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Drawback

A duty drawback is a refund by CBP of the duties, taxes, or fees paid on imported goods, which were imposed upon importation. More broadly, a drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law. CBP's duty drawback scheme under the Customs Act of 1962 allows exporters to receive a refund on customs duties they paid on imported products that are then used or incorporated into other products for export or remain unused until importation.

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Federal Circuit Affirms CIT Rejection of Excise Tax Drawback Regulations
August 23, 2021 by Jacob Kopnick|Penalties and Courts

CBP cannot limit the amount of drawback that can be claimed on excise taxes, the U.S. Court of Appeals for the Federal Circuit said in an Aug. 23 opinion upholding the Court of International Trade's ruling. Holding that the CBP regulation defied the "clear intent of Congress," the appellate court ruled against the government appeal of CIT's decision, providing a win for the plaintiffs, the National Association of Manufacturers and The Beer Institute.

Topics:Customs duty, Court of International Trade, Drawback
CAFC Affirms CIT Rejection of Excise Tax Drawback Regulations
August 23, 2021 |Bulletin

The U.S. Court of Appeals for the Federal Circuit agreed with the Court of International Trade's rejection of CBP regulations that limit the amount of drawback that can be claimed on excise taxes, the CAFC said in a ruling. "We conclude that the expansive definition in the Rule, which extends drawback to situations in which tax is never paid or determined, conflicts with the unambiguous text of the statute," said the CAFC.

Topics:Customs duty, Court of International Trade, Drawback
CBP Revises Guidance on Subheading for US Goods Returned
August 23, 2021 by Tim Warren|Top News

CBP provided some more detail on the requirements of importers and brokers for duty-free claims under subheading 9801.00.10, in a recent CSMS message. The update revises a guidance issued by CBP in 2017 on legislative changes that allowed for duty-free treatment of products of the U.S. returned within any time frame after having been exported, or products of other countries returned within three years after having been exported, and not advanced in value or improved in condition (see 1702010047). CBP said it plans to propose regulatory changes to "align" the regulations with the law.

Topics:Drawback
CBP Moves Drawback Operations from Ports to Centers
August 16, 2021 |Customs

The Centers of Excellence and Expertise, rather than the ports of entry, will be home to the drawback program and specialists, CBP said Aug. 13. Effective Aug. 15, “the four drawback offices will be managed out of five Centers and each Center will manage two industries,” the agency said. The change won't result in changes “to the processing of claims, transmission of claims, and submission of ruling and privilege application requests,” it said. CBP previously said it was looking to make the change by the end of September (see 2105050011).

Topics:Drawback