[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR24.36]

[Page 370-373]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE--Table of Contents
 
Sec. 24.36  Refunds of excessive duties, taxes, etc.

    (a) When it is found upon, or prior to, liquidation or reliquidation 
of an entry or reconciliation that a refund of excessive duties, taxes, 
fees or interest (at the rate determined in accordance with 
Sec. 24.3a(c)(1)) is due, a refund shall be prepared in the name of the 
person to whom the refund is due, as determined under paragraphs (b) and 
(c) of this section. If an authority to mail checks to someone other 
than the payee, Customs Form 4811, is on file, the address of the payee 
shall be shown as in care of the address of the authorized persons. If a 
power of attorney is on file, the address of the payee may be shown as 
in care of the address of such attorney, if requested. A Form 4811 
received by Customs will not be effective if a Customs transaction 
requiring the use of the owner's importer number has not been made 
within 3 years from the date the Form 4811 was filed or if there is no 
unliquidated entry on file to which such number is to be associated. For 
purposes of this section:
    (1) Except as otherwise provided in paragraphs (a)(1)(i) through 
(a)(1)(iii) of this section, the refund shall include interest on the 
excess moneys deposited with Customs, and such interest shall accrue 
from the date the duties, taxes, fees or interest were deposited or, in 
a case in which a proper claim is filed under 19 U.S.C. 1520(d) and 
subpart D of Part 181 of this chapter, from the date such claim is 
filed, to the date of liquidation or reliquidation of the applicable 
entry or reconciliation. An example follows:

    Example: Entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.005
    

Importer is owed a refund of $600 plus interest as follows:
The importer makes a $1,000 initial deposit (January 1) and the entry 
liquidates for $400 (December 1). Upon liquidation, the importer will be 
owed a refund of $600 plus interest. The interest will accrue from the 
date of deposit (January 1) to the date of liquidation (December 1).

    (i) If an additional deposit of duties, taxes, fees or interest was 
made prior to liquidation or reliquidation and if any portion of that 
additional deposit was in excess of the amount required to be deposited, 
in addition to any other interest accrued under this paragraph (a)(1), 
the refund also shall include interest accrued on the excess additional 
deposit from the date of the additional deposit to the date of 
liquidation or reliquidation of the applicable entry or reconciliation. 
An example follows:

    Example: Additional deposit made and entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.006
    

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Importer is owed a refund of $900 plus interest as follows:
The importer makes a $1,000 initial deposit (January 1) and an 
additional pre-liquidation deposit of $200 (May 1) and the entry 
liquidates for $300 (December 1). Upon liquidation, the importer will be 
refunded $900 plus interest. The interest accrues in two segments: (1) 
On the additional deposit overpayment ($200), from the date of the 
additional deposit (May 1) to the date of liquidation (December 1); and 
(2) on the initial deposit overpayment ($700), from the date of deposit 
(January 1) to the date of liquidation (December 1).

    (ii) In the case of a refund of duties, taxes, fees or interest made 
prior to liquidation, such a refund will include only principal amounts 
and not any interest thereon. Interest on such principal amounts will be 
computed at the time of liquidation or reliquidation and shall accrue as 
follows:
    (A) Interest shall only accrue on the amount refunded from the date 
the duties, taxes, fees or interest were deposited to the date of the 
refund if the amount refunded is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to constitute 
the true excess amount deposited with Customs. An example follows:

    Example: Pre-liquidation refund and entry liquidates for net amount 
collected
[GRAPHIC] [TIFF OMITTED] TR20OC99.007


Importer is owed a refund of interest on $200 as follows:
The importer makes a $1,000 initial deposit (January 1) and receives a 
pre-liquidation refund of $200 (May 1) and the entry liquidates for $800 
(December 1). Upon liquidation, the importer will be refunded interest 
on the $200 overpayment from the date of the initial deposit (January 1) 
to the date of the pre-liquidation refund (May 1).

