Rep. Grimm Asks CBP to Revise Definition of 'Exporter' for Drawback

CBP should consider a U.S. seller an exporter if the sale is an export, regardless of who arranges the export transportation, said Rep. Michael Grimm, R-N.Y., in comments to the CBP Advisory Committee on Commercial Operations (COAC) export subcommittee. CBP has previously cited that definition in its administrative rulings, said Grimm.

CBP should use the same definition for drawback purposes, he said in his comments. "It has come to my attention that CBP chooses not to apply this definition to exports in drawback situations," he said. Instead, for drawback purposes, an exporter is defined as the foreign buyer who arranges the export transportation, he said. That interpretation hurts U.S. seller because it is very difficult "to obtain waivers from foreign buyers in order to claim drawback," he said. "This appears to be counterintuitive to the very purpose of drawback itself, which is to stimulate exports by allowing U.S. sellers to remove the cost of import duty from the sale price and better compete in the international marketplace," said Grimm.