April 2023 — Question 60

Which of the following answers is NOT a condition or criteria for identification of merchandise or articles by accounting method for drawback purposes?

• AThe lots of merchandise or articles to be so identified must be fungible.
• BThe person using the identification method must be able to establish that inventory records (for example, material control records), prepared and used in the ordinary course of business, account for the lots of merchandise or articles to be identified as being received into and withdrawn from the same inventory.
• CUnless provided in the section of the U.S. Code of Federal Regulations related to identification of merchandise or articles by accounting method or otherwise specifically approved by Customs (by a binding ruling under Part 177 of Chapter 1 of Title 19 of the U.S. Code of Federal Regulations), all receipts (or inputs) into and all withdrawals from inventory must be recorded in the accounting record.
• DThe records which support any identification method under this section are subject to verification by Customs.
• EAny accounting method which is used by a person for drawback purposes under this section must be used without variation with other methods for a period of at least two (2) years, unless approval is given by Customs for a shorter period.✓ CBP's answer