CUSTOMS SEEKS COMMENT ON INTERIM DRAWBACK RULING
The U.S. Customs Service is seeking comments on an interim rule the agency has issued on the calculation of manufacturing substitution drawback.
' The rule, issued Wednesday, provides the method by which the duty attributable to a chemical element used in the manufacture of an article that is either exported or destroyed under Customs supervision. The amendment requires a drawback claimant, “where applicable,” to make this apportionment calculation. Customs said comments on the rule must be received by Sept. 23, before it adapts the rule as final.
Recent court decisions have held that a chemical element contained in an imported material that is subject to an ad valorem rate of duty may be designated as the same kind and quality merchandise for drawback purposes. The amendment adds language that explains how to apportion the duty attributable to same kind and quality chemical elements contained in ad valorem duty-paid imported materials for drawback purposes.
The drawback committee of the American Association of Exporters and Importers has contacted Customs to seek additional information on the ruling.
For further information on the ruling, contact William Rosoff, chief of Duty and Refund Determination Branch at Customs’ Office of Regulations and Rulings, (202) 572-8807.