International Trade Today is providing readers with some of the top stories for Aug. 7-11 in case they were missed.
Drawback
A duty drawback is a refund by CBP of the duties, taxes, or fees paid on imported goods, which were imposed upon importation as prescribed in 19 U.S.C. 1313(d). More broadly, a drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law.
Customs brokerages, law firms, and other members of the trade community are angling to secure eligibility of distilled spirits for substitution drawback under new regulations set to take effect Feb. 24, industry sources said in recent interviews. On that date, simplified substitution drawback enacted through the Trade Facilitation and Trade Enforcement Act will take effect, generally enabling substitution drawback to cover imports and exports with the same eight-digit HTS or Schedule B number. But questions surround whether CBP will deem distilled spirit exports eligible for substitution, due to the agency’s historical drawback treatment regarding alcohol-related excise taxes and technical classifications of U.S. production facilities.
CBP will use several phases to deploy post-release capabilities in ACE, CBP said in a July 27 CSMS message. The agency will separate out the collections functionalities and "deploy the other post release capabilities of ACE core using a phased approach," CBP said. CBP previously planned to deploy all the post-release capabilities on July 8 but delayed the deployment after further testing was deemed necessary (see 1706270049).
CBP released a revised schedule for deploying post-release capabilities in ACE in a July 27 CSMS message. The agency will separate out the collections functionalities and "deploy the other post release capabilities of ACE core using a phased approach," said CBP.
Customs brokerage Thomas Ferramosca Associates recently sent a letter to House lawmakers calling for legislation to allow firms to claim drawback on duty-liable imported goods withdrawn from foreign-trade zones for direct export. In a July 18 letter to Ways and Means Chairman Kevin Brady, R-Texas, and to the congressman representing the Staten Island, New York, brokerage’s district, Rep. Dan Donovan (R), Tom Ferramosca Jr. said that allowing for direct export qualifications could be an “enticement” for companies to produce and export more from the U.S., in part because “the more that’s exported, the more that can be claimed against merchandise sold in the U.S. with potential duty liability.” If allowed drawback benefits, FTZ goods classified as “privileged foreign” or “non-privileged foreign” provide “the greatest opportunities” to boost U.S. manufacturing, expand exports and stimulate job growth, the letter says.
International Trade Today is providing readers with some of the top stories for July 17-21 in case they were missed.
The Treasury Department published an updated 2017 regulatory agenda for CBP (here) that mentions several new rulemakings that weren't included in the last update (see 1611180003). The agenda includes a newly mentioned proposal for updates and modifications to the (a)(1)(A) list of records required for the entry of merchandise (here). That list is included within the appendix to 19 CFR Part 163 (here). CBP seeks to publish the proposal in October, according to the agenda.
The House Appropriations Committee on July 18 approved fiscal year 2018 funding legislation for the Department of Homeland Security, which encourages CBP to run a pilot for the Fish and Wildlife Service ACE message set “as soon as is feasible,” according to the bill’s committee report (here). “Providing a centralized online access point to connect CBP, the trade community, and partner government agencies will enhance government data collection for international trade transactions while expediting cargo processing and protecting against prohibited shipments,” the report says. The Fish and Wildlife Service suspended its ACE import and export pilots earlier this year following complaints from the trade (see 1701190011)
International Trade Today is providing readers with some of the top stories for July 3-7 in case they were missed.
A tuna importer’s request for drawback should be rejected because the importer exported the tuna from a different port, yet didn’t file required documentation to transport the tuna between ports under bond, CBP said in a recent ruling (here). For merchandise transported in-bond before export, Form 7512 or its electronic equivalent is part of the proof of exportation required on drawback claims, CBP said in ruling HQ H284687.