The Court of International Trade has ruled to move to trial a case involving BP Oil Supply Company's challenge against a U.S. Customs and Border Protection denial of BP protests claiming substitution drawback on unused merchandise. The CIT ruled that a jury could return a verdict on dispute over facts surrounding the commercial interchangeability and prior use of the merchandise for which BP sought drawback.
Drawback
A duty drawback is a refund by CBP of the duties, taxes, or fees paid on imported goods, which were imposed upon importation as prescribed in 19 U.S.C. 1313(d). More broadly, a drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law.
U.S. Customs and Border Protection has issued a new document entitled “Guidance on Entry Deletion and Entry or Entry Summary Cancellation” in order to provide uniform national procedures for requesting such actions in ACS and ACE, and for requesting entry substitutions for EIP/RLF and at land border ports. The Guidance includes a deletion/cancellation worksheet and also discusses liquidated damages.
U.S. Customs and Border Protection has posted an overview of the Trade Support Network (TSN) and frequently asked questions on how the TSN provides business input to CBP on modernization issues. TSN committees provide information relating to specific business processes to CBP, including Automated Commercial Environment (ACE) requirement recommendations. These committees are formed and disbanded in parallel with the stages of ACE development. Many of the committees have also formed subcommittees to concentrate expertise in a specific area, such as drawback, bonds, Foreign Trade Zones, etc. (The TSN will be meeting on September 22-23, 2011.)
At the National Customs Brokers and Forwarders Association of America’s Government Affairs Conference on September 19, 2011, representatives from U.S. Customs and Border Protection and NCBFAA’s Customs Committee discussed the “Role of the Broker,” including the possibility of requiring continuing education for all licensed customs brokers and an experience requirement for permit holders. A larger role for brokers in trusted trade programs is also being contemplated, etc.
The Court of International Trade has ruled against Toyota1 and denied its request to resubmit claims for NAFTA duty drawback on entries of unused automobile service parts imported into the U.S. and later exported to Canada. The CIT found Toyota's drawback methods failed to calculate the average inventory turnover period on a part-specific basis and would have resulted in Toyota receiving drawback for parts imported more than three years before being exported. The CIT also ruled that Customs was not responsible for Toyota's untimely drawback claims and amendments.
In the past, when the GSP program expired for non-AGOA countries and had been retroactively renewed, CBP had stated that ABI filers who continued to use the GSP SPIs (A or A+) during the expiration period would not need to take any further action to request a refund (as filing with a GSP SPI during the expired period constituted a valid claim for a refund).
U.S. Customs and Border Protection has posted a notice announcing that the next customs broker license exam will be held on Monday, October 3, 2011.
Broker Power is providing readers with some of the top stories for July 25-29, 2011 in case they were missed last week.
In June 2011, CBP, the Trade Leadership Council and the Trade Support Network discussed key "action items" for developing ACE, including the plan for turning off ACS, the upcoming Document Imaging System pilot, the visibility problem with Post Summary Corrections for prior filers, and using ACE for export licensing and reports.
U.S. Customs and Border Protection is seeking additional comments on extending the use of three existing drawback forms, CBP Forms 7551, 7552, and 7553 as approved government information collections. CBP plans to request Office of Management and Budget (OMB) review and approval of these forms without change.