Several drawback filers and importers on March 23 filed a court challenge of CBP’s new policies on drawback procedures under the Trade Facilitation and Trade Enforcement Act. They say CBP violated the Administrative Procedure Act when it changed drawback requirements via a guidance document issued in February without allowing for notice and comment on what amount to regulatory changes.
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 release on commercial trade and related matters:
CBP issued the following release on commercial trade and related matters:
CBP issued the following release on commercial trade and related matters:
CBP may face a legal challenge of its decision not to allow accelerated payment on drawback claims filed under the Trade Facilitation and Trade Enforcement Act until it issues its TFTEA drawback regulations (see 1801260036), said a customs lawyer and a drawback consultant speaking during the International Trade Update conference on March 9 in Washington.
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CBP issued the following releases on commercial trade and related matters:
CBP updated its ACE Entry Summary business rules and processes document to reflect the changes to drawback related to the Trade Facilitation and Trade Enforcement Act (see 1802260057). The drawback section of the document was "completely revised with draft material to ensure that filers are aware of the implemented" TFTEA changes, CBP said.
CBP will now allow 30 days for drawback filers to submit supporting documentation for “mixed use” claims for Trade Facilitation and Trade Enforcement Act drawback on entries previously claimed for “core” drawback, it said in a CSMS message. “Revised language updates the interim policy document” issued by CBP in early February on TFTEA drawback (see 1802120020) “to allow filers to submit [Document Image System (DIS)] uploads for mixed-use claims within 30-days from the time the filer receives the mixed-use informational message in ACE,” CBP said.
CBP issued the following releases on commercial trade and related matters: