[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR191.23]

[Page 539-540]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 191--DRAWBACK--Table of Contents
 
                    Subpart B--Manufacturing Drawback
 
Sec. 191.23  Methods of claiming drawback.

    (a) Used in. Drawback may be paid based on the amount of the 
imported or substituted merchandise used in the manufacture of the 
exported article, where there is no waste or the waste is valueless or 
unrecoverable. This method must be used when multiple products also 
necessarily and concurrently result from the manufacturing process, and 
there is no valuable waste (see paragraph (c) of this section).
    (b) Appearing in. Drawback is allowable under this method based only 
on the amount of imported or substituted merchandise that appears in (is 
contained in) the exported articles. This method may not be used if 
there are multiple products also necessarily and concurrently resulting 
from the manufacturing process.
    (c) Used in less valuable waste. Drawback is allowable under this 
method based on the quantity of merchandise or drawback products used to 
manufacture the exported or destroyed article, reduced by an amount 
equal to the quantity of this merchandise that the value of the waste 
would replace. This method must be used when multiple products also 
necessarily and concurrently result from the manufacturing process, and 
there is valuable waste.
    (d) Abstract or schedule. A drawback claimant may use either the 
abstract or schedule method to show the quantity of material used or 
appearing in the exported or destroyed article. An abstract is the 
summary of records which shows the total quantity used in or appearing 
in all articles produced during the period covered by the abstract. A 
schedule shows the quantity of material used in producing, or appearing 
in, each unit of product. Manufacturers or producers submitting letters 
of notification of intent to operate under a general manufacturing 
drawback ruling (see Sec. 191.7) and applicants for approval of specific 
manufacturing drawback rulings (see Sec. 191.8) shall state whether the 
abstract or schedule method is used; if no such statement is made, 
drawback claims must be based upon the abstract method.
    (e) Recordkeeping. (1) Valuable waste. When the waste has a value 
and the drawback claim is not limited to the quantity of imported or 
substituted merchandise or drawback products appearing in the exported 
or destroyed articles claimed for drawback, the manufacturer or producer 
shall keep records to show the market value of the merchandise or 
drawback products used to manufacture or produce the exported or 
destroyed articles, as well as the market value of the resulting waste, 
under the used in less valuable waste method (see Sec. 191.2(u) of this 
part).
    (2) If claim for waste is waived. If claim for waste is waived, only 
the ``appearing in'' basis may be used (see paragraph (b) of this 
section). Waste

[[Page 540]]

records need not be kept unless required to establish the quantity of 
imported duty-paid merchandise or drawback products appearing in the 
exported or destroyed articles claimed for drawback.

[T.D. 98-16, 63 FR 11006, Mar. 5, 1998; 63 FR 15288, Mar. 31, 1998]