Cargo Systems Messaging Service
CSMS # 61941423 - Drawback Compliance Reminders
U.S. Customs and Border Protection is reminding drawback claimants and filers that drawback claims must be filed in accordance with all applicable requirements appearing in CBP regulations, the ACE Business Rules and Process Document, and the CBP and Trade Automated Interface Requirements (CATAIR).
Noncompliant drawback claims will be liquidated without the benefit of drawback or reduced as deemed necessary and appropriate upon review by CBP. The claimant may also be subject to penalties pursuant to 19 C.F.R. § 190.62.
Claimants approved for accelerated payment (AP) are advised that noncompliance may be considered “good cause” for revocation of the AP privilege pursuant to 19 C.F.R. § 190.92(f). A claimant may appeal a proposed revocation of the AP privilege in writing and in accordance with the procedure specified in 19 C.F.R. § 190.92(h). Unless appealed, a proposed revocation will take effect in 30 days, as specified in 19 C.F.R. § 190.92(f).
Examples of noncompliance that may be considered “good cause” for revoking a claimant’s AP privilege include but are not limited to:
- Claiming drawback on duties or taxes previously refunded by CBP or another federal agency, for example: duties refunded under CBP’s Automated Commercial Environment (ACE) National Customs Automation Program reconciliation prototype test (reconciliation test) or taxes refunded by the Alcohol and Tobacco Tax and Trade Bureau;
- Claiming drawback on duties assessed under Section 232 of the Trade Expansion Act of 1962;
- Failure to perfect a drawback claim by reducing the refund sum by the amount of any refund separately obtained after the drawback claim was filed;
- Failure to follow the specific filing requirements for 19 U.S.C. § 1313(b) and 19 U.S.C. § 1313(j)(2) substitution claims - for these claim types, claimants must abide by the “lesser of” limitation on the allowable refund, as applicable and as specified in 19 C.F.R § 190.22(a)(1)(ii) for manufacturing drawback claims, and in 19 C.F.R. § 190.32(b) for unused merchandise drawback claims; and
- Failure to submit a complete claim in accordance with the requirements specified in 19 C.F.R. § 190.51.
See 19 C.F.R. § 190 here: https://www.ecfr.gov/current/title-19/chapter-I/part-190.
Additional drawback filing requirements and information pertaining to these requirements can be found at the following links:
Questions regarding this message may be sent to OTDRAWBACK@cbp.dhs.gov.
Related messages: CSMS # 19-000050, 59341925, 51231930
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