U.S. Customs and Border Protection (CBP) issued Notice of Proposed rulemaking – Modernized Drawback, on July 27. Comments on the proposal are due by September 13.
The changes are pursuant to the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA). Per CBP, proposed regulations will liberalize merchandise substitution standard, simplify recordkeeping requirements, extend and standardize timelines for filing drawbacks, and require the electronic filing of drawback claims.
Key elements as follows:
The notice is to clarify the prohibition on filing substitution drawback claims on federal excise tax paid for imported goods where no excise tax was paid upon the substituted goods; or where the substituted goods are subject to a different claim for refund or drawback of tax under any provision of the internal Revenue Code. CBP has identified alcoholic beverages, taxable fuels, and tobacco as the goods most likely would have taken advantage of this drawback type.
Allowing substitution drawback on goods within the same eight digit tariff number (some exception), thereby eliminating the requirement of commercial interchangeability.
The Importer of the goods will be jointly and severally liable with the drawback claimant for refunds of their imported goods when designated on a drawback claim.
Provides advice how drawback claims are to be filed in the transition period, interim policy guidance procedures for filing claims prior to the regulations becoming final.
As published by American Shipper on July 30: https://www.americanshipper.com/main/fullasd/cbp-uncorks-proposed-drawback-rule-72117.aspx
U.S. Customs and Border Protection Modernized Drawback Notice dated July 27, 2018 is available at the following link: https://s3.amazonaws.com/public-inspection.federalregister.gov/2018-16279.pdf