[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR191.11]

[Page 528]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 191--DRAWBACK--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 191.11  Tradeoff.

    (a) Exchanged merchandise. To comply with Secs. 191.21 and 191.22 of 
this part, the use of domestic merchandise taken in exchange for 
imported merchandise of the same kind and quality (as defined in 
Sec. 191.2(x)(1) of this part for purposes of 19 U.S.C. 1313(b)) shall 
be treated as use of the imported merchandise if no certificate of 
delivery is issued covering the transfer of the imported merchandise. 
This provision shall be known as tradeoff and is authorized by 
Sec. 313(k) of the Act, as amended (19 U.S.C. 1313(k)).
    (b) Requirements. Tradeoff must occur between two separate legal 
entities but it is not necessary that the entity exchanging the imported 
merchandise be the importer thereof. In addition, tradeoff must consist 
of an exchange of same kind and quality merchandise and nothing else 
(the exchange may be of different quantities of same kind and quality 
merchandise, but may not involve the payment or receipt of cash payments 
or other than same kind and quality merchandise). If the quantities of 
merchandise exchanged are different, the lesser quantity shall be the 
quantity available for drawback. If the quantity of domestic merchandise 
received is greater than the quantity of imported merchandise exchanged, 
the merchandise identified for drawback shall be the portion of the 
domestic merchandise equal to the quantity of imported merchandise which 
is first received.
    (c) Application. Each would-be user of tradeoff, except those 
operating under an approved specific manufacturing drawback ruling 
covering substitution, must apply to the Duty and Refund Determination 
Branch, Office of Regulations and Rulings, Customs Headquarters, for a 
determination of whether the imported and domestic merchandise are of 
the same kind and quality. For those users manufacturing under 
substitution drawback, this request should be contained in the 
application for a specific manufacturing drawback ruling (Sec. 191.8). 
For those users manufacturing under a general manufacturing drawback 
ruling (Sec. 191.7), the request should be made by a separate letter.

[T.D. 98-16, 63 FR 11006, Mar. 5, 1998; 63 FR 15288, Mar. 31, 1998]