[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR191.2]



[Page 522-525]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 191_DRAWBACK--Table of Contents

 

                      Subpart A_General Provisions

 

Sec.  191.2  Definitions.



    For the purposes of this part:

    (a) Abstract. Abstract means the summary of the actual production 

records of the manufacturer.

    (b) Act. Act, unless indicated otherwise, means the Tariff Act of 

1930, as amended.

    (c) Certificate of delivery. Certificate of delivery (see Sec.  

191.10 of this part) means Customs Form 7552, Delivery Certificate for 

Purposes of Drawback, summarizing information contained in original 

documents, establishing:

    (1) The transfer from one party (transferor) to another (transferee) 

of:

    (i) Imported merchandise;

    (ii) Substituted merchandise under 19 U.S.C. 1313(j)(2);

    (iii) A qualified article under 19 U.S.C. 1313(p)(2)(A)(ii) from the 

manufacturer or producer to the exporter or under 1313(p)(2)(A)(iv) from 

the importer to the exporter; or

    (iv) Drawback product;

    (2) The identity of such merchandise or article as being that to 

which a potential right to drawback exists; and

    (3) The assignment of drawback rights for the merchandise or article 

transferred from the transferor to the transferee.

    (d) Certificate of manufacture and delivery. Certificate of 

manufacture and delivery (see Sec.  191.24 of this part) means Customs 

Form 7552, Delivery Certificate for Purposes of Drawback, summarizing 

information contained in original documents, establishing:

    (1) The transfer of an article manufactured or processed under 19 

U.S.C. 1313(a) or 1313(b) from one party (transferor) to another 

(transferee);

    (2) The identity of such article as being that to which a potential 

right to drawback exists; and

    (3) The assignment of drawback rights for the article transferred 

from the transferor to the transferee.

    (e) Commercially interchangeable merchandise. Commercially 

interchangeable merchandise means merchandise which may be substituted 

under the substitution unused merchandise drawback law, Sec.  313(j)(2) 

of the Act, as amended (19 U.S.C. 1313(j)(2)) (see Sec.  191.32(b)(2) 

and (c) of this part), or under the provision for the substitution of 

finished petroleum derivatives, Sec.  313(p), as amended (19 U.S.C. 

1313(p)).



[[Page 523]]



    (f) Designated merchandise. Designated merchandise means either 

eligible imported duty-paid merchandise or drawback products selected by 

the drawback claimant as the basis for a drawback claim under 19 U.S.C. 

1313(b) or (j)(2), as applicable, or qualified articles selected by the 

claimant as the basis for drawback under 19 U.S.C. 1313(p).

    (g) Destruction. Destruction means the complete destruction of 

articles or merchandise to the extent that they have no commercial 

value.

    (h) Direct identification drawback. Direct identification drawback 

means drawback authorized either under Sec.  313(a) of the Act, as 

amended (19 U.S.C. 1313(a)), on imported merchandise used to manufacture 

or produce an article which is either exported or destroyed, or under 

Sec.  313(j)(1) of the Act, as amended (19 U.S.C. 1313(j)(1)), on 

imported merchandise exported, or destroyed under Customs supervision, 

without having been used in the United States (see also Sec. Sec.  

313(c), (e), (f), (g), (h), and (q)). Merchandise or articles may be 

identified for purposes of direct identification drawback by use of the 

accounting methods provided for in Sec.  191.14 of this subpart.

    (i) Drawback. Drawback means the refund or remission, in whole or in 

part, of a customs duty, fee or internal revenue tax which was imposed 

on imported merchandise under Federal law because of its importation, 

and the refund of internal revenue taxes paid on domestic alcohol as 

prescribed in 19 U.S.C. 1313(d) (see also Sec.  191.3 of this subpart).

    (j) Drawback claim. Drawback claim means the drawback entry and 

related documents required by regulation which together constitute the 

request for drawback payment.

    (k) Drawback entry. Drawback entry means the document containing a 

description of, and other required information concerning, the exported 

or destroyed article on which drawback is claimed. Drawback entries are 

filed on Customs Form 7551.

    (l) Drawback product. A drawback product means a finished or 

partially finished product manufactured in the United States under the 

procedures in this part for manufacturing drawback. A drawback product 

may be exported, or destroyed under Customs supervision with a claim for 

drawback, or it may be used in the further manufacture of other drawback 

products by manufacturers or producers operating under the procedures in 

this part for manufacturing drawback, in which case drawback would be 

claimed upon exportation or destruction of the ultimate product. 

Products manufactured or produced from substituted merchandise (imported 

or domestic) also become ``drawback products'' when applicable 

substitution provisions of the Act are met. For purposes of Sec.  313(b) 

of the Act, as amended (19 U.S.C. 1313(b)), drawback products may be 

designated as the basis for drawback or deemed to be substituted 

merchandise (see Sec.  1313(b)). For a drawback product to be designated 

as the basis for drawback, the product must be associated with a 

certificate of manufacture and delivery (see Sec.  191.24 of this part).

