[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: 19CFR191.23]



[Page 540-541]

 

                        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 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



[[Page 541]]



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 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]