CBP Now Accepting USMCA Drawback Claims in ACE

Trade Update • MARCH 18, 2021

U.S. Customs and Border Protection advised yesterday in a Cargo Systems Message that effective immediately, companies can begin filing United States-Mexico-Canada Agreement Drawback Claims in the Automated Commercial Environment.

Accelerated Payment & USMCA Drawback Claims Processing Still on Hold

Despite the above, the delays first announced last January continue, meaning that claimants with Accelerated Payment privileges will remain unable to obtain AP on USMCA Drawback claims until all of the applicable regulations are implemented (eventually these will be housed in 19 CFR Part 182).

In the meantime, claimants are instructed to submit their USMCA Drawback claims without the AP indicator in ACE, even if they are approved for AP.

USMCA Drawback claims made through ACE using the AP indicator, prior to the effective date of the USMCA regulations, will not be rejected, however, the AP status will be automatically removed and replaced with an informational message.

Once the regulations are fully implemented, eligible claimants will be able to receive AP on USMCA Drawback claims filed during the interim period by requesting CBP to return claims to Trade Control and then re-transmitting the USMCA Drawback claim with the AP indicator.

Drawback claims that do not have AP privileges will be processed normally (liquidated and paid in the ordinary course of business) after the USMCA Drawback regulations are fully implemented.

Beyond acceptance, the processing of USMCA Drawback claims also remains on hold pending the implementation of the applicable regulations.

NAFTA Drawback Claims

Note that claims filed under the North American Free Trade Agreement (which may be made until 2025 for imports dated on/before June 30, 2020) and same condition drawback will remain eligible for AP.

NAFTA and USMCA imports should not be comingled on the same drawback claim. Remember that the date of entry determines which agreement controls, not the date of claim.

Need More Information?

Should you have any questions about this particular update or about filing drawback claims more generally, don’t hesitate to contact one of our knowledgeable trade experts.