    (B) If the amount refunded is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to constitute 
less than the true excess amount deposited with Customs, in addition to 
any other interest accrued under this paragraph (a)(1), interest also 
shall accrue on the remaining excess deposit from the date the duties, 
taxes, fees or interest were deposited to the date of liquidation or 
reliquidation. An example follows:

    Example: Pre-liquidation refund and entry liquidates for an 
additional refund
[GRAPHIC] [TIFF OMITTED] TR20OC99.008


Importer is owed a refund of $700 plus interest as follows:
The importer makes a $1,000 initial deposit (January 1) and receives a 
pre-liquidation refund of $200 (May 1) and the entry liquidates for $100 
(December 1). Upon liquidation, the importer will be refunded $700 plus 
interest. The interest accrues in two segments: (1) On the pre-
liquidation refund ($200), from the date of deposit (January 1) to the 
date of the pre-liquidation refund (May 1); and (2) on the remaining 
overpayment ($700), from the date of deposit (January 1) to the date of 
liquidation (December 1).

    (C) If an entry or reconciliation is determined upon liquidation or 
reliquidation to involve both an initial underpayment and an additional 
excess deposit, interest in each case shall be

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computed separately and the resulting amounts shall be netted for 
purposes of determining the final amount of interest to be reflected in 
the refund. An example follows:

    Example: Additional deposit made and entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.009
    

Importer is owed a refund of $200 plus or minus net interest as follows:
The importer makes a $1,000 initial deposit on the required date 
(January 1) and an additional pre-liquidation deposit of $300 (May 1) 
and the entry liquidates for $1,100 (December 1). Upon liquidation, the 
importer will be refunded $200 plus or minus net interest. The interest 
accrues in two segments: (1) Interest accrues in favor of the Government 
on the initial underpayment ($100) from the date deposit was required 
(January 1) to the date of the additional deposit (May 1); and (2) 
interest accrues in favor of the importer on the overpayment ($200) from 
the date of the additional deposit (May 1) to the date of liquidation 
(December 1).

    (D) If the amount refunded or any portion thereof exceeds the amount 
properly refundable as determined upon liquidation or reliquidation of 
the applicable entry or reliquidation, the excess amount refunded shall 
be treated as an underpayment of duties, taxes, fees or interest on 
which interest shall accrue as provided in Sec. 24.3a.
    (2) A refund determined to be due upon liquidation or reliquidation, 
including a refund consisting only of interest that has accrued in 
accordance with paragraph (a)(1)(ii) of this section, shall be paid 
within 30 days of the date of liquidation or reliquidation of the 
applicable entry or reconciliation.
    (3) If a refund, including any interest thereon, is not paid in full 
within the applicable 30-day period specified in paragraph (a)(2) of 
this section, the refund shall be considered delinquent thereafter and 
interest shall accrue on the unpaid balance by 30-day periods until the 
full balance is paid. However, no interest will accrue during the 30-day 
period in which the refund is paid.
    (b) Refunds of excessive duties, taxes, fees or interest shall be 
certified for payment to the importer of record unless a transferee of 
the right to withdraw merchandise from bonded warehouse is entitled to 
receive the refund under section 557(b), Tariff Act of 1930, as amended, 
or an owner's declaration has been filed in accordance with section 
485(d), Tariff Act of 1930, or a surety submits evidence of payment to 
Customs, upon default of the principal, of amounts previously determined 
to be due on the same entry or transaction. The certification of a 
refund for payment to a nominal consignee may be made prior to the 
expiration of the 90-day period within which an owner's declaration may 
be filed as prescribed in section 485(d) of the Tariff Act, provided the 
nominal consignee waives in writing his right to file such declaration. 
If an owner's declaration has been duly filed, the refund shall be 
certified for payment to the actual owner who executed the declaration, 
except that, irrespective of whether an owner's declaration has been 
filed, refunds shall be certified for payment to a transferee provided 
for in section 557(b), Tariff Act of 1930, as amended, if the moneys 
with respect to which the refund was allowed were paid by such 
transferee. If a surety submits evidence of payment to Customs, upon 
default of the principal, for an amount previously determined to be due 
on an entry or transaction the refund shall be certified to that surety 
up to the amount paid by it or shall be applied to other obligations of 
the surety.
    (c) If the nominal consignee has become bankrupt, refunds of duties, 
taxes, fees or interest on merchandise entered in the name of such 
nominal consignee for the account of the actual owner shall be withheld 
from payment pending the receipt of a claim therefor and the 
establishment of rights thereto, unless the declaration of the actual

