Importing into the United States - Indo-American Chamber Of ...

interested parties have the opportunity to
request a review of the order with respect to
individual producers or resellers covered by
the order. The period of review is usually the
12 months preceding the anniversary month.
However, the first review period also includes
any term prior to the normal 12-month period
for which the suspension of liquidation was
directed. If no review is requested, Commerce
will direct Customs to collect deposits and
assess duties in the amount of the cash or bond
rate in effect on the date of entry and to continue
to require deposits at that rate for future
entries. If a review is requested, Commerce carries
out a review similar to its original investigation
and issues revised rates for assessment
and deposits. Upon receipt of instructions from
the Commerce Department, Customs will collect
duties and liquidate entries as directed.
26. DRAWBACK—REFUNDS OF DUTIES
DEFINITION AND PURPOSE
The term drawback refers to a refund of
99 percent of the duties or taxes collected on
imported merchandise because certain legal or
regulatory requirements have been met. To
qualify for drawback, an importation of merchandise
and subsequent exportation or
destruction of merchandise must occur. The
purpose of the drawback program is to assist
American importers, manufacturers and
exporters to compete in international markets
by allowing them to obtain refunds of duties
paid on imported merchandise.
THREE TYPES OF DRAWBACK
There are three primary types of drawback—manufacturing
drawback, unused-merchandise
drawback and rejected-merchandise
drawback:
■
Manufacturing drawback is a refund of
duties paid on imported merchandise
used in the manufacture of articles that are
either exported or destroyed. The
imported merchandise must be used in
manufacture and exported within five
years from the date of importation of the
merchandise. An approved drawback
ruling (formerly called a drawback contract)
must be on file with Customs before
any manufacturing drawback claims are
filed.
■
Unused-merchandise drawback is a
refund of duties paid on imported merchandise
that is exported or destroyed
without undergoing manufacture, and is
never used in the United States. The
imported merchandise must be exported
within three years from the date of importation
of the merchandise.
■ Rejected-merchandise drawback is a
refund of duties on imported merchandise
that is exported because it did not conform
to sample or specifications, or was
shipped without the consent of the consignee.
Merchandise must be returned to
Customs custody within three years of the
date of its importation in order to qualify
for this type of drawback. Rejected merchandise
must be exported and cannot be
destroyed in lieu of such exportation.
These drawback claims involve a refund
of 99 percent of the duties that were paid upon
importation. The drawback regulations may be
found in Part 191 of the Customs Regulations.
Questions about drawback should be
addressed to:
Chief, Drawback Unit
Office of Field Operations
U.S. Customs Service
1300 Pennsylvania Avenue NW
Washington, DC 20229
IMPORTING INTO THE UNITED STATES
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