[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: 19CFR191.42]

[Page 549-550]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 191--DRAWBACK--Table of Contents
 
                     Subpart D--Rejected Merchandise
 
Sec. 191.42  Procedure.

    (a) Return to Customs custody. The claimant must return the 
merchandise to Customs custody within 3 years after the date the 
merchandise was originally released from Customs custody. Drawback will 
be denied on merchandise returned to Customs custody after the statutory 
3-year time period or exported or destroyed without return to Customs 
custody.
    (b) Required documentation. The claimant shall submit documentation 
to the drawback office as part of the drawback claim to establish that 
the merchandise did not conform to sample or specification, was shipped 
without the consent of the consignee, or was defective as of the time of 
importation. If the claimant was not the importer, the claimant must:
    (1) Submit a statement signed by the importer and every other 
person, other than the ultimate purchaser, that owned the goods that no 
other claim for drawback was made on the goods by any other person; and
    (2) Certify that records are available to support the statement 
required in paragraph (b)(1) of this section.
    (c) Notice. A notice of intent to export or destroy merchandise 
which may be the subject of a rejected merchandise drawback claim (19 
U.S.C. 1313(c)) must be provided to the Customs Service to give Customs 
the opportunity to examine the merchandise. The claimant, or the 
exporter (for destruction, see Sec. 191.44), must file at the port of 
intended redelivery to Customs custody a Notice of Intent to Export, 
Destroy, or Return Merchandise for Purposes of Drawback on Customs Form 
7553 at least 5 working days prior to the date of intended return to 
Customs custody. Waiver of prior notice for exportations under 19 U.S.C. 
1313(j) (see Sec. 191.91 of this part) is inapplicable to exportations 
under 19 U.S.C. 1313(c).
    (d) Required Information. The notice shall provide the bill of 
lading number, if known, the name and telephone number, mailing address, 
and, if available, fax number and e-mail address of a contact person, 
and the location of the merchandise.
    (e) Decision to waive examination. Within two (2) working days after 
receipt of the Notice of Intent to Export,

[[Page 550]]

Destroy, or Return Merchandise for Purposes of Drawback (see paragraph 
(c) of this section), Customs will notify, in writing, the party 
designated on the Notice of Customs decision to either examine the 
merchandise to be exported or destroyed, or to waive examination. If 
Customs timely notifies the designated party, in writing, of its 
decision to examine the merchandise (see paragraph (f) of this section), 
but the merchandise is exported or destroyed without having been 
presented to Customs for such examination, any drawback claim, or part 
thereof, based on the Notice of Intent to Export, Destroy, or Return 
Merchandise for Purposes of Drawback, shall be denied. If Customs 
notifies the designated party, in writing, of its decision to waive 
examination of the merchandise, or, if timely notification of a decision 
by Customs to examine or to waive examination is absent, the merchandise 
may be exported or destroyed without delay and shall be deemed to have 
been returned to Customs custody.
    (f) Time and place of examination. If Customs gives timely notice of 
its decision to examine the merchandise to be exported or destroyed, the 
merchandise to be examined shall be promptly presented to Customs. 
Customs shall examine the merchandise within five (5) working days after 
presentation of the merchandise. The merchandise may be exported or 
destroyed without examination if Customs fails to timely examine the 
merchandise after presentation to Customs, and in such case the 
merchandise shall be deemed to have been returned to Customs custody. If 
the examination is completed at a port other than the port of actual 
exportation or destruction, the merchandise shall be transported in-bond 
to the port of exportation or destruction.
    (g) Extent of examination. The appropriate Customs office may permit 
release of merchandise without examination, or may examine, to the 
extent determined to be necessary, the items exported or destroyed.
    (h) Drawback claim. When filing the drawback claim, the drawback 
claimant must correctly calculate the amount of drawback due (see 
Sec. 191.51(b) of this part). The procedures for restructuring a claim 
(see Sec. 191.53 of this part) shall apply to rejected merchandise 
drawback if the claimant has an ongoing export program which qualifies 
for this type of drawback.
    (i) Exportation. The claimant shall export the merchandise and shall 
provide documentary evidence of exportation (see subpart G of this 
part). The claimant may establish exportation by mail as set out in 
Sec. 191.74 of this part.

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