[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: 19CFR191.81]



[Page 558-559]

 

                        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 H_Liquidation and Protest of Drawback Entries

 

Sec.  191.81  Liquidation.





    (a) Time of liquidation. Drawback entries may be liquidated after:

    (1) Liquidation of the import entry becomes final; or

    (2) Deposit of estimated duties on the imported merchandise and 

before liquidation of the import entry.

    (b) Claims based on estimated duties. (1) Drawback may be paid on 

estimated duties if the import entry has not been liquidated, or the 

liquidation has not become final (because of a protest being filed) (see 

also Sec.  173.4(c) of this chapter), and the drawback claimant and any 

other party responsible for the payment of liquidated import duties each 

files a written request for payment of each drawback claim, waiving any 

right to payment or refund under other provisions of law, to the extent 

that the estimated duties on the unliquidated import entry are included 

in the drawback claim for which drawback on estimated duties is 

requested under this paragraph. The drawback claimant shall, to the best 

of its knowledge, identify each import entry that has been protested or 

that is the subject of a request for reliquidation (19 U.S.C. 

1520(c)(1)) and that is included in the drawback claim. A drawback 

entry, once finally liquidated on the basis of estimated duties, shall 

not be adjusted by reason of a subsequent final liquidation of the 

import entry.

    (2) However, if final liquidation of the import entry discloses that 

the total amount of import duty is different from the total estimated 

duties deposited, except in those cases when drawback is 100% of the 

duty, the party responsible for the payment of liquidated duties, as 

applicable, shall:

    (i) Be liable for 1 percent of all increased duties found to be due 

on that portion of merchandise recorded on the drawback entry; or

    (ii) Be entitled to a refund of 1 percent of all excess duties found 

to be paid on that portion of the merchandise recorded on the drawback 

entry.

    (c) Claims based on voluntary tenders or other payments of duties--

(1) General. Subject to the requirements in paragraph (c)(2) of this 

section, drawback may be paid on voluntary tenders of the unpaid amount 

of lawful ordinary Customs duties or any other payment of lawful 

ordinary Customs duties for an entry, or withdrawal from warehouse, for 

consumption (see Sec.  191.3(a)(1)(iii) of this part), provided that:

    (i) The tender or payment is specifically identified as duty on a 

specifically identified entry, or withdrawal from warehouse, for 

consumption;

    (ii) Liquidation of the specifically identified entry, or withdrawal 

from warehouse, for consumption became final prior to such tender or 

payment; and

    (iii) Liquidation of the drawback entry in which that specifically 

identified import entry, or withdrawal from warehouse, for consumption 

is designated has not become final.

    (2) Written request and waiver. Drawback may be paid on claims based 

on voluntary tenders or other payments of duties under this subsection 

only if the drawback claimant and any other party responsible for the 

payment of the voluntary tenders or other payments of duties each files 

a written request for payment of each drawback claim based on such 

voluntary tenders



[[Page 559]]



or other payments of duties, waiving any claim to payment or refund 

under other provisions of law, to the extent that the voluntary tenders 

or other payment of duties under this paragraph are included in the 

drawback claim for which drawback on the voluntary tenders or other 

payment of duties is requested under this paragraph.

    (d) Claims based on liquidated duties. Drawback shall be based on 

the final liquidated duties paid that have been made final by operation 

of law (except in the case of the written request for payment of 

drawback on the basis of estimated duties, voluntary tender of duties, 

and other payments of duty, and waiver, provided for in paragraphs (b) 

and (c) of this section).

    (e) Liquidation procedure. When the drawback claim has been 

completed by the filing of the entry and other required documents, and 

exportation (or destruction) of the articles has been established, the 

drawback office shall determine drawback due on the basis of the 

complete drawback claim, the applicable general manufacturing drawback 

ruling or specific manufacturing drawback ruling, and any other relevant 

evidence or information.

    (f) Relative value; multiple products--(1) Distribution. Where two 

or more products result from the manufacture or production of 

merchandise, drawback shall be distributed to the several products in 

accordance with their relative value at the time of separation.

    (2) Value. The value to be used in computing the distribution of 

drawback where two or more products result from the manufacture or 

production of merchandise under drawback conditions shall be the market 

value (see Sec.  191.2(u) of this part), unless another value is 

approved by Customs.

    (g) Payment. The drawback office shall authorize the amount of the 

refund due as drawback to the claimant.



[T.D. 98-16, 63 FR 11006, Mar. 5, 1998; 63 FR 15289, Mar. 31, 1998]