    (m) Exportation; exporter--(1) Exportation. Exportation means the 

severance of goods from the mass of goods belonging to this country, 

with the intention of uniting them with the mass of goods belonging to 

some foreign country. An exportation may be deemed to have occurred when 

goods subject to drawback are admitted into a foreign trade zone in 

zone-restricted status, or are laden upon qualifying aircraft or vessels 

as aircraft or vessel supplies in accordance with Sec.  309(b) of the 

Act, as amended (19 U.S.C. 1309(b)) (see Sec. Sec.  10.59 through 10.65 

of this chapter).

    (2) Exporter. Exporter means that person who, as the principal party 

in interest in the export transaction, has the power and responsibility 

for determining and controlling the sending of the items out of the 

United States. In the case of ``deemed exportations'' (see paragraph 

(m)(1) of this section), the exporter means that person who, as the 

principal party in interest in the transaction deemed to be an 

exportation, has the power and responsibility for determining and 

controlling the transaction (in the case of aircraft or vessel supplies 

under 19 U.S.C. 1309(b), the party who has the power and responsibility 

for lading the vessel supplies on the qualifying aircraft or vessel).



[[Page 524]]



    (n) Filing. Filing means the delivery to Customs of any document or 

documentation, as provided for in this part, and includes electronic 

delivery of any such document or documentation.

    (o) Fungible merchandise or articles. Fungible merchandise or 

articles means merchandise or articles which for commercial purposes are 

identical and interchangeable in all situations.

    (p) General manufacturing drawback ruling. A general manufacturing 

drawback ruling means a description of a manufacturing or production 

operation for drawback and the regulatory requirements and 

interpretations applicable to that operation (see Sec.  191.7 of this 

subpart).

    (q) Manufacture or production. Manufacture or production means:

    (1) A process, including, but not limited to, an assembly, by which 

merchandise is made into a new and different article having a 

distinctive ``name, character or use''; or

    (2) A process, including, but not limited to, an assembly, by which 

merchandise is made fit for a particular use even though it does not 

meet the requirements of paragraph (q)(1) of this section.

    (r) Multiple products. Multiple products mean two or more products 

produced concurrently by a manufacture or production operation or 

operations.

    (s) Possession. Possession, for purposes of substitution unused 

merchandise drawback (19 U.S.C. 1313(j)(2)), means physical or 

operational control of the merchandise, including ownership while in 

bailment, in leased facilities, in transit to, or in any other manner 

under the operational control of, the party claiming drawback.

    (t) Records. Records include, but are not limited to, statements, 

declarations, documents and electronically generated or machine readable 

data which pertain to the filing of a drawback claim or to the 

information contained in the records required by Chapter 4 of Title 19, 

United States Code, in connection with the filing of a drawback claim 

and which are normally kept in the ordinary course of business (see 19 

U.S.C. 1508).

    (u) Relative value. Relative value means, except for purposes of 

Sec.  191.51(b), the value of a product divided by the total value of 

all products which are necessarily manufactured or produced concurrently 

in the same operation. Relative value is based on the market value, or 

other value approved by Customs, of each such product determined as of 

the time it is first separated in the manufacturing or production 

process. Market value is generally measured by the selling price, not 

including any packaging, transportation, or other identifiable costs, 

which accrue after the product itself is processed. Drawback law 

requires the apportionment of drawback to each such product based on its 

relative value at the time of separation.

    (v) Schedule. A schedule means a document filed by a drawback 

claimant, under Sec.  313(a) or (b), as amended (19 U.S.C. 1313(a) or 

(b)), showing the quantity of imported or substituted merchandise used 

in or appearing in each article exported or destroyed for drawback.

    (w) Specific manufacturing drawback ruling. A specific manufacturing 

drawback ruling means a letter of approval issued by Customs 

Headquarters in response to an application, by a manufacturer or 

producer for a ruling on a specific manufacturing or production 

operation for drawback, as described in the format used. Synopses of 

approved specific manufacturing drawback rulings are published in the 

Customs Bulletin with each synopsis being published under an identifying 

Treasury Decision. Specific manufacturing drawback rulings are subject 

to the provisions in part 177 of this chapter.

    (x) Substituted merchandise or articles. Substituted merchandise or 

articles means merchandise or articles that may be substituted under 19 

U.S.C. 1313(b), 1313(j)(2), or 1313(p) as follows:

    (1) Under Sec.  1313(b), substituted merchandise must be of the same 

kind and quality as the imported designated merchandise or drawback 

product, that is, the imported designated merchandise or drawback 

products and the substituted merchandise must be capable of being used 

interchangeably in the manufacture or production of the exported or 

destroyed articles with no substantial change in the manufacturing or 

production process;



[[Page 525]]



    (2) Under Sec.  1313(j)(2), substituted merchandise must be 

commercially interchangeable with the imported designated merchandise; 

and

    (3) Under Sec.  1313(p), a substituted article must be of the same 

kind and quality as the qualified article for which it is substituted, 

that is, the articles must be commercially interchangeable or described 

in the same 8-digit HTSUS tariff classification.

    (y) Verification. Verification means the examination of any and all 

records, maintained by the claimant, or any party involved in the 

drawback process, which are required by the appropriate Customs officer 

to render a meaningful recommendation concerning the drawback claimant's 

conformity to the law and regulations and the determination of 

supportability, correctness, and validity of the specific claim or 

groups of claims being verified.



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

amended by T.D. 01-18, 66 FR 9649, Feb. 9, 2001]