Changes to U.S. CBP drawback regulations | KPMG | GLOBAL
close
Share with your friends

Proposed rules: Changes to U.S. CBP drawback regulations

Changes to U.S. CBP drawback regulations

U.S. Customs and Border Protection (CBP) and the U.S. Treasury Department today jointly issued for publication in the Federal Register a notice of proposed rulemaking to amend the regulations to implement changes to the drawback regulations pursuant to changes made by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA).

1000

Related content

The proposed regulations [PDF 1.4 MB] (105 pages) establish a new process for drawback pursuant to TFTEA that, according to the preamble:

  • Liberalizes the merchandise substitution standard
  • Simplifies recordkeeping requirements
  • Extends and standardizes timelines for filing drawback claims
  • Requires the electronic filing of drawback claims

Drawback is the refund of certain duties, internal revenue taxes, and certain fees collected upon the importation of goods. Drawback refunds are only allowed upon the exportation or destruction of goods under CBP supervision.

The proposed rules further:

  • Explain how drawback claims filed during the transition period will work, and discuss interim policy guidance procedures for filing claims prior to these regulations becoming final
  • Propose changes about bonds, regarding joint and several liability for the importer of the goods and the drawback claimant, and technical corrections and conforming changes to CBP regulations
  • Propose to clarify the prohibition on the filing of a substitution drawback claim for federal excise tax paid on imported merchandise in situations when no excise tax was paid upon the substituted merchandise; or the substituted merchandise is the subject of a different claim for refund or drawback of tax under any provision of the Internal Revenue Code

The purpose of this report is to provide text of the 444-page notice of proposed rulemaking.

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner, Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

Andy Siciliano
Partner, National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117 
E: rwaldrop@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

John L. McLoughlin
Principal, East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal, WNT
T: 212-954-3094
E: labad@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit