CSMS Message: 98-000493

TO : ALL ABI BROKERS.

FROM : LYNN ZZ-RODRIGUEZ

SUBJECT : EXPORTER'S SUMMARY PROCEDURE

DATE : 06/15/98

JUNE 10, 1998

FO:TC:C:E:D AD/MC

TO : PORT DIRECTORS, BOSTON, NEW YORK, MIAMI, CHICAGO,
NEW ORLEANS, HOUSTON, LOS ANGELES, SAN FRANCISCO
ALL INTERESTED PARTIES

FROM : ASSISTANT COMMISSIONER
OFFICE OF FIELD OPERATIONS

SUBJECT: EXPORTER'S SUMMARY PROCEDURE

PASS TO: DRAWBACK CHIEFS AND DRAWBACK SPECIALISTS

TREASURY DECISION 98-16, DATED MARCH 5, 1998, REVISED THE CUSTOMS
REGULATIONS FOR DRAWBACK, PART 191. THE FINAL RULE REVISED THE
REGULATIONS TO IMPLEMENT THE EXTENSIVE AND SIGNIFICANT CHANGES OF
THE DRAWBACK LAW CONTAINED IN THE MOD ACT. ONE OF THE CHANGES
WHICH IMPACTS THE DRAWBACK PROCESS WAS THE ELIMINATION OF THE
EXPORTER'S SUMMARY PROCEDURE (ESP) AS A SPECIAL PRIVILEGE. THE
ESP PROCEDURE MAY NOW BE USED BY ANY CLAIMANT FOR MANUFACTURING,
UNUSED OR REJECTED MERCHANDISE DRAWBACK AS WELL AS FOR DRAWBACK
INVOLVING THE SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.
THIS CHANGE WAS INTENDED TO IMPROVE ADMINISTRATIVE EFFICIENCY FOR
PROCESSING DRAWBACK CLAIMS BY STREAMLINING THE PAPER PROCESS,
THUS ELIMINATING THE NEED FOR CLAIM BY CLAIM REVIEW OF EACH
INDIVIDUAL EXPORT DOCUMENT SUBMITTED IN A POST AUDIT METHOD.
THIS CHANGE IN DOCUMENT REVIEW PROCEDURES IS AN INTEGRAL
COMPONENT FOR PAPERLESS DRAWBACK PROCESSING IN THE FUTURE.

THE EXPORTER SUMMARY PROCEDURE (ESP) CONSISTS OF A CHRONOLOGICAL
SUMMARY OF EXPORTS USED TO SUPPORT A DRAWBACK CLAIM. IT IS
SUBMITTED AS PART OF THE CLAIM IN LIEU OF ACTUAL DOCUMENTARY
EVIDENCE OF EXPORTATION. THE FORMAT USED IS OUTLINED IN PART
191.73(B) OF THE REGULATIONS. IF A CLAIMANT USES THIS SPECIAL
PROCEDURE, THEY ARE REQUIRED TO MAINTAIN THE ACTUAL EVIDENCE OF
EXPORTATION AS DESCRIBED IN 191.72(A) OF THE REGULATIONS AS THE
PRIMARY EVIDENCE OF EXPORT FOR DRAWBACK PURPOSES. CLAIMANTS WHO
USE THIS PROCEDURE WILL NO LONGER BE REQUIRED TO HAVE A
CONTINUOUS CUSTOMS BOND ON FILE SPECIFICALLY FOR ESP SINCE THIS
IS NO LONGER CONSIDERED A SPECIAL PRIVILEGE IN DRAWBACK.

EFFECTIVELY IMMEDIATELY, TO IMPLEMENT BOTH THE REGULATORY CHANGE
AND THE NECESSARY POST AUDIT REVIEW, NATIONAL PROCEDURES ARE
BEING ESTABLISHED TO VERIFY THE ACCURACY AND QUALITY OF THE
CLAIMANT'S EXPORT DOCUMENTATION AND TO ENSURE COMPLIANCE WITHIN
THE DRAWBACK PROGRAM. THESE POST AUDIT VERIFICATIONS WILL ALSO
ADHERE TO THE OFFICE OF THE INSPECTOR GENERAL'S RECOMMENDATIONS
ON MANAGEMENT CONTROLS WITHIN THE DRAWBACK PROGRAM. THEREFORE,
AT LEAST ONCE A YEAR, ALL DRAWBACK SPECIALISTS WILL REVIEW PROOFS
OF EXPORT FOR EACH OF THEIR ASSIGNED CLAIMANTS WHOSE ACCOUNTS USE
THE EXPORTER'S SUMMARY PROCEDURE (ESP). THIS WILL NOT CHANGE THE
CURRENT PROCEDURE TO REVIEW ANY PROOFS OF EXPORT SUBMITTED WITH
INDIVIDUAL DRAWBACK CLAIMS.

