| Title: | SPECIAL DRAWBACK PROCEDURES |
|---|---|
| Date: | 1998-06-16 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LYNN ZZ-RODRIGUEZ
SUBJECT : SPECIAL DRAWBACK PROCEDURES
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: SPECIAL DRAWBACK PROCEDURES - ACCELERATED PAYMENT AND
WAIVER OF PRIOR NOTICE
PASS TO: DRAWBACK CHIEFS AND DRAWBACK SPECIALISTS
TREASURY DECISION 98-16 DATED MARCH 5, 1998, REVISED THE CUSTOMS
REGULATIONS FOR DRAWBACK, PART 191. SUBPART I OF THE REVISED
DRAWBACK REGULATIONS ESTABLISHED UNIFORM POLICY AND INSTRUCTION
FOR BOTH CUSTOMS AND THE TRADE TO FOLLOW FOR APPLICATIONS FOR
ACCELERATED PAYMENT AND WAIVER OF PRIOR NOTICE. THE REGULATIONS
PROVIDE SPECIFIC INSTRUCTIONS TO BE USED BY THE TRADE TO APPLY
FOR SPECIAL PROCEDURES AND CUSTOMS SUBSEQUENT ACTION FOR
PROCESSING THESE SPECIAL PROCEDURES.
CURRENT APPROVALS OF ACCELERATED PAYMENT AND WAIVER OF PRIOR
NOTICE SHALL REMAIN IN EFFECT FOR ONE YEAR AFTER THE APRIL 6,
1998, EFFECTIVE DATE OF THE NEW REGULATIONS. HOWEVER, ALL
DRAWBACK CLAIMANTS MUST REAPPLY FOR THESE SPECIAL PROCEDURES
UNDER THE NEW COMPREHENSIVE REQUIREMENTS OUTLINED IN THE
REGULATIONS (19 CFR 191.91 AND 191.92). THE REAPPLICATIONS MUST
BE SUBMITTED TO CUSTOMS PRIOR TO APRIL 6, 1999, OR THE PREVIOUSLY
APPROVED PROCEDURES WILL TERMINATE. IF REAPPLICATIONS FOR THESE
SPECIAL PROCEDURES ARE RECEIVED TIMELY, THE DRAWBACK CLAIMANTS
MAY CONTINUE USING ACCELERATED PAYMENT OR WAIVER OF PRIOR NOTICE
UNLESS CUSTOMS DENIES THE REAPPLICATION.
ALL APPLICATIONS FOR WAIVER OF PRIOR NOTICE WILL NOW BE
PROSPECTIVE IN NATURE. AS OF APRIL 6, 1998, RETROACTIVE WAIVER
OF PRIOR NOTICE IS ELIMINATED. A ONE-TIME OPPORTUNITY IS
PROVIDED FOR THOSE DRAWBACK CLAIMS FOR WHICH PRIOR NOTICE OF
EXPORTATION WAS NOT GIVEN TO CUSTOMS. THIS ONE-TIME OPPORTUNITY
IS SUBJECT TO CONDITIONS SIMILAR TO THOSE FOR THE NEW APPLICATION
PROCESS FOR THE WAIVER OF PRIOR NOTICE PROCEDURE. THE NEW
REGULATIONS ALSO INTRODUCE A "STAY" ^19 CFR 191.91(D)| FOR WAIVER
OF PRIOR NOTICE OF INTENT TO EXPORT.
OUTLINED BELOW ARE SPECIFICS FOR EACH SPECIAL PROCEDURE.
ACCELERATED PAYMENT
ACCELERATED PAYMENT OF DRAWBACK CLAIMS IS AVAILABLE FOR DRAWBACK
CLAIMS UNDER THE MANUFACTURING, REJECTED, OR UNUSED MERCHANDISE
LAW, AS WELL AS CLAIMS UNDER THE LAW FOR SUBSTITUTION OF FINISHED
PETROLEUM DERIVATIVES. PERSONS WISHING TO APPLY MUST FILE A
WRITTEN APPLICATION WITH THE DRAWBACK OFFICE WHERE CLAIMS WILL BE
FILED. ALL NEWLY APPROVED SPECIAL PROCEDURES ARE NATIONAL IN
SCOPE.
