CBP, TTB Withdraw Drawback Proposed Rules
U.S. Customs and Border Protection and the Alcohol and Tobacco Tax and Trade Bureau have issued notices announcing that they are withdrawing their October 2009 drawback proposed rules.
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CBP Proposed to Bar Filing of a Substitution Drawback Claim in Certain Situations
CBP had proposed to amend 19 CFR to preclude the filing of a substitution drawback claim1 for Federal excise tax2 paid on imported merchandise in situations where: (1) no excise tax was paid on the substituted merchandise; or (2) the substituted merchandise is the subject of a different claim for refund or drawback of Internal Revenue Code taxes.
TTB had proposed to amend its regulations to clarify the relationship between tax payment under the Internal Revenue Code and drawback of tax under the Tariff Act of 1930 by making conforming amendments to reflect CBP's proposed regulations.
CBP Withdrawing Proposal to Permit Further Consideration of Relevant Issues
CBP states that it is withdrawing its proposed rule so that relevant issues involved in the proposed rulemaking may be further considered.
TTB states that it is withdrawing its proposed rule, as it was based on CBP's proposed rule.
1Substitution drawback," is a type of drawback that permits other merchandise to be substituted for the imported merchandise for purposes of satisfying the exportation or destruction requirement.
2Federal excise taxes are imposed on the manufacture and distribution of certain non-essential consumer goods, such as distilled spirits, wines, beer (IRC Chapter 51), tobacco products (IRC Chapter 52), imported taxable fuel (IRC Chapter 32) and petroleum products (IRC Chapter 38).
(See ITT's Online Archives or 10/15/09 news, 09101520, for BP summary of CBP & TTB issuing proposed rules.
See ITT's Online Archives or 11/25/09 news, 09112510, for BP summary of CBP and TTB extending the comment deadline on their proposed rules to January 12, 2010.
See ITT's Online Archives or 03/01/10 news, 10030150, for BP summary of Senator Schumer announcing the withdrawal of the proposed rules.)
CBP contact - William Rosoff (202) 325-0047
TTB contact - Gerry Isenberg (202) 453-2097
CBP notice (USCBP-2009-0021, FR Pub 03/02/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-4379.pdf
TTB notice (D/N TTB-2009-0005, FR Pub 03/02/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-4374.pdf