[[Page 373]]

owner has been filed with the port director under section 485(d), Tariff 
Act of 1930.
    (d) The authority of port directors to make refunds pursuant to 
paragraphs (a), (b), and (c) of this section of excessive deposits of 
alcohol or tobacco taxes, as defined in section 6423(e)(1), Internal 
Revenue Code of 1954 (26 U.S.C. 6423(e)(1)), is confined to cases of the 
types which are excepted from the application of section 6423, Internal 
Revenue Code of 1954 (26 U.S.C. 6423). The excepted types of cases and, 
therefore, the types in which the port director is authorized to make 
refunds of such taxes are those in which:
    (1) The tax was paid or collected on an article imported for the 
personal or household use of the importer;
    (2) The refund is made pursuant to provisions of laws and 
regulations for drawback;
    (3) The tax was paid or collected on an imported article withdrawn 
from the market, returned to bond, or lost or destroyed, when any law 
expressly provides for refund in such case;
    (4) The tax was paid or collected on an imported article which has 
been lost, where a suit or proceeding was instituted before June 15, 
1957;
    (5) The refund of tax is pursuant to a claim based solely on errors 
of computation of the quantity of the imported article, or on 
mathematical errors in computation of the tax due;
    (6) The tax was paid or collected on an imported article seized and 
forfeited, or destroyed, as contraband;
    (7) The tax was paid or collected on an imported article refused 
admission to Customs territory and exported or destroyed in accordance 
with section 558, Tariff Act of 1930, as amended;
    (8) The refund of tax is pursuant to a reliquidation of an entry 
under section 520(c)(1), Tariff Act of 1930, as amended, and does not 
involve a rate of tax applicable to an imported article; or
    (9) The tax was paid or collected on a greater quantity of imported 
articles than that actually imported and the fact of the deficiency is 
established to the port directors' satisfaction before liquidation of 
the entry becomes final.
    (e) In any instance in which a refund of an alcohol or tobacco tax 
is not of a type covered by paragraph (d) of this section the following 
procedure shall apply:
    (1) The port director shall issue a notice of refund for duty only 
and shall place the following statement on the notice of refund issued 
for duty: ``Claim or refund of any overpayment of internal revenue tax 
on this entry must be executed and filed with the assistant regional 
commissioner (alcohol, tobacco and firearms) of the internal revenue 
region in which the claimant is located, in accordance with internal 
revenue regulations (Title 26 of the Code of Federal Regulations).'' On 
request of the claimant, the port director shall issue a certified 
statement on Customs letterhead identifying the entry, showing the 
amount of internal revenue tax deposited with respect to each entry for 
which a claim on internal revenue Form 843 is to be made, and showing 
the date of issuance of the notice of refund of duty.
    (2) The claim shall be executed on internal revenue Form 843 
(original only) which may be procured from offices of the Internal 
Revenue Service and shall be filed with the assistant regional 
commissioner (alcohol, tobacco and firearms) of the internal revenue 
region in which the claimant is located. The certified statement shall 
be attached to and filed in support of such claim which may include 
refunds under more than one entry but shall be limited to refunds under 
entries filed at the same port and the same internal revenue region. The 
data to be shown on the claim shall be as prescribed in internal revenue 
regulations, with the exception that any data on the certified statement 
also required to be shown in the claim need not be restated in the 
claim.
    (3) The date of allowance of refund or credit in respect of such tax 
for the purposes of section 6407, Internal Revenue Code of 1954 (26 
U.S.C. 6407) shall be that date on which a claim is perfected and the 
refund is authorized for scheduling under the applicable internal 
revenue regulations.

[28 FR 14808, Dec. 31, 1963, as amended by T.D. 67-33, 32 FR 494, Jan. 
18, 1967; T.D. 71-289, 36 FR 23150, Dec. 4, 1971; T.D. 89-1, 53 FR 
51254, Dec. 21, 1988; T.D. 99-27, 64 FR 13675, Mar. 22, 1999; T.D. 99-
75, 64 FR 56439, Oct. 20, 1999]

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