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CSMS #42561433 - Drawback: Application Approvals for TFTEA General Rulings Under 1313(b)

CBP will begin approving applications for general rulings filed pursuant to TFTEA and 19 USC 1313(b). This will include applications filed pursuant to CBP Dec. 20-07 (HQ H305255) for component parts.

Component Part Rulings  - T.D. 81-300

For new component part ruling applications under T.D. 81-300, applicants must remove the HTS parallel columns from their application and provide the following signed stipulation statement with each application in addition to the information required by the ruling:

The manufacturer or producer hereby agrees to the below listed substitution requirements: 

1. The manufacturer or producer must identify all the imported and substituted component parts by description that will be used within the Process of Manufacture or Production of the exported (or destroyed) article.
2. The proposed substitution of component parts cannot alter the Process of Manufacture or Production.
3. The substituted components used in producing the exported (or destroyed) articles on which drawback is claimed must be classifiable under the same 8-digit HTSUS classification number as the designated components. Specifications, drawings, or other documentation describing the substituted components maintained in the normal course of business will be maintained and made available for CBP Officials to verify classification of products.  In order to obtain drawback it is necessary to prove that the merchandise, which is to be substituted for the imported merchandise or drawback products, is classifiable under the same 8-digit HTSUS classification.
4. To enable CBP to verify the required identity of the 8-digit HTSUS classification of the substituted merchandise for which it is being substituted, the applicant must attach to this ruling request a representative Bill of Materials (BOM) and/or Formulas for each distinct Process of Manufacture, which is an exhaustive list of all merchandise used in the Process of Manufacture, as defined under 19 CFR 190.2, identifying by 8-digit HTSUS number each component or element, material, chemical, mixture, or other substance incorporated into the manufactured article.  However, the 8-digit HTSUS classification numbers referenced in the BOM/Formula will not be confirmed by CBP upon approval of this manufacturing ruling, but are subject to verification during claim processing.  Any HTSUS provisions referenced in BOMs/Formulas submitted with drawback manufacturing rulings issued under 19 CFR 190 are information provided by the requester.  To obtain a binding ruling on the tariff classification of this merchandise, a request may be submitted in accordance with 19 CFR 177.2. 
5. The manufacturer or producer will submit an updated representative BOM and/or Formula, to the Drawback Office which liquidates its claims, in the event that there are any changes to the components, elements, materials, chemicals, mixtures, or other substances incorporated into the manufactured article in the Process of Manufacture and being claimed for drawback, or to their proposed 8-digit HTSUS classification.

DECLARATION OF OFFICIAL

I declare that I have read this application for a general manufacturing drawback ruling; that I know the averments and agreements contained herein are true and correct; and that my signature on this __ day of ____ 20__, makes this application binding on

(Name of Applicant Corporation, Partnership, or Sole Proprietorship)

By

(Signature and Title)

(Print Name)

Section 190.6(a) requires that letters of notification of intent to operate under a general manufacturing drawback ruling be signed or electronically certified by any individual legally authorized to bind the person (or entity) for whom the application is signed or the owner of a sole proprietorship, a full partner in a partnership, an individual acting on his or her own behalf, or, if a corporation, the president, a vice president, secretary, treasurer or employee legally authorized to bind the corporation. In addition, any employee of a business entity with a customs power of attorney may sign such an application, as may a licensed customs broker with a customs power of attorney.

Claimants are reminded that rulings approved under T.D. 81-300 require the merchandise to be substituted based upon part number and HTS. For substitution based upon HTS alone, claimants may withdraw an unapproved application currently on file with CBP and resubmit an application pursuant to CBP Dec. 20-07 (HQ H305255) as applicable.

If a claimant has an approved ruling under T.D. 81-300 and wish to operate under the ruling noted in CBP Dec. 20-07 (HQ H305255), they are required to apply for a new ruling.

Non-Component Rulings

For non-component manufacturing ruling applications under 1313(b), CBP, at its discretion, may require the applicant to perfect their application by requiring a signed stipulation for non-component merchandise and the removal of the parallel columns. In such cases, CBP will notify the applicant in writing should a perfection be required.

 
For questions regarding this issue please contact OTDRAWBACK@CBP.DHS.gov.