International Trade Today is providing readers with some of the top stories for Dec. 10-14 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.
The two customs reauthorization bills recently introduced in the House would both make several changes to the process and rules governing drawback, including a revision to the formula for calculating the drawback amount.
Drawback claims made on goods exported to Chile after January 1, 2012 are subject to U.S.-Chile Free Trade Agreement special treatment as described in 19 U.S.C. 1313(j)(4)(B) and 1313(n), said CBP in a CSMS message. U.S. duty drawback on exportations to Chile started being phased out January 1, 2012, for the following types of drawback:
CBP is extending the comment period to Jan. 10 for an existing information collection concerning CBP protest forms. CBP proposes to extend the expiration date of this information collection with no change to the burden hours or to the information collected.
CBP issued instructions for duty drawback claims for merchandise destroyed by Hurricane Sandy, in a CSMS message. If duties and taxes were paid and the goods are either exported or destroyed, the goods may qualify for a duty drawback refund under 19 U.S.C § 1313(c), it said. The importer will be required to provide documentation to CBP with details about the condition of the merchandise, as well as any insurance claims filed. If the importer has been reimbursed for duties and taxes via an insurance claim, the merchandise is not eligible for drawback, CBP said.
In order to facilitate the roll out of the Automated Commercial Environment (ACE), CBP needs to complete the edits to ACE, said the National Customs Brokers and Forwarders Association of America in a White Paper it submitted to Commissioner Alan Bersin and then again to Deputy Commissioner David Aguilar outlining the position of the NCBFAA and the 900 companies it represents. It said the top priorities must be implemented before CBP even thinks about putting an end to ACS. NCBFAA said the top priorities include:
CBP won't conduct a drawback compliance measurement for FY 2013 and instead "will be doing desk reviews," the CBP spokesman said. CBP performed a drawback compliance measurement test for FY 2012 following in response to the Department of Homeland Security Office of Inspector General annual financial statements audits that found drawback as a material weakness for CBP internal controls over financial reporting.
Post-entry audits of customs filings remain outside of "customs business" and therefore don't require broker licensing, said Myles Harmon, director-commercial and trade facilitation at CBP, in ruling HQ114654. The ruling was in response to a request from Koot & Associates, which asked for CBP input on the legal status of a new subsidiary providing "customs compliance services." The company asked CBP whether employees of the new offices, who will work to identify errors in entry documents using post-entry audit software, are performing "customs business."
CBP will host a Trade Fair to provide members of the trade community the opportunity to speak one on one with representatives of federal agencies involved with imports and exports, CBP said in a CSMS message. The event will be Nov. 8 from 9 a.m. to 3 p.m. at the M.O. Campbell Educational Center located at 1865 Aldine Bender Road, Houston, TX 77032.
CBP issued the following releases on commercial trade and related issues: