[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: 19CFR191.42]



[Page 550-551]

 

                        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 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 551]]



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]