CBP has announced that it will deploy Core and Trade Facilitation and Trade Enforcement Act (TFTEA) drawback in the Automated Commercial Environment (ACE) on February 24, 2018, at which time all Automated Broker Interface (ABI) drawback filings must be filed in ACE and will no longer be accepted in the Automated Commercial System (ACS). CBP states:
The February 24th deployment includes ACE core drawback capabilities which align with current drawback laws, as well as the ability to file drawback claims pursuant to the new TFTEA legislation. For one year following the deployment – from February 2018 to February 2019 – claimants may file either core drawback or TFTEA drawback, as both the current and new laws will be in effect during this time. Following February 2019, trade users will only be able to file TFTEA drawback claims. The table below outlines the provisions accepted for Core and TFTEA drawback claims. CBP will publish further policy guidance for TFTEA drawback by mid-February 2018.
| Drawback Provisions | Core Feb 24, 2018 – Feb 23, 2019 | TFTEA Feb 24, 2019 and Onward |
| Ability to file electronically | X | X |
| Ability to file paper | X | |
| Required to file electronically | X | |
| Built in system validations | X | X |
| Integration with post release processes | X | X |
| Improved system controls | X | X |
| Requires line level reporting | X | |
| Substitution based on 8-digit HTS or Schedule B number | X | |
| Recordkeeping requirement three years from date of liquidation | X | |
| All claims due five years from date of importation | X | |
| Reliance on documents kept in “normal course of business” | X | |
| Drawback refunds a 99% of duties taxes and fees | X |
Core Drawback
Are filers able to file a non-ABI drawback claim?
Yes; until February 23, 2019, manual drawback claims will still be accepted at Drawback Centers. In order to submit a manual drawback claim, a filer will need to prepare and submit a Drawback Coding Sheet and non-ABI claimants must provide the same CBP forms and supporting documentation that were being filed in ACS. It is important to note that, after the February deployment, manual drawback claims will be limited to 25 total lines/imports; and/or 25 total styles; and/or 25 total exports. Following submission, manual claims will be processed within 90 days. Claims submitted via ABI will have processing priority over manual claims. If rejected, manual filers will receive a written notice of cause for rejection. Rejected claims may be corrected and resubmitted, subject to the three-year export filing period.
How do I file with an Accelerated Payment for Core Drawback?
In order to file a drawback claim with an Accelerated Payment request indicator, a filer must have a valid bond with CBP. If a bond is either insufficient, or it is expired, CBP will not reject the claim, but rather the Accelerated Payment request indicator will be removed. In order for it to be added back, the filer will need to contact their Drawback Center and work with the drawback specialist after they have corrected the bond issue.
Core and TFTEA Drawback
What are the filing changes?
In addition to what is outlined in the table above, the deployment and mandatory use of drawback in ACE for ABI submissions will result in a number of changes to the filing process for both core and TFTEA drawback claims. For example, filers will submit only entry type 47 for drawback; entry types 41-46 have been consolidated to the type 47 entry and will no longer be valid. Also, when submitting a drawback claim, filers will be required to provide the applicable provision. The drawback provision is an existing data element from CBP form 7551. If transmitting using ABI, it will need to be specified in the 10 record format. The list of Provisions can be found in Appendix A in the Drawback CATAIR.
Following the transition from ACS to ACE, filers will also need to upload documents via the Document Image System (DIS) to complete the drawback claim. If additional information is required, CBP will send a CBP Form 28 (Request for Information) to the filer through the ACE Portal or by U.S. mail. ABI filers may submit a response to the CBP Form 28 using DIS. Non-ABI filers may respond by mail.
Trade filers will also be required to provide an action indicator for each import and/or manufacturing record, informing CBP of the end result of the import. The list of action indicators are listed below:
- D = Destroyed
- L = Laden as Supplies
- M = Mail Shipment
- G = Government Mail
- V = Vessels or Aircrafts
- E = Exported
- X = Manufactured
- T = Manu. & Trans. or Trans Only
- F = Exported to FTZ
More information on action indicators can be found in the ACE Entry Summary Business Rules and Process Document.
In addition, there are two new class codes for Drawback, 674 (oil spills tax) and 675 (domestic paid tax).
TFTEA Drawback
What are the filing changes?
In addition to what is outlined in the table above, the following changes will also apply when filing TFTEA drawback claims:
- There will be a limit on the number of records per claim. Specifically, each claim can have a combination of 5000 parts, pieces, and styles in the import, manufacturing, and export or destroyed records per drawback claim.
- Substitution will now be based on an 8 – digit Harmonized Tariff Schedule or Department of Commerce Schedule B number.
- When filing an ABI drawback claim, the paper CBP drawback entry form 7551 and the Delivery Certificate form 7552 will no longer be required.
What are the elements of a complete drawback claim?
Filing an ACE drawback claim will require different data elements than were required in ACS. A complete drawback claim will consist of a successful claim acceptance in ACE and the DIS submission within 24 hours of acceptance in ACE of all applicable documents:
- CBP Form 7553: Notice(s) of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback
- For 1313(j)(2): Commercially interchangeable determination ruling (CID) approval letter
- For 1313(c)(1), 1313(c)(2), 1313(c)(3): Documents to establish that merchandise did not conform to sample or specification, was shipped without the consent of consignee, or was defective as of the time of importation
- For 5062(c): Certification of the importer setting forth in detail the facts which cause the merchandise to be unmerchantable
- For 1313(d): Production Exhibit
- For 1313(p): Electronic Petroleum Certification
- CBP Form 214: Exports to a Foreign Trade Zone
- CBP Form 7514 or Master Declaration for FTZ Transfers
- Oil Spill Tax: Tax worksheet, certification and copy of the tax return IRS Forms 720, 720x, and 6627
What information will a filer be required to provide when filing a claim?
- Drawback Entry Number
- Filing Port Code
- Claimant ID Number
- Drawback Provision
- Drawback Claim Date
- Total drawback claim amount requested
- Import Entry Summary/HTS Data
- Information on Exportation or Destruction
- Notice of Intent to Export or Destroy (if applicable)
- NAFTA Coding Sheet
When filing an electronic drawback claim in ACE how do I know that it has been submitted?
Once a drawback entry has passed all validations, the filer will receive an automated message indicating that the claim has been successfully accepted. If CBP rejects a claim submission, the filer will receive an automated message identifying the data element that resulted in the rejection. Rejected claims may be corrected and resubmitted, subject to the three-year export filing period.
ACS to ACE Cutover Plan
An ACS to ACE cutover plan for Drawback is forthcoming.
Are there any additional drawback resources available?
- ACE Drawback CATAIR – DRAFT
- ACE Drawback Error Dictionary
- The updated ACE Entry Summary Business Rules and Process Document
- Informational webinars on drawback filing in ACE are available on CBP.gov
- Federal Register Notice (FRN) 83 FR 2644 was published on January 18, 2018 to announce the transition of Core drawback filing in ACE
- ACE Drawback Frequently Asked Questions
- Monthly Drawback Simplification Newsletters
- DIS Implementation Guide: A programming guide for the Document Image System
- DRAFT Drawback: Interim Guidance for Filing TFTEA Drawback Claims Version 1.1 (February 5, 2018)
CBP’s Trade Transformation Office (TTO) will host a daily Drawback support call from February 26, 2018 to March 2, 2018 between 3:00 PM ET and 4:00 PM ET to answer questions related to the February 24th deployment. Call-In: (877) 336-1829, Participant Code: 4840827.
