Once a drawback claim is made based on a duty comparison between the aggregate of the U.S. duties paid on the imported goods and the Canadian duties paid on the exported good, no other claims should be made designating that exported good. Specifically, the value of the exported product designated on the drawback claim is divided by the total value of all products produced. That number is multiplied by the duty which results in the allowable duty for the exported product. Only Product 1 is exported with benefit of drawback. This applies only to claims designating exports to Canada on or after January 1, 1996.
All merchandise covered by the following exemptions are eligible for full drawback.
Claimants that have commingled fungible goods in inventory, such as parts, can use an inventory management system to determine origin of goods for drawback purposes. The allowable inventory methods are set forth in Schedule X, which is an appendix to Part 181 of the Customs Regulations. These inventory methods include FIFO, LIFO, and averaging. No other inventory methods have been approved. This evidence should consist of a copy of the CF 7501 on which the goods were entered indicating a CA or MX beside the tariff number.