INFORMATION NEEDED FOR REVIEW TO GRANT ACCELERATED PAYMENT MUST
INCLUDE SUFFICIENT INFORMATION ABOUT THE APPLICANT AND ITS
DRAWBACK PROGRAM, INCLUDING SPECIFIC INFORMATION ABOUT THE BOND
COVERAGE THAT THE APPLICANT INTENDS TO USE TO COVER ACCELERATED
PAYMENT OF DRAWBACK, TO PROVIDE CUSTOMS REASONABLE ASSURANCE
AGAINST LOSSES TO THE REVENUE WHEN ACCELERATED PAYMENTS OF
DRAWBACK ARE MADE. THE REGULATIONS ALSO REQUIRE A CERTIFICATION
BY THE APPLICANT THAT ALL APPLICABLE STATUTORY AND REGULATORY
REQUIREMENTS FOR DRAWBACK WILL BE MET AND A DESCRIPTION (WITH
SAMPLE DOCUMENTS) OF HOW THE APPLICANT WILL ENSURE COMPLIANCE
WITH THESE REQUIREMENTS. THE APPLICATION MUST CONTAIN, AT A
MINIMUM, THE REQUIRED INFORMATION AS OUTLINED IN PART 191.92
(B)(1) AND (B)(2).
CUSTOMS WILL REVIEW AND VERIFY THE INFORMATION SUBMITTED IN AND
WITH THE APPLICATIONS. CUSTOMS WILL NOTIFY THE APPLICANTS, IN
WRITING, WITHIN 90 DAYS OF THE RECEIPT OF THE APPLICATION OF ITS
DECISION TO APPROVE OR DENY, OR ITS INABILITY TO APPROVE, DENY OR
ACT ON THE APPLICATION AND THE REASON WHY. THE APPROVAL OR
DENIAL WILL BE BASED ON THE SUBMITTED INFORMATION (AND ANY
ADDITIONAL INFORMATION REQUESTED) AND THE APPLICANT'S OVERALL
RECORD OF TRANSACTIONS WITH CUSTOMS. THE EFFECTIVE DATE FOR THE
APPROVAL SHALL BE THE DATE OF CUSTOMS WRITTEN NOTIFICATION. IF
THE APPROVED ACCELERATED PAYMENT IS TO ALSO BE USED FOR CLAIMS
FILED BEFORE THE EFFECTIVE DATE, IT SHALL BE PAID ONLY IF THE
CLAIMANT FURNISHES A SINGLE TRANSACTION BOND COVERING EACH
AFFECTED CLAIM. IF THE APPLICATION IS DENIED, REASONS FOR
DENIALS WILL INCLUDE WHAT CORRECTIVE ACTIONS MUST BE TAKEN BY THE
DRAWBACK CLAIMANT FOR SUBSEQUENT APPROVAL. REAPPLICATION FOR THE
SPECIAL PROCEDURE CANNOT BE MADE UNTIL THE REASON(S) FOR THE
DENIAL IS RESOLVED.
CUSTOMS MAY PROPOSE TO REVOKE THE APPROVAL OF A SPECIAL PROCEDURE
FOR GOOD CAUSE. ALL REVOCATIONS MUST BE IN WRITING AND MUST
SPECIFY THE REASONS FOR THE PROPOSED ACTION AND THE PROCEDURES
FOR APPEAL. THE REVOCATION SHALL TAKE EFFECT 30 DAYS AFTER THE
DATE OF THE PROPOSED REVOCATION IF NOT TIMELY APPEALED TO THE
APPROPRIATE DRAWBACK OFFICE OR CUSTOMS HEADQUARTERS.
ALL ACCELERATED PAYMENTS OF DRAWBACK CLAIMS WILL BE CERTIFIED FOR
PAYMENT WITHIN 3 WEEKS AFTER FILING, IF THE DRAWBACK CLAIMS ARE
FILED ELECTRONICALLY. THOSE CLAIMS FILED MANUALLY WILL BE
CERTIFIED FOR PAYMENT WITHIN 3 MONTHS AFTER FILING.
