Background

U.S. Customs and Border Protection has issued a reminder to drawback claimants and filers of the consequences of filing claims that are not in compliance with applicable requirements in the CBP regulations, the ACE Business Rules and Process Document, and the CBP and Trade Automated Interface Requirements.

For example, CBP states, non-compliant claims will be liquidated without the benefit of drawback, or reduced as deemed necessary and appropriate, and claimants in such cases may be subject to penalties under 19 CFR 190.62.

In addition, non-compliance may be considered good cause for revocation of approval for accelerated payment. According to CBP, examples of non-compliance that may be considered good cause for such revocation include the following.

- claiming drawback on duties or taxes previously refunded by CBP or another federal agency (e.g., duties refunded under the reconciliation test)

- claiming drawback on Section 232 duties

- failing to perfect a drawback claim by reducing the refund sum by the amount of any refund separately obtained after the claim was filed

- failing to follow the specific filing requirements for 19 USC 1313(b) and 1313(j)(2) substitution claims

- failing to submit a complete claim in accordance with the requirements specified in 19 CFR 190.51

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