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Can heat-treated, alloy-coated imported pistons get unused merchandise drawback?

May 2024 examModernized DrawbackQuestion 21 of 80

Factory imports pistons from Italy. Factory subjects the pistons to heat treatment and coats them with a specialized alloy, in order to render them fit for use in motorcycle engines. Any pistons Factory does not sell to domestic engine manufacturers are exported for sale abroad. May Factory claim unused merchandise drawback on the exported pistons?

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CBP answer key: Answer B · 19 C.F.R. § 190.2, 190.31(c), 190.32(e)Source: CBP past exams ↗