INDUSTRY REACTS TO CUSTOMS PROPOSAL TO SHUT DOWN DRAWBACK CENTERS
The U.S. Customs Service's proposal to close drawback centers in Miami, New Orleans and Boston would have only a minor impact for industry and shippers filing for duty drawback, industry representatives said.
“This is not really going to affect us; most of the claims are filed in New York,” said William Hagedorn, vice president of Comstock & Theakston Inc. “Now that brokers have national permits, they can file from any place.”
Customs posted a notice Aug. 20 proposing shutting down those three sites in an effort to consolidate its drawback problem. Comments from the public must be received by Sept. 20.
Frank McCarthy, president of Frank McCarthy and Associates, a drawback compliance specialist, said Customs had considered closing these sites earlier. McCarthy predicts that the greatest impact would be on Customs personnel who would relocate in the consolidation process.'
Drawback is a refund of customs duties paid on imported materials that are exported or used in the manufacture of exported articles.
McCarthy said it is likely there would be few protests from industry on closing down one of the sites — Boston in particular — unless there is pressure from industry to keep the center open. Otherwise, Boston’s closing is “a done deal,” he said.
McCarthy, who is also chairman of the drawback committee of the National Customs Brokers and Forwarders Association of America, said his group is drafting comments for submission to the agency.
For further information, contact Sherry Hoffman of Customs at (202) 927-0300.