CBLE Modernized Drawback question: duty on imported valves entered

CBLEModernized Drawback

An importer paid 5% duty on imported valves entered at $60.00 each. Under substitution unused merchandise drawback, it exports 1,000 domestic valves of the same 8-digit subheading, valued at $40.00 each. Ignoring fees, what is the most it may claim?

A $1,980.00
B $2,000.00
C $2,970.00
D $3,000.00

Show the answer and explanation

Answer: A. $1,980.00

For 1313(j)(2) exports, drawback may not exceed 99 percent of the lesser of the duties paid on the imported merchandise ($3.00 per valve) or the duties that would apply to the exported article if it were imported ($40.00 x 5% = $2.00) (19 CFR 190.32(b)(1)). The lesser is $2.00 x 1,000 = $2,000.00, and 99 percent is $1,980.00. $2,970.00 ignores the lesser-of rule; $2,000.00 forgets the 1 percent. Source: 19 CFR 190.32(b)(1), 190.51(b)(1) (eCFR, as at 7 Oct 2026).

Common mistake

Using the duty paid on the import when the exported article would carry less.

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Original study material mapped to the public CBP exam categories; not a real test question.Independent. Not affiliated with or endorsed by U.S. Customs and Border Protection (CBP). Verify figures and rules against current guidance before relying on them.