What type of rejected merchandise is eligible for substitution drawback under 19 CFR 190.45?
How to get there
Rejected-merchandise drawback (19 U.S.C. 1313(c)) normally requires the actual imported goods to be exported or destroyed. Section 190.45 creates the one substitution exception:
19 CFR 190.45(a): Special rule for substitution… drawback upon the exportation or destruction under CBP supervision of imported merchandise which has been entered … for consumption, duty-paid and ultimately sold at retail by the importer, or the person who received the merchandise from the importer, and for any reason returned to and accepted by the importer …
Retail sale, then a return for any reason. That's D.
Why the other choices are wrong
19 CFR 190.42(b)… to establish that the merchandise did not conform to sample or specification, was shipped without the consent of the consignee, or was defective as of the time of importation (see § 190.45 for additional requirements for claims made on rejected retail merchandise …)
A) Didn't conform to sample or specifications, B) shipped without the consignee's consent and C) defective at importation: these are the three classic rejection grounds. They support rejected-merchandise drawback on the same goods (direct identification), not substitution.
Tip
Substitution for returned retail goods (§ 190.45(b)) requires: a designated import within 1 year before the export or destruction, and the same 8-digit HTSUS and the same product identifier (part number, SKU) for both. The refund is capped at 99% of duties paid.
Sources: 19 CFR 190.45; 190.42(b) (eCFR); 19 U.S.C. 1313(c).
CBP answer key: Answer D · 19 CFR 190.45Source: CBP past exams ↗