CBP, Treasury Issue Final Rule on Certain Drawback for MPFs Based on Substitution of Finished Petroleum Derivatives
U.S. Customs and Border Protection (CBP) and the Treasury Department have issued a final rule, effective November 8, 2004, to amend 19 CFR Part 191 to indicate that merchandise processing fees (MPFs) are eligible to be claimed, in limited circumstances, as drawback based on substitution of finished petroleum derivatives (SFPD) under 19 USC 1313(p).
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According to CBP, the changes implemented by this final rule are consistent with a 1999 Court of Appeals for the Federal Circuit (CAFC) ruling, Texport Oil v. U.S., that MPFs are eligible to be claimed as unused merchandise drawback under 19 USC 1313(j). CBP states that Texport is applicable to SFPD in limited circumstances, as 19 USC 1313(p)(4)(B) limits the amount of SFPD drawback to the amount that would be attributable to the articlehad the claim qualified for unused merchandise drawback under 19 USC 1313(j).
MPFs May Be Claimed as Drawback Based on SFPD in Limited Circumstances of No Manufacture, Etc.
This final rule adds a new paragraph (c) to 19 CFR 191.171 to indicate that MPFs are only eligible for drawback based on SFPD in accordance with the terms of 19 CFR 191.171(b)(1).
- CFR 191.171(b)(1) allows drawback based on SFPD under 19 USC 1313(p) only in cases where there is no manufacture, upon exportation of the imported article, an article of the same kind and quality, or any combination thereof.
(This final rule also makes certain conforming changes to 19 CFR 191.3(a)(4), 19 CFR 191.3(b)(2), and 19 CFR 191.51(b)(2) in order to reflect new 19 CFR 191.171(c).)
(See ITT's Online Archives or 10/08/03 news, 03100815, for BP summary of the proposed rule.)
CBP contact - William Rosoff (202) 572-8807
CBP final rule (CBP Dec. 04-33, FR Pub 10/07/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-22599.pdf