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Activity Code 1a – Drawback Bond
Activity Code 1a – Drawback Bond
19 CFR § 113.65 – May be written as either a single transaction or continuous bond.
When merchandise is imported into the United States and later exported, a principal may be entitled to a refund of most duties, taxes, and fees – referred to as a drawback claim. A drawback claimant may receive the refund granted before liquidation of the drawback claim. A Drawback Bond guarantees full repayment to CBP of overpaid drawback as determined by liquidation of the drawback claim.
Drawback bonds may be written as single transaction or continuous:
- A single transaction bond can only be used for one customs transaction.
- A continuous bond is a self-renewing bond that covers all customs transactions through any port of entry.
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