FOR ESP CLAIMANTS WHOSE DRAWBACK CLAIMS INCLUDE VARIOUS
EXPORTATIONS, BACKUP PROOFS OF EXPORT MUST BE REVIEWED TO VERIFY
THAT THEY FULLY IDENTIFY THE EXPORTED ARTICLES AND THE FACTS OF
EXPORTATION. THESE EXPORTS MAY ALL BE OBTAINED FROM ONE DRAWBACK
CLAIM. IF THE CLAIM SELECTED FOR REVIEW INVOLVES MORE THAN ONE
MODE OF EXPORT TRANSPORTATION, DRAWBACK SPECIALISTS SHOULD BE
REVIEWING AT LEAST ONE EXPORT DOCUMENT FOR EACH MODE OF
TRANSPORTATION USED. IF THE CLAIMANT FILES BOTH MANUFACTURING
AND UNUSED MERCHANDISE DRAWBACK CLAIMS, IT IS THE RESPONSIBILITY
OF THE DRAWBACK SPECIALIST TO DETERMINE WHETHER TO REVIEW PROOFS
OF EXPORT FOR MORE THAN ONE TYPE OF CLAIM. THIS WOULD DEPEND ON
THE COMPLEXITY OF THE ACCOUNT AND THE DRAWBACK SPECIALIST'S
EXPERIENCE WITH PROCESSING THEIR DRAWBACK CLAIMS.

IT IS RECOMMENDED THAT THIS REVIEW TAKE PLACE WHEN THE DRAWBACK
CLAIMANT BEGINS TO FILE IN YOUR LOCATION AND THEN A PROCEDURE
SHOULD BE IN PLACE TO REVIEW THE CLAIMANT ON A YEARLY BASIS.
EVIDENCE OF EXPORTATION WHICH IS REQUESTED AND SUBMITTED FOR
REVIEW BY CUSTOMS SHOULD BE EXAMINED FOR COMPLIANCE WITH THE
REGULATIONS AND FOR EVIDENCE OF AN AUDIT TRAIL. IF THERE ARE ANY
PROBLEMS WITH THE DOCUMENTATION SUBMITTED, DRAWBACK SHOULD NOT BE
ALLOWED ON THAT COMPANY'S EXPORTS OR DRAWBACK CLAIMS UNTIL THE
DRAWBACK SPECIALIST HAS REVIEWED THEIR EVIDENCE OF EXPORT AND IS
CONFIDENT THAT PAYMENT OF DRAWBACK IS WARRANTED. IF THE CLAIMANT
IS APPROVED FOR ACCELERATED PAYMENT, PAYMENT SHOULD CONTINUE TO
BE AUTHORIZED UNLESS THE PROBLEM IS SERIOUS AND THEN THE PROPER
STEPS SHOULD BE TAKEN TO REVOKE THE ACCELERATED PROCEDURE AS PER
THE REGULATIONS. IF THE CLAIMANT IS APPROVED FOR WAIVER OF PRIOR
NOTICE, A "STAY" OF THAT PROCEDURE SHOULD BE CONSIDERED UNTIL THE
PROBLEMS ARE RESOLVED.

DRAWBACK SPECIALISTS WILL HAVE TO WORK WITH THEIR CLAIMANTS
AND/OR BROKERS TO ENSURE THAT THEY UNDERSTAND THE NEW DRAWBACK
REQUIREMENTS FOR EXPORT DOCUMENTATION AND PROVIDE THE QUALITY OF
DOCUMENTATION REQUIRED TO VALIDATE THEIR CLAIMS FOR DRAWBACK. IT
WILL BE THE DRAWBACK SPECIALIST'S RESPONSIBILITY TO KEEP A RECORD
OF WHICH OF THEIR CLAIMANTS THEY PICK FOR REVIEW, THE
DOCUMENTATION REQUESTED AND WHAT IS SUBMITTED BY THE CLAIMANT.
THIS CAN BE A HARD COPY OF CORRESPONDENCE AND DOCUMENTATION OR A
COMPUTER RECORD. IT IS RECOMMENDED THAT RECORDS INCLUDE THE
DRAWBACK ACCOUNTS REVIEWED, THE DATE OF THE REVIEW, THE DRAWBACK
CLAIM INVOLVED AND THE QUALITY OF THE DOCUMENTATION SUBMITTED.
THIS INFORMATION CAN BE USED AS PART OF THE MANAGEMENT CONTROL
PROGRAM FOR BOTH THE PORT DRAWBACK OFFICE AND FOR THE OFFICE OF
FINANCE'S CFO REVIEWS.

IF YOU HAVE ANY QUESTIONS REGARDING THIS PROCEDURE, PLEASE
CONTACT MS. LYNN RODRIGUEZ, ENTRY AND DRAWBACK, HQ, AT
(202) 927-1962 OR MS. MARYANNE CARNEY, CHIEF, DRAWBACK AND
RECORDS, NEW YORK AT (212) 466-4575.

/S/ LOU SAMENFINK, FOR

ROBERT S. TROTTER