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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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CBP to Deploy Updated Form 5106 on March 16
February 20, 2019 |Customs

CBP will deploy its updated Form 5106 (Create/Update Importer Identity Form) on March 16, CBP said in a Feb. 20 notice. "The legacy Importer Create/Update ABI application (TI) will be disabled at 8:00 pm on Friday, March 15, 2019," CBP said. "Any submissions of the TI after that time will be rejected. During the outage window, the new ACE Importer Create/Update functionality for Trade and CBP users will be deployed to ACE production. Legacy importer accounts will be converted to new ACE as part of the deployment of the 5106 in new ACE. Any new ACE Importer Create/Update submissions (TP) submitted to ACE prior to completion of the deployment will be held in queue and processed once the entire deployment is completed."

Topics:Drawback
CBP Sets Procedures for Filing, 'Perfecting' Drawback Claims for Sections 301 and 201 Duties
February 8, 2019 |Top News

Drawback filers may “effective immediately” submit claims for refunds on Section 301 or Section 201 duties, CBP said in a Feb. 8 CSMS message. Filers will no longer receive error messages related to unit of measure (UOM) mismatches that had been occurring “because the underlying import did not have a UOM associated to a Chapter 99” tariff number or because they had left the mandatory UOM field blank, CBP said.

Topics:Customs duty, Drawback, Section 232 Tariffs
Statutes on Origin Verifications, Penalties for Misclassification Among Necessary Changes for USMCA, USTR Says
January 30, 2019 by Mara Lee|Top News

In order for importers to be able to create certificates of origin under the U.S.-Mexico-Canada Agreement, U.S. law will have to change. That's one of dozens of changes to statutes that will need to happen to accommodate the changes between NAFTA and USMCA. The U.S. trade representative shared the six-page outline of the needed changes with Congress late on Jan. 29, fulfilling one of the steps under fast-track consideration of the trade pact. The document suggests that USTR is still seeking a lowering of U.S. de minimis levels specifically for Canada and Mexico (see 1810190043), since those countries did not raise their de minimis levels as much as the U.S. negotiators wished.

Topics:Customs duty, Drawback, USMCA
CBP Postpones Feb. 9 ACE Deployment
January 29, 2019 |Customs

CBP will postpone the entire ACE deployment that was planned for Feb. 9, due to the partial federal government shutdown, it said in a CSMS message. Government agencies resumed full operation on Jan. 28. The deployment includes "automation of CBP Form 5106, unique identifiers for Centers of Excellence and Expertise," and updates to the Generalized System of Preferences (GSP), CBP said. The agency will send out any updates on the deployment through another CSMS message. CBP previously said it planned to delay deployment of Form 5106 (see 1901170046). CBP also said that the "mandatory filing of drawback claims pursuant to the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) is not impacted by the shutdown and will proceed as planned, regardless of funding status after February 15th. On February 24, 2019, all drawback claims must be filed as TFTEA drawback and must be done so electronically in ACE."

Topics:Drawback, Generalized System of Preferences (GSP)
Drawback Now Allowed on Section 301 Duties, CBP Says; Worst of Shutdown Effects Limited to Seafood
January 23, 2019 by Brian Feito|Top News

CBP is now accepting claims for drawback on Section 301 duties on products from China, said John Leonard, executive director-trade policy and programs, on a conference call held Jan. 23 to discuss issues related to the ongoing federal government shutdown. The agency has fixed a bug in ACE that was preventing Section 301 drawback claims and is now able to begin processing, though the agency’s ability to resolve particular issues will be limited due to staffing issues caused by the ongoing shutdown, he said.

Topics:Customs duty, Drawback