Unused Merchandise Drawback is the type of drawback claim for imported goods that are exported or destroyed in substantially the same condition as when imported — without manufacturing or alteration beyond minor incidental operations. It is authorized by 19 U.S.C. § 1313(j).
Two pathways:
- Direct identification (1313(j)(1)) — the importer identifies the specific imported units that were exported, using unit numbers, serial numbers, lot codes, or other tracking. Lot accounting methods (FIFO, LIFO, low-to-high) are also acceptable
- Substitution (1313(j)(2)) — exported goods of the same 8-digit HTS substitute for the imported goods. No physical tracing required. See substitution drawback
Permissible operations. "Unused" does not require pristine condition. Permissible operations include:
- Testing, inspection, sorting, repacking, labeling
- Cleaning, applying preservative coatings
- Affixing brand names, country-of-origin markings, or labels for export
Operations that materially change the merchandise — assembly, manufacturing, processing — disqualify the claim for unused drawback (and may instead qualify for manufacturing drawback).
Notice of intent. For direct identification claims, the claimant must file a notice of intent (CBP Form 7553) at least 5 working days before destruction or 2 working days before export, allowing CBP to witness or examine if desired.
Recordkeeping. All records must be retained for 3 years from the date of payment of the drawback claim — and 5 years from the underlying entry under general 19 U.S.C. § 1508. Filed through ACE drawback module.