Example 1:
Line item 1-5,000 articles valued at $10 each total $50,000
Line item 2-6,000 articles valued at $15 each total $90,000
Line item 3-10,000 articles valued at $20 each total $200,000
Total units = 21,000
Total value = $340,000
Merchandise processing fee = $485 (for purposes of this example, the fee cap of $485, as per 19 U.S.C. 58c(a)(9)(B)(i) , is applicable)
Line item relative value ratios. The relative value ratio for line item 1 is calculated by dividing the value of that line item by the total value ($50,000 ÷ 340,000 = .1470). The relative value ratio for line item 2 is .2647. The relative value ratio for line item 3 is .5882.
Merchandise processing fee apportioned to each line item. The amount of fee attributable to each line item is calculated by multiplying $485 by the applicable relative value ratio. The amount of the $485 fee attributable to line item 1 is $71.295 (.1470 * $485 = $71.295). The amount of the fee attributable to line item 2 is $128.3795 (.2647 * $485 = $128.3795). The amount of the fee attributable to line item 3 is $285.277 (.5882 * $485 = $285.277).
Amount of merchandise processing fee eligible for drawback per line item. The amount of merchandise processing fee eligible for drawback for line item 1 is $70.5821 ÷ (.99 * $71.295). The amount of fee eligible for drawback for line item 2 is $127.0957 (.99 * $128.3795). The amount of fee eligible for drawback for line item 3 is $282.4242 (.99 * $285.277).
Amount of merchandise processing fee eligible for drawback per unit of merchandise. The amount of merchandise processing fee eligible for drawback per unit of merchandise is calculated by dividing the amount of fee eligible for drawback for the line item by the number of units in the line item. For line item 1, the amount of merchandise processing fee eligible for drawback per unit is $.0141 ($70.5821 ÷ 5,000 = $.0141). If 1,000 widgets form the basis of a claim for drawback under 19 U.S.C. 1313(j) , the total amount of drawback attributable to the merchandise processing fee is $14.10 (1,000 * .0141 = $14.10). For line item 2, the amount of fee eligible for drawback per unit is $.0212 ($127.0957 ÷ 6,000 = $.0212). For line item 3, the amount of fee eligible for drawback per unit is $.0282 ($282.4242 ÷ 10,000 = $.0282).
Example 2: This example illustrates the treatment of dutiable merchandise that is exempt from the merchandise processing fee and duty-free merchandise that is subject to the merchandise processing fee.
Line item 1-700 meters of printed cloth valued at $10 per meter (total value $7,000) that is exempt from the merchandise processing fee under 19 U.S.C. 58c(b)(8)(B)(iii)
Line item 2-15,000 articles valued at $100 each (total value $1,500,000)
Line item 3-10,000 duty-free articles valued at $50 each (total value $500,000)
The relative value ratios are calculated using line items 2 and 3 only, as there is no merchandise processing fee imposed by reason of importation on line item 1.
Line item 2-1,500,000 ÷ 2,000,000 = .75 (line items 2 and 3 form the total value of the merchandise subject to the merchandise processing fee).
Line item 3-500,000 ÷ 2,000,000 = .25.
If the total merchandise processing fee paid was $485, the amount of the fee attributable to line item 2 is $363.75 (.75 * $485 = $363.75). The amount of the fee attributable to line item 3 is $121.25 (.25 * $485 = $121.25).
The amount of merchandise processing fee eligible for drawback for line item 2 is $360.1125 (.99 * $363.75). The amount of fee eligible for line item 3 is $120.0375 (.99 * $121.25).
The amount of drawback on the merchandise processing fee attributable to each unit of line item 2 is $.0240 ($360.1125 ÷ 15,000 = $.0240). The amount of drawback on the merchandise processing fee attributable to each unit of line item 3 is $.0120 ($120.0375 ÷ 10,000 = $.0120).
If 1,000 units of line item 2 were exported, the drawback attributable to the merchandise processing fee is $24.00 ($.0240 * 1,000 = $24.00).
19 C.F.R. §191.51