Background

U.S. Customs and Border Protection has issued a new simplified general manufacturing drawback ruling under 19 USC 1313(b) for component parts. This ruling is effective for drawback claims filed on or after April 22, 2020.

The general manufacturing drawback ruling under 19 USC 1313(b) for component parts published in 1981 (T.D. 81–300) contained a requirement that the imported component parts and designated component parts were only substitutable if they were of the same kind and quality and had the same component part numbers. Under the Trade Facilitation and Trade Enforcement Act of 2015, the pre-TFTEA same kind and quality substitution standard was changed to classification under the same eight-digit HTSUS subheading. While the requirement for substitution on the basis of the same part number was preserved, CBP states that some members of the trade community have asked it to consider removing this requirement in T.D. 81–300, claiming it is no longer necessary based on the new substitution standard.

In response, CBP has created a new simplified general manufacturing component parts ruling that allows for substitution under 19 USC 1313(b) solely under the same eight-digit HTSUS subheading. For this new simplified ruling CBP has not included the “Parallel Columns” section found in T.D. 81–300 and instead has provided a set of substitution stipulations.

Accordingly, manufacturers and producers may now file for a component parts ruling under either the original T.D. 81–300 or this new simplified ruling. Manufacturers and producers that are currently authorized under T.D. 81–300 and seek to operate under this new ruling must apply to do so pursuant to the procedures in 19 CFR 190.7(b).

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