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October 2026, question 65

Entry / Entry Summary · Drawback

Jane Sibley, of Sibley Furniture Outlet, needs to destroy merchandise pursuant to an unused merchandise drawback claim under 19 USC 1313(j). Ms. Sibley filed a Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback on CBP Form 7553, notifying CBP that she intends to destroy the merchandise on the seventh working day after CBP’s receipt of her notice. By the date when the merchandise is set to be destroyed, Ms. Sibley had not received notice of CBP’s decision to witness or not witness the destruction. Ms. Sibley proceeds with the destruction of the merchandise as scheduled, without a determination from CBP. Based on the facts above, which ONE of the following statements is TRUE?

  1. Ms. Sibley violated CBP regulations by proceeding with the destruction of merchandise subject to a drawback claim without written approval from CBP.
  2. The merchandise will be deemed to have been destroyed under CBP supervision. As the drawback claimant, Ms. Sibley has no further obligation to certify the destruction of the merchandise.
  3. The merchandise must be destroyed to the extent that it has no commercial value. Additionally, the destruction may include a process by which materials are recovered from imported merchandise or from an article manufactured from imported merchandise.
  4. Ms. Sibley or another officer of Sibley Furniture Outlet must issue evidence of the destruction on CBP Form 7553.
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CBP's answer: C. C: The merchandise must be destroyed to the extent that it has no commercial value. Additionally, the destruction may include a process by which materials are recovered from imported merchandise or from an article manufactured from imported merchandise.

Under 190.71(a), if CBP does not respond within 4 working days to the Form 7553 notice, the merchandise may be destroyed without delay and is deemed destroyed under CBP supervision, so Ms. Sibley did not violate the rules (A is wrong). Destruction means destroying the goods to the extent they have no commercial value, and for 1313(j) claims it includes a process that recovers materials, with the value of recovered materials deducted (190.71(d), 190.2). C is right. Under 190.71(b), when CBP does not attend, the evidence of destruction comes from a disinterested third party, so D (her own evidence on Form 7553) is wrong, and B is wrong because evidence is still required.

destruction means the destruction of articles or merchandise to the extent that they have no commercial value 19 CFR 190.2
a destruction may include a process by which materials are recovered from imported merchandise or from an article manufactured from imported merchandise 19 CFR 190.71(d)

Search for: destruction of articles or merchandise to the extent that they have no commercial value

CBP's key cites: 19 CFR 190.71

Question and key from CBP's October 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).