C.F.R. » Title 19 » CHAPTER III—INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE › PART 351—ANTIDUMPING AND COUNTERVAILING DUTIES › Subpart E—Identification and Measurement of Countervailable Subsidies

19 C.F.R. § 351.519

Remission or drawback of import charges upon export

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(a) Benefit—(1) In general. The term “remission or drawback” includes full or partial exemptions and deferrals of import charges.

(i) Remission or drawback of import charges. In the case of the remission or drawback of import charges upon export, a benefit exists to the extent that the Secretary determines that the amount of the remission or drawback exceeds the amount of import charges on imported inputs that are consumed in the production of the exported product, making normal allowances for waste.

(ii) Exemption of import charges. In the case of an exemption of import charges upon export, a benefit exists to the extent that the exemption extends to inputs that are not consumed in the production of the exported product, making normal allowances for waste, or if the exemption covers charges other than import charges that are imposed on the input.

(iii) Deferral of import charges. In the case of a deferral, a benefit exists to the extent that the deferral extends to inputs that are not consumed in the production of the exported product, making normal allowance for waste, and the government does not charge appropriate interest on the import charges deferred.

(2) Substitution drawback. “Substitution drawback” involves a situation in which a firm uses a quantity of home market inputs equal to, and having the same quality and characteristics as, the imported inputs as a substitute for them. Substitution drawback does not necessarily result in the conferral of a benefit. However, a benefit exists if the Secretary determines that:

(i) The import and the corresponding export operations both did not occur within a reasonable time period, not to exceed two years; or

(ii) The amount drawn back exceeds the amount of the import charges levied initially on the imported inputs for which drawback is claimed.

(3) Amount of the benefit—(i) Remission or drawback of import charges. If the Secretary determines that the remission or drawback, including substitution drawback, of import charges confers a benefit under paragraph (a)(1) or (a)(2) of this section, the Secretary normally will consider the amount of the benefit to be the difference between the amount of import charges remitted or drawn back and the amount paid on imported inputs consumed in production for which remission or drawback was claimed.

(ii) Exemption of import charges. If the Secretary determines that the exemption of import charges upon export confers a benefit, the Secretary normally will consider the amount of the benefit to be the import charges that otherwise would have been paid on the inputs not consumed in the production of the exported product, making normal allowance for waste, and the amount of charges other than import charges covered by the exemption.

(iii) Deferral of import charges. If the Secretary determines that the deferral of import charges upon export confers a benefit, the Secretary will normally treat a deferral as a government-provided loan in the amount of the import charges deferred on the inputs not consumed in the production of the exported product, making normal allowance for waste, according to the methodology described in § 351.505. The Secretary will use a short-term interest rate as the benchmark for deferrals of one year or less. The Secretary will use a long-term interest rate as the benchmark for deferrals of more than one year.

(4) Exception. Notwithstanding paragraph (a)(3) of this section, the Secretary will consider the entire amount of an exemption, deferral, remission or drawback to confer a benefit, unless the Secretary determines that:

(i) The government in question has in place and applies a system or procedure to confirm which inputs are consumed in the production of the exported products and in what amounts, and the system or procedure is reasonable, effective for the purposes intended, and is based on generally accepted commercial practices in the country of export; or

(ii) If the government in question does not have a system or procedure in place, if the system or procedure is not reasonable, or if the system or procedure is instituted and considered reasonable, but is found not to be applied or not to be applied effectively, the government in question has carried out an examination of actual inputs involved to confirm which inputs are consumed in the production of the exported product, and in what amounts.

(b) Time of receipt of benefit. In the case of the exemption, deferral, remission or drawback, including substitution drawback, of import charges, the Secretary normally will consider the benefit as having been received:

(1) In the case of remission or drawback, as of the date of exportation;

(2) In the case of an exemption, as of the date of the exportation;

(3) In the case of a deferral of one year or less, on the date the import charges became due; and (4) In the case of a multi-year deferral, on the anniversary date(s) of the deferral.

(c) Allocation of benefit to a particular time period. The Secretary normally will allocate (expense) the benefit from the exemption, deferral, remission or drawback of import charges to the year in which the benefit is considered to have been received under paragraph (b) of this section.