WAIVER OF PRIOR NOTICE
WAIVER OF PRIOR NOTICE OF INTENT TO EXPORT FOR DRAWBACK CLAIMS IS
AVAILABLE FOR DRAWBACK CLAIMS UNDER THE UNUSED MERCHANDISE LAW
^1313(J)|. A CLAIMANT MUST FILE A WRITTEN APPLICATION WITH THE
DRAWBACK OFFICE WHERE CLAIMS WILL BE FILED. WAIVERS OF PRIOR
NOTICE ARE NATIONAL IN SCOPE AND PROSPECTIVE IN NATURE.
INFORMATION NEEDED FOR REVIEW TO GRANT WAIVER OF PRIOR NOTICE
MUST INCLUDE SUFFICIENT INFORMATION ABOUT THE APPLICANT AND ITS
DRAWBACK PROGRAM, INCLUDING SPECIFIC INFORMATION ABOUT THE
COMMODITY/PRODUCT LINES OF BOTH THE IMPORTED AND THE EXPORTED
MERCHANDISE COVERED BY THE APPLICATION. THE REGULATIONS INCLUDE
CERTIFICATION BY THE APPLICANT THAT ALL APPLICABLE STATUTORY AND
REGULATORY REQUIREMENTS FOR DRAWBACK WILL BE MET AND A
DESCRIPTION (WITH SAMPLE DOCUMENTS) OF HOW THE APPLICANT WILL
ENSURE COMPLIANCE WITH THESE REQUIREMENTS. THE APPLICATION MUST
CONTAIN, AT A MINIMUM, THE REQUIRED INFORMATION AS OUTLINED IN
PART 191.91(B)(2) AND (B)(3).
PART 191.36 ALLOWS A DRAWBACK CLAIMANT A ONE TIME OPPORTUNITY TO
FILE DRAWBACK IF THEY FAIL TO FILE NOTICE OF INTENT TO EXPORT,
DESTROY, OR RETURN MERCHANDISE FOR PURPOSES OF DRAWBACK. CERTAIN
CONDITIONS MUST BE MET TO QUALIFY AS OUTLINED IN PART 191.36
(A)(1)(2) AND (3) AND MUST BE SUBMITTED IN WRITING TO THE
DRAWBACK OFFICE WHERE THE DRAWBACK CLAIMS WILL BE FILED.
CUSTOMS WILL REVIEW AND VERIFY THE INFORMATION SUBMITTED IN AND
WITH THE APPLICATIONS. CUSTOMS WILL NOTIFY THE APPLICANT, IN
WRITING, WITHIN 90 DAYS OF THE RECEIPT OF THE APPLICATION OF ITS
DECISION TO APPROVE OR DENY, OR ITS INABILITY TO APPROVE, DENY OR
ACT ON THE APPLICATION AND THE REASON WHY. THE APPROVAL OR
DENIAL WILL BE BASED ON THE SUBMITTED INFORMATION (AND ANY
ADDITIONAL INFORMATION REQUESTED) AND THE APPLICANT'S OVERALL
RECORD OF TRANSACTIONS WITH CUSTOMS. THE APPROVAL OF AN
APPLICATION FOR WAIVER OF PRIOR NOTICE OF INTENT TO EXPORT, UNDER
THIS SECTION, SHALL OPERATE PROSPECTIVELY AND APPLY ONLY TO THOSE
EXPORT SHIPMENTS OCCURRING AFTER THE DATE OF THE WAIVER.
APPLICANTS MUST CONTINUE TO FILE NOTICES OF INTENT TO EXPORT
(CF7553) UNTIL THE APPLICATION FOR A WAIVER OF PRIOR NOTICE HAS
BEEN APPROVED. DENIALS AND REVOCATIONS ARE SUBJECT TO THE SAME
PROCEDURES AS DESCRIBED ABOVE WITH ACCELERATED PAYMENT.
