[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR191.11]



[Page 532]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 191_DRAWBACK--Table of Contents

 

                      Subpart A_General Provisions

 

Sec.  191.11  Tradeoff.



    (a) Exchanged merchandise. To comply with Sec. Sec.  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]



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