CBP released a revised schedule for deploying post-release capabilities in ACE in a July 27 CSMS message. The agency will separate out the collections functionalities and "deploy the other post release capabilities of ACE core using a phased approach," said CBP.
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.
Customs brokerage Thomas Ferramosca Associates recently sent a letter to House lawmakers calling for legislation to allow firms to claim drawback on duty-liable imported goods withdrawn from foreign-trade zones for direct export. In a July 18 letter to Ways and Means Chairman Kevin Brady, R-Texas, and to the congressman representing the Staten Island, New York, brokerage’s district, Rep. Dan Donovan (R), Tom Ferramosca Jr. said that allowing for direct export qualifications could be an “enticement” for companies to produce and export more from the U.S., in part because “the more that’s exported, the more that can be claimed against merchandise sold in the U.S. with potential duty liability.” If allowed drawback benefits, FTZ goods classified as “privileged foreign” or “non-privileged foreign” provide “the greatest opportunities” to boost U.S. manufacturing, expand exports and stimulate job growth, the letter says.
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The Treasury Department published an updated 2017 regulatory agenda for CBP (here) that mentions several new rulemakings that weren't included in the last update (see 1611180003). The agenda includes a newly mentioned proposal for updates and modifications to the (a)(1)(A) list of records required for the entry of merchandise (here). That list is included within the appendix to 19 CFR Part 163 (here). CBP seeks to publish the proposal in October, according to the agenda.
The House Appropriations Committee on July 18 approved fiscal year 2018 funding legislation for the Department of Homeland Security, which encourages CBP to run a pilot for the Fish and Wildlife Service ACE message set “as soon as is feasible,” according to the bill’s committee report (here). “Providing a centralized online access point to connect CBP, the trade community, and partner government agencies will enhance government data collection for international trade transactions while expediting cargo processing and protecting against prohibited shipments,” the report says. The Fish and Wildlife Service suspended its ACE import and export pilots earlier this year following complaints from the trade (see 1701190011)
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A tuna importer’s request for drawback should be rejected because the importer exported the tuna from a different port, yet didn’t file required documentation to transport the tuna between ports under bond, CBP said in a recent ruling (here). For merchandise transported in-bond before export, Form 7512 or its electronic equivalent is part of the proof of exportation required on drawback claims, CBP said in ruling HQ H284687.
CBP issued the following releases on commercial trade and related matters:
CBP released notices about the delay to mandatory use of ACE for drawback and duty deferral entries and entry summaries (here), as well as changes to reconciliation and post-summary corrections and periodic monthly statements (here). All are "delayed until further notice," CBP said. The notices don't include any information about the delay beyond what CBP already announced this week (see 1706270049).
CBP's latest delay to the deployment of post-release capabilities in ACE (see 1706270049) again leaves timing unclear for the new requirements. The agency said in a June 27 CSMS message (here) that it would delay plans to deploy drawback, reconciliation and duty deferral entries and entry summaries on July 8. CBP decided on the delay after it found "areas specific to collections that are in need of further testing before these capabilities can be deployed." CBP is working on a new schedule and will again provide 30-days' notice before deploying the capabilities, it said.