Duty Drawback: TFTEA Substitution Standards — Clarification on Interchangeable Merchandise
DrawbackTFTEA
CBP clarified that under 19 CFR 190, drawback claimants may substitute imported and exported merchandise at the 8-digit HTSUS level for substitution unused merchandise drawback, but must document commercial interchangeability where the 8-digit description is broad. This resolves ambiguity that had led to denials on apparel and chemical claims filed since 2024.
Who it affects
Manufacturers, distributors, and drawback filers claiming under 19 USC 1313(j)(2) substitution unused merchandise, particularly in apparel, chemicals, and food and beverage categories.
What changed
Same 8-digit HTSUS number is presumptively substitutable — no additional showing required for narrow HTS categories.
For broad 8-digit categories (identified in appendix to the CSMS), claimants must maintain commercial interchangeability documentation on file for CBP audit.
Denials issued between January 2025 and April 2026 solely on this basis are eligible for reconsideration on written request within 90 days.
Action required
Review any drawback denials from the past 15 months for eligibility to request reconsideration.
If claiming substitution on a broad HTS, prepare an interchangeability memo (specifications, commercial use, quality standards) and retain with the claim file.
Update drawback program documentation to reference the new CSMS guidance for future audit response.
Relevant HTS / regulation
19 CFR 190.3219 USC 1313(j)(2)
Affected by this CSMS?
Have us audit your entries — we'll quantify the exposure or the recoverable refund in 10 business days.