WAIVER OF PRIOR NOTICE IS SUBJECT TO A "STAY" AS PROVIDED FOR IN
PART 191.91 (D). AN APPROVAL OF WAIVER OF PRIOR NOTICE MAY BE
STAYED, FOR A SPECIFIED REASONABLE PERIOD. THIS WOULD BE DONE
SHOULD CUSTOMS DESIRE TO EXAMINE THE MERCHANDISE BEING EXPORTED
WITH DRAWBACK PRIOR TO ITS EXPORTATION FOR PURPOSES OF
VERIFICATION. CUSTOMS WILL PROVIDE WRITTEN NOTICE, GIVING
SPECIFIC REASONS AND THE LENGTH OF THE STAY TO THE DRAWBACK
CLAIMANT BY CERTIFIED, RETURN RECEIPT MAIL. THE STAY SHALL TAKE
EFFECT 2 WORKING DAYS AFTER THE DATE THE PERSON SIGNS THE RETURN
POST OFFICE RECEIPT FOR THE CERTIFIED, RETURN RECEIPT MAIL. THE "
STAY" SHALL REMAIN IN EFFECT FOR A SPECIFIED PERIOD.
COMBINED APPLICATIONS
AN APPLICANT FOR BOTH ACCELERATED PAYMENT AND WAIVER OF PRIOR
NOTICE AS PROVIDED FOR IN PART 191.91 AND 191.92 OF THE
REGULATIONS, MAY APPLY FOR ONLY ONE PROCEDURE, BOTH PROCEDURES
SEPARATELY OR BOTH PROCEDURES IN ONE APPLICATION PACKAGE (SEE
ALSO 19 CFR 191.95). THE INTENT OF THE DRAWBACK CLAIMANT MUST BE
CLEARLY STATED AND ALL REQUIREMENTS FOR EACH SPECIAL PROCEDURE
MUST BE MET.
RESPONSIBILITIES:
TO ADDRESS REVENUE AND COMPLIANCE REQUIREMENTS OF THE CHIEF
FINANCIAL OFFICERS ACT AS WELL AS TO ENSURE NATIONAL UNIFORMITY
IN DRAWBACK PROCESSING, IT IS THE RESPONSIBILITY OF THE DRAWBACK
CENTERS TO FOLLOW THE PROCEDURES SET FORTH IN THE REGULATIONS AND
MAINTAIN THIS DATA IN THE AUTOMATED COMMERCIAL SYSTEM (ACS). ACS
HAS BEEN PROGRAMMED TO TRACK APPLICATION DATES, APPROVALS AND
REVOCATIONS WITHIN THE DRAWBACK MODULE.
EFFECTIVE IMMEDIATELY, ALL DRAWBACK CENTERS MUST START UTILIZING
THE ACS DRAWBACK MODULE WHEN PROCESSING NEW APPLICATIONS AND RE-
APPLICATIONS FOR ACCELERATED PAYMENT AND WAIVER OF PRIOR NOTICE
PROCEDURES. THIS WILL ENABLE THESE PROCEDURES TO BE MONITORED
NATIONALLY BY THE DRAWBACK CENTERS, ENSURING THE PROPER
PROCESSING AND PAYMENT OF DRAWBACK CLAIMS. EDITS HAVE BEEN
PROGRAMMED INTO THE ACS DRAWBACK MODULE TO PREVENT ERRONEOUS
PAYMENTS OF DRAWBACK. IN ADDITION, IF DRAWBACK CLAIMANTS ARE
GRANTED THE ONE-TIME OPPORTUNITY TO CLAIM DRAWBACK ON MERCHANDISE
WHICH HAS BEEN EXPORTED WITHOUT COMPLYING WITH 19 CFR 191.35(A)
OR 19 CFR 191.91, THIS MUST ALSO BE TRACKED IN THE ACS MODULE FOR
NATIONAL MONITORING PURPOSES.
ACS INSTRUCTIONS FOR USING THE SPECIAL PRIVILEGE PORTION OF THE
ACS DRAWBACK MODULE WILL BE SENT DIRECTLY TO THE EIGHT DRAWBACK
CENTERS. SHOULD YOU HAVE ANY QUESTIONS REGARDING THESE NEW
DRAWBACK REQUIREMENTS, CONTACT MS. LYNN RODRIGUEZ, ENTRY AND
DRAWBACK, HQ, AT (202) 927-1962. SPECIFIC QUESTIONS REGARDING
THE ACS DRAWBACK MODULE SHOULD BE DIRECTED TO MS. MARYANNE
CARNEY, CHIEF, DRAWBACK AND RECORDS BRANCH, NEW YORK, AT
(212) 466-4575.
/S/ LOU SAMENFINK, FOR
ROBERT S. TROTTER