 1313(a) and (b)).

Subsection 1313(a) provides for what is called "direct identification" manufacturing in which substitution of the imported merchandise is not permitted.

Subsection 1313(b) provides for substitution manufacturing drawback, in which substitution for the imported merchandise is permitted, subject to certain conditions.

In substitution manufacturing drawback, any other merchandise, whether imported or domestic, of the same kind and quality as the imported merchandise, may be substituted for the imported merchandise. Drawback is granted on the export or destruction of articles made from the imported merchandise, the substituted merchandise, or any combination thereof. The manufacturer must use the imported and/or substituted merchandise in manufacture within 5 years of receipt. In both cases, the manufactured article may not be used in the U.S. after manufacture is complete.