CBP Proposes Rule to Preclude Drawback for Certain Excise Taxes, Add Associated Bond Condition
U.S. Customs and Border Protection has issued a proposed rule to amend 19 CFR to preclude situations where imported merchandise subject to Federal excise tax is allowed into the U.S., in effect, 99 percent free of that tax through application of a drawback claim.
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Specifically, the proposed amendments would preclude the filing of a substitution drawback claim for internal revenue excise tax paid on imported merchandise in situations where no excise tax was paid upon the substituted merchandise or where the substituted merchandise is the subject of a different claim for refund or drawback of tax under any provision of the Internal Revenue Code.
CBP is also proposing to amend 19 CFR by adding a basic importation and entry bond condition to foster compliance with the amended drawback provision.
According to CBP, these proposed amendments are necessary to protect the revenue by clarifying the relationship between drawback claims and Federal excise tax liability.
(See future issue of ITT for detailed summary.)
- Comments are due by November 16, 2009
CBP contact - William Rosoff (202) 325-0047
Proposed rule (to be published in FR on 10/15/09) available at http://www.federalregister.gov/OFRUpload/OFRData/2009-24789_PI.pdf