Notes of Decisions
Cited in 14 cases (1 in the last 5 years), 2001–2025 · leading case: Guizhou Tyre Co. v. United States, 348 F. Supp. 3d 1261 (Ct. Intl. Trade 2018).
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Guizhou Tyre Co. v. United States, 348 F. Supp. 3d 1261 (Ct. Intl. Trade 2018). · cites it 6× “Pursuant to 19 C.F.R. § 351.519 (a)(1)(ii), "a benefit exists to the extent that the exemption extends to inputs that are not consumed in the production of the exported product.”
MTZ Polyfilms, Ltd. v. United States, 659 F. Supp. 2d 1303 (Ct. Intl. Trade 2009). · cites it 9× “Final Decision Memo at 13 (citing 19 C.F.R. § 351.519 (b)(2)). Accordingly, Commerce’s calculation of the DEPS benefit should in principle exclude shipments exported prior to the period of review even if the licenses associated with those shipments are issued within the period…”
Royal Thai Gov't v. United States, 436 F.3d 1330 (Fed. Cir. 2006). · cites it 5× “The court based its conclusion on Commerce’s interpretation and application of 19 C.F.R. § 351.519 , which governs drawback of import charges upon export.”
ATC Tires Private Ltd. v. United States, 2018 CIT 79 (Ct. Intl. Trade 2018). · cites it 8× “Further, Alliance argues that the Government of India has sufficient monitoring mechanisms in place at SEZ and EOU facilities to ensure that these facilities operate outside the customs territory of India, and that Commerce should not have relied on 19 C.F.R. § 351.519 (a)(4) to…”
Guizhou Tyre Co., Ltd. v. United States, 2019 CIT 59 (Ct. Intl. Trade 2019). · cites it 5× “The regulatory scheme under 19 C.F.R. § 351.519 (a)(1)(i) requires respondents to demonstrate that the foreign government has a reasonable system or procedure in place to confirm which inputs are consumed in the production process and in what amounts.”
Royal Thai Gov't v. United States, 341 F. Supp. 2d 1315 (Ct. Intl. Trade 2004). · cites it 4× “19 C.F.R. § 351.519 governs the drawback of import charges upon export.”
Jacobi Carbons AB v. United States, 2018 CIT 46 (Ct. Intl. Trade 2018). “(footnote citation omitted); see also 19 C.F.R. § 351.519 (governing the "[r]emission or drawback of import charges upon export").”
Bethlehem Steel Corp. v. United States, 162 F. Supp. 2d 639 (Ct. Intl. Trade 2001). · cites it 3× “Commerce reiterated that its obligation to investigate an alleged subsidy is triggered only where that subsidy appears to be countervailable and that it will countervail duty drawback programs only where such programs run counter to the provisions of 19 C.F.R. § 351.519 .…”
Rebar Trade Action Coal. v. United States, 2019 CIT 65 (Ct. Intl. Trade 2019). · cites it 3× “, the Department was unable to issue a supplemental questionnaire response to the [Government of Turkey ("GOT") ] concerning the extent to which this program constitutes a financial contribution, is specific under sections 771(5)(D) and 771(5A) of the Act, and provides a benefit…”
Gold East Paper (Jiangsu) Co., Ltd. v. United States, 2015 CIT 37 (Ct. Intl. Trade 2015). · cites it 2× “§ 1677 (5A)(D)(iii)(I) and the program was not administered in a manner in accordance with 19 C.F.R. § 351.519 (a)(4)®, even though it determined that the assistance provided by the Thai Board of Investment under the IPA did not constitute an export subsidy.”
Essar Steel, Ltd. v. United States, 395 F. Supp. 2d 1275 (Ct. Intl. Trade 2005). · cites it 2× “19 C.F.R. § 351.519 (b)(2). Seizing upon the word “normally” in the regulation, Es-sar argues that because it did not use a DEPS license on sales of subject merchandise to the United States during the POR, it rebutted the presumption in favor of calculating benefits on an “as…”
CS Wind Malaysia Sdn. Bhd. v. United States, 2025 CIT 149 (Ct. Intl. Trade 2025). · cites it 8× “See generally 19 C.F.R. § 351.519 (referring to such forgone customs duties as “import charges”).”
Show all 14 citing cases →
— 19 C.F.R. § 351.519(a)(4) — 2 cases
ATC Tires Private Ltd. v. United States, 2018 CIT 79 (Ct. Intl. Trade 2018). “Further, Alliance argues that the Government of India has sufficient monitoring mechanisms in place at SEZ and EOU facilities to ensure that these facilities operate outside the customs territory of India, and that Commerce should not have relied on 19 C.F.R. § 351.519 (a)(4) to…”
CS Wind Malaysia Sdn. Bhd. v. United States, 2025 CIT 149 (Ct. Intl. Trade 2025). “See generally 19 C.F.R. § 351.519 (referring to such forgone customs duties as “import charges”).”
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