March 2016 DUTY DRAWBACK

Transcription

1 March 2016 DUTY DRAWBACK

2 Outline P.L Trade Facilitation & Trade Enforcement Act Section 906 Drawback Simplification Bill Post Liquidation Review Drawback Compliance Measurement ACE Drawback Programming Oil Spill Tax President s Budget & Extension Reconciliation Entries

3 TRADE SUPPORT NETWORK DRAWBACK COMMITTEE Concepts for New Drawback Statute to Match ACE System (all concepts below are subject to change) Substitution for manufacturing or unused will be at the 8-digit HTSUS level - Ad Valorem duty categories to utilize value - Specific duty categories to utilize unit of measure Time Frames - Import to claim filing period 5 years - Timing sequence Drawback Claimant Concept Bridge Development for HTSUS Changes Legislative Vehicle

4 Non Manufacturing Merchandise Drawback USC 1313(j)(1) Direct ID - A refund of duties, taxes, and fees on specifically identifying an export with its import using serial number, lot number, or accounting methodology (FIFO) (same product) USC 1313 (j)(2) Substitution - A refund of duties, taxes, and fees on imported merchandise that is commercially interchangeable with the exported merchandise Commercially Interchangeable = Same 8 digit classification. ( other exception) 5 Years Import Export File Claim 4

5 5 Substitution Matching Exports to Imports Example: Undenatured Ethanol Old Way New Way Caution FTAs eliminated substitution under 1313(j) and (p) on bulk exports to Canada, Mexico and Chile

6 19 USC 1313(p) Substitution of Finished Petroleum Derivatives 6 1. Basis for substitution / commercial interchangeability Specified HTS headings Done at the 8 digit level 2000 HTSUS or current 2. Different time frames

7 2000 HTSUS 7

8 HTSUS Different 8 digits

9 19 USC 1313(p) - Substitution Unused Drawback of Finished Petroleum Products 5 Years Standard J claims Import Export File Claim 180 days 5 Years P claims Import Export File Claim 9

10 Manufacturing Drawback 19 USC 1313 (a & b) - A refund of duties, taxes and fees paid on imported merchandise based upon the production and export of articles in this country from imported, duty-paid feedstocks (e.g., crude oil) or similar ( same kind and quality ) domestic feedstocks, which are substituted for the imported input/feedstock. - Same Kind and Quality = Same 8 digit classification 5 Years Import Production Export File Claim 10

11 New Drawback Law: Other Items 1. Evidence of Transfers Business Records - Certificates of Delivery eliminated 1. Proof of Exportation AES 2. Filing of Drawback claims Submitted Electronically 3. New Joint & Several Liability provision 4. Export Values and Crude costs are now needed 11

12 New Drawback Law: Other Items 6. Possible modification of FTZ operations Reduction in Direct or Bonded Exports 7. New drawback law is effective as of February 24, However, we do have a two (2) year phase in to file claims. Timing impact on Manufacturing Claims 8. Regulations needed on 19 U.S.C. 1313(l) Calculation of Drawback 12

13 1313(l)(2) Calculation of Drawback for Unused Merchandise 1313(J) (i) in the case of an article that is exported, the amount of the refund shall be equal to 99 percent of the lesser of (I) the amount of duties, taxes, and fees paid with respect to the imported merchandise; or (II) the amount of duties, taxes, and fees that would apply to the exported article if the exported article were imported; 13

14 1313(l) (2) Calculation of Drawback For Manufacturing Drawback (i) in the case of an article that is exported, the amount of the refund shall be equal to 99 percent of the lesser of (I) the amount of duties, taxes, and fees paid with respect to the imported merchandise; or (II) the amount of duties, taxes, and fees that would apply to the substituted merchandise if the substituted merchandise were imported; 14

15 1313(l) (2) Calculation of Drawback (D) EXCEPTIONS. The calculations set forth in subparagraphs (B) and (C) shall not apply to claims for wine based on subsection (j)(2) and claims based on subsection (p) and instead (ii) for any drawback claim based on subsection (p), the amount of the refund shall be subject to the limitations set out in paragraph (4) of that subsection and without regard to subparagraph (B)(i), (B)(ii), (C)(i), or (C)(ii). 15

16 1313(p) Substitution of Petroleum Products (4) Limitation on drawback. The amount of drawback payable under this subsection shall not exceed the amount of drawback that would be attributable to the article- (A) manufactured or produced under subsection (a) or (b) by the manufacturer or producer described in clause (i) or (ii) of paragraph (2)(A), or (B) imported under clause (iii) or (iv) of paragraph (2)(A) had the claim qualified for drawback under subsection (j). 16

17 Outline P.L Trade Facilitation & Trade Enforcement Act Section 906 Drawback Simplification Bill Post Liquidation Review Drawback Compliance Measurement ACE Drawback Programming Oil Spill Tax President s Budget & Extension Reconciliation Entries 17