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April 2026, question 46

Entry / Entry Summary · Drawback

What type of rejected merchandise is eligible for substitution drawback under 19 CFR 190.45?

  1. Merchandise that did not conform to sample or specifications.
  2. Merchandise that was shipped without the consent of the consignee.
  3. Merchandise that was determined to be defective as of the time of importation.
  4. Merchandise that was ultimately sold at retail and returned for any reason.
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CBP's answer: D. D: Merchandise that was ultimately sold at retail and returned for any reason.

Section 190.45 is the substitution drawback rule for returned retail merchandise: duty-paid merchandise ultimately sold at retail and for any reason returned to and accepted by the importer or the person who received it from the importer. That is D. Nonconforming, unconsented or defective merchandise is covered by other drawback rules, not by 190.45.

ultimately sold at retail by the importer, or the person who received the merchandise from the importer, and for any reason returned to and accepted by the importer 19 CFR 190.45(a)

Search for: Returned retail merchandise

CBP's key cites: 19 CFR 190.45

Question and key from CBP's April 2026 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).