With CBP regulations on new drawback procedures still not issued, software developers are growing concerned about whether they will be ready for the new system’s upcoming deployment in ACE. CBP has pledged to have capabilities in place for the new Trade Facilitation and Trade Enforcement Act drawback provisions on Feb. 24, but though the agency has found funding and begun its own programming efforts, software developers have been unable to start coding, leaving little time for testing before the deadline, several developers said in interviews.
CBP on Sept. 29 posted draft Customs and Trade Automated Interface Requirements (CATAIR) guidelines for drawback procedures under the Trade Facilitation and Trade Enforcement Act of 2016, it said in a message. The draft CATAIR is meant “to facilitate preparations for programming in advance of the forthcoming rulemaking,” CBP said. “The reader should be advised that this technical document is considered a DRAFT and is subject to revision before a final version is provided. Any decisions a reader makes based on this draft document are taken voluntarily and with the understanding that the draft may be revised,” it said.
A Porsche 911 imported from Canada but returned as faulty does not qualify for rejected or unused merchandise drawback because it lacks the required documentation and was used, CBP said in a Sept. 14 ruling. The importer did not provide sufficient proof that the sports car was defective, did not provide adequate notice of re-exportation to the port, and drove the vehicle before returning it, CBP said in ruling HQ H289069.
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CBP properly rejected a drawback claim due to an incomplete filing despite assurances from the filer that the requisite paperwork was actually included, the agency said in a June 12 ruling, HQ H275551. Argents Express Group protested CBP's initial rejection of the drawback claim in 2014 due to the lack of a "coding sheet" that is required for paper drawback claims. Despite subsequent efforts to provide the necessary items, CBP said Argents didn't meet the requirements for a drawback claim filing.
International Trade Today is providing readers with some of the top stories for Aug. 7-11 in case they were missed.
Customs brokerages, law firms, and other members of the trade community are angling to secure eligibility of distilled spirits for substitution drawback under new regulations set to take effect Feb. 24, industry sources said in recent interviews. On that date, simplified substitution drawback enacted through the Trade Facilitation and Trade Enforcement Act will take effect, generally enabling substitution drawback to cover imports and exports with the same eight-digit HTS or Schedule B number. But questions surround whether CBP will deem distilled spirit exports eligible for substitution, due to the agency’s historical drawback treatment regarding alcohol-related excise taxes and technical classifications of U.S. production facilities.
CBP will use several phases to deploy post-release capabilities in ACE, CBP said 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," CBP said. CBP previously planned to deploy all the post-release capabilities on July 8 but delayed the deployment after further testing was deemed necessary (see 1706270049).
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.
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.