CBP will begin processing refunds for some substitution drawback claims involving internal revenue taxes, after the Court of International Trade on May 15 denied the government’s motion to stay its recent decision invalidating portions of CBP’s drawback regulations, pending an appeal to the Federal Circuit.
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.
CBP issued the following releases on commercial trade and related matters:
International Trade Today is providing readers with some of the top stories for April 27 - May 1 in case they were missed.
CBP issued the following releases on commercial trade and related matters:
CBP issued the following releases on commercial trade and related matters:
The Customs Rulings Online Search System (CROSS) was updated on April 29. The following headquarters rulings not involving carriers were modified on April 29, according to CBP:
The following lawsuits were filed at the Court of International Trade during the week of April 20-26:
The Department of Justice on April 17 filed an appeal of the Court of International Trade's decision that struck down CBP regulations to prohibit drawback claims for excise taxes. The appeal, which was docketed by the U.S. Court of Appeals for the Federal Circuit on April 24, seeks to restore the agency's ban on substitution drawback on products that must pay excise taxes, such as alcohol and petroleum. The regulations deemed exportation without payment of excise taxes to be a form of drawback, and limited the amount of drawback to the amount of taxes paid (and not previously refunded) on the export that forms the basis for the drawback claim.
Drawback filers have a new option for drawback claims involving manufacturing component parts, CBP said in a general ruling that was included in the April 22 Customs Bulletin. The ruling follows broad changes to drawback included in the Trade Facilitation and Trade Enforcement Act, CBP said. The agency said it recently received an industry request to remove some pre-TFTEA requirements included in the General Manufacturing Drawback Ruling from 1981.
Correction: CBP released its April 22 Customs Bulletin (Vol. 54, No. 15), which includes the two following ruling actions (see 2004230005):