[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

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

[CITE: 19CFR24.36]



[Page 418-422]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 24_CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE--Table of Contents

 

Sec.  24.36  Refunds of excessive duties, taxes, etc.



    (a) When it is found upon, or prior to, liquidation or reliquidation 

of an entry or reconciliation that a refund of excessive duties, taxes, 

fees or interest (at the rate determined in accordance with Sec.  

24.3a(c)(1)) is due, a refund shall be prepared in the name of the 

person to whom the refund is due, as determined under paragraphs (b) and 

(c) of this section. If an authority to mail checks to someone other 

than the payee, Customs Form 4811, is on file, the address of the payee 

shall be shown as in care of the address of the authorized persons. If a 

power of attorney is on file, the address of the payee may be shown as 

in care of the address of such attorney, if requested. A Form 4811 

received by Customs will not be effective if a Customs transaction 

requiring the use of the owner's importer number has not been made 

within 3 years from the date the Form 4811 was filed or if there is no 

unliquidated entry on file to which such number is to be associated. For 

purposes of this section:

    (1) Except as otherwise provided in paragraphs (a)(1)(i) through 

(a)(1)(iii) of this section, the refund shall include interest on the 

excess moneys deposited with Customs, and such interest shall accrue 

from the date the duties, taxes, fees or interest were deposited or, in 

a case in which a proper claim is filed under 19 U.S.C. 1520(d) and 

subpart D of Part 181 of this chapter, from the date such claim is 

filed, to the date of liquidation or reliquidation of the applicable 

entry or reconciliation. An example follows:



    Example: Entry liquidates for a refund

    [GRAPHIC] [TIFF OMITTED] TR20OC99.005

    



Importer is owed a refund of $600 plus interest as follows:

The importer makes a $1,000 initial deposit (January 1) and the entry 

liquidates for $400



[[Page 419]]



(December 1). Upon liquidation, the importer will be owed a refund of 

$600 plus interest. The interest will accrue from the date of deposit 

(January 1) to the date of liquidation (December 1).



    (i) If an additional deposit of duties, taxes, fees or interest was 

made prior to liquidation or reliquidation and if any portion of that 

additional deposit was in excess of the amount required to be deposited, 

in addition to any other interest accrued under this paragraph (a)(1), 

the refund also shall include interest accrued on the excess additional 

deposit from the date of the additional deposit to the date of 

liquidation or reliquidation of the applicable entry or reconciliation. 

An example follows:



    Example: Additional deposit made and entry liquidates for a refund

    [GRAPHIC] [TIFF OMITTED] TR20OC99.006

    



Importer is owed a refund of $900 plus interest as follows:

The importer makes a $1,000 initial deposit (January 1) and an 

additional pre-liquidation deposit of $200 (May 1) and the entry 

liquidates for $300 (December 1). Upon liquidation, the importer will be 

refunded $900 plus interest. The interest accrues in two segments: (1) 

On the additional deposit overpayment ($200), from the date of the 

additional deposit (May 1) to the date of liquidation (December 1); and 

(2) on the initial deposit overpayment ($700), from the date of deposit 

(January 1) to the date of liquidation (December 1).



    (ii) In the case of a refund of duties, taxes, fees or interest made 

prior to liquidation, such a refund will include only principal amounts 

and not any interest thereon. Interest on such principal amounts will be 

computed at the time of liquidation or reliquidation and shall accrue as 

follows:

    (A) Interest shall only accrue on the amount refunded from the date 

the duties, taxes, fees or interest were deposited to the date of the 

refund if the amount refunded is determined upon liquidation or 

reliquidation of the applicable entry or reconciliation to constitute 

the true excess amount deposited with Customs. An example follows:



    Example: Pre-liquidation refund and entry liquidates for net amount 

collected

[GRAPHIC] [TIFF OMITTED] TR20OC99.007





Importer is owed a refund of interest on $200 as follows:

The importer makes a $1,000 initial deposit (January 1) and receives a 

pre-liquidation refund of $200 (May 1) and the entry liquidates for $800 

(December 1). Upon liquidation, the importer will be refunded interest 

on the $200 overpayment from the date of the initial deposit (January 1) 

to the date of the pre-liquidation refund (May 1).



    (B) If the amount refunded is determined upon liquidation or 

reliquidation of the applicable entry or reconciliation to constitute 

less than the true excess amount deposited with Customs, in addition to 

any other interest accrued under this paragraph (a)(1), interest also 

shall accrue on the remaining excess deposit from the date the



[[Page 420]]



duties, taxes, fees or interest were deposited to the date of 

liquidation or reliquidation. An example follows:



    Example: Pre-liquidation refund and entry liquidates for an 

additional refund

[GRAPHIC] [TIFF OMITTED] TR20OC99.008





Importer is owed a refund of $700 plus interest as follows:

The importer makes a $1,000 initial deposit (January 1) and receives a 

pre-liquidation refund of $200 (May 1) and the entry liquidates for $100 

(December 1). Upon liquidation, the importer will be refunded $700 plus 

interest. The interest accrues in two segments: (1) On the pre-

liquidation refund ($200), from the date of deposit (January 1) to the 

date of the pre-liquidation refund (May 1); and (2) on the remaining 

overpayment ($700), from the date of deposit (January 1) to the date of 

liquidation (December 1).



    (C) If an entry or reconciliation is determined upon liquidation or 

reliquidation to involve both an initial underpayment and an additional 

excess deposit, interest in each case shall be computed separately and 

the resulting amounts shall be netted for purposes of determining the 

final amount of interest to be reflected in the refund. An example 

follows:



    Example: Additional deposit made and entry liquidates for a refund

    [GRAPHIC] [TIFF OMITTED] TR20OC99.009

    



Importer is owed a refund of $200 plus or minus net interest as follows:

The importer makes a $1,000 initial deposit on the required date 

(January 1) and an additional pre-liquidation deposit of $300 (May 1) 

and the entry liquidates for $1,100 (December 1). Upon liquidation, the 

importer will be refunded $200 plus or minus net interest. The interest 

accrues in two segments: (1) Interest accrues in favor of the Government 

on the initial underpayment ($100) from the date deposit was required 

(January 1) to the date of the additional deposit (May 1); and (2) 

interest accrues in favor of the importer on the overpayment ($200) from 

the date of the additional deposit (May 1) to the date of liquidation 

(December 1).



    (D) If the amount refunded or any portion thereof exceeds the amount 

properly refundable as determined upon liquidation or reliquidation of 

the applicable entry or reliquidation, the excess amount refunded shall 

be treated as an underpayment of duties, taxes, fees or interest on 

which interest shall accrue as provided in Sec.  24.3a.

    (2) A refund determined to be due upon liquidation or reliquidation, 

including a refund consisting only of interest that has accrued in 

accordance with paragraph (a)(1)(ii) of this section, shall be paid 

within 30 days of the date of liquidation or reliquidation of the 

applicable entry or reconciliation.

    (3) If a refund, including any interest thereon, is not paid in full 

within the applicable 30-day period specified in paragraph (a)(2) of 

this section, the refund shall be considered delinquent thereafter and 

interest shall accrue on the unpaid balance by 30-day periods until the 

full balance is paid. However, no interest will accrue during the 30-day 

period in which the refund is paid.

    (b) Refunds of excessive duties, taxes, fees or interest shall be 

certified for



[[Page 421]]



payment to the importer of record unless a transferee of the right to 

withdraw merchandise from bonded warehouse is entitled to receive the 

refund under section 557(b), Tariff Act of 1930, as amended, or an 

owner's declaration has been filed in accