CBP Considers Closing its Los Angeles Drawback Center
During the August 7, 2008 meeting of the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC), CBP officials sought COAC's input on the possibility of closing the Los Angeles Drawback Center.
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CBP notes that the Los Angeles Drawback Center is a candidate for closure because it has the fewest claims of any of CBP's Drawback Centers and its closure would be consistent with CBP's overall plan for regional Drawback Centers (north, south, east, and west).
If CBP decides to close the Los Angeles Drawback Center, there would be four drawback centers remaining: New York/Newark, Chicago, Houston, and San Francisco.
At the August 7, 2008 COAC meeting, COAC members did not object to CBP's proposal to close the Los Angeles Drawback Center.
Closure Would Not Reduce the Number of CBP Drawback Specialists
CBP officials stated that CBP will ensure that the closure of the Los Angeles Drawback Center will not affect the total number of drawback specialists on staff and the one or two drawback specialists in Los Angeles will be transferred to the San Francisco Drawback Center.
Next Step is Congressional Notification, Rulemaking
CBP states that the next step in the process is to notify Congress. CBP sources note that they are in the process of this congressional notification. Once the congressional notification is complete, CBP will issue a proposed rule with a 30-day comment period, followed by a final rule.
(In 2001, CBP did an internal evaluation of the drawback program and submitted a proposal to Congress to close four of its drawback centers - Boston, Miami, New Orleans, and San Francisco. Congress recommended keeping the San Francisco Drawback Center open, and CBP concurred. The Boston and Miami Drawback Centers closed on July 23, 2003 and the New Orleans Drawback Center closed on February 24, 2003.
See ITT's Online Archives or 01/27/03 news, 03012715, for BP summary of CBP's final rule on the closure of the Boston, Miami, and New Orleans Drawback Centers.
See ITT's Online Archives or 07/21/03 news, 03072110, for BP summary of CBP's ABI administrative message reminding the trade of the closure of the Boston and Miami drawback centers.)
See ITT's Online Archives or 08/19/08 news, 08081999 1, for BP summary of Los Angeles CBP Bulletin on San Francisco Drawback Center's assisting the Los Angeles Drawback Center with the processing of drawback claim liquidations.)