CBP Finds Dow Methyl Acrylate Interchangeable for Drawback Purposes

Dow Chemical may substitute the import of a chemical with a separate export of that chemical for drawback purposes, said CBP's Entry Process and Duty Refunds Branch in an Feb. 10 ruling recently released. CBP said it considered the imported and exported methyl acrylate commercially interchangeable and eligible for unused merchandise drawback. Specifically, CBP found the chemicals met the criteria for being interchangeable under the drawback statute, 19 U.S.C. Section 1313(j)(2).

Dow, represented on the issue by DHL Drawback Services, imports methyl acrylate "under its own name and exports it under its own name to its various foreign customers," said CBP. Dow provided representative import and export transaction documentation, including a form 7501 entry summary and a bill of lading for the export shipment, said CBP.

Interchangeability Criteria

The drawback statute says drawback may be claimed for the export or destruction of imported duty-paid merchandise that is substituted for commercially interchangeable and unused imported merchandise if certain requirements are satisfied. Governmental and recognized industry standards are among the factors CBP considers in determining interchangeability and while no such standard exists, CBP's laboratory identified an industry standard for methyl acrylate used in paint, it said. CBP found that Dow's chemical falls within that industry standard and that criterion is therefore met.

CBP also reviews tariff classification in looking at interchangeability. The imported and substituted products are classified under the same tariff headings. The CBP form 7501 shows an HTS classification of 2916.12.5020, as did a shipper’s export declaration, the agency said. "Thus, both the import and export documents classify the product in the same tariff subheading," meeting CBP's classification criteria.

CBP also considers whether the imported and substituted product share the same part numbers, but because the shipments at issue are in bulk, part numbers are not relevant in this case, the agency said. Documentation also showed no price change between the imported and exported chemicals, and therefore meets the requirement for similar values on import and export, said CBP. Since the chemicals meet the criteria, CBP found they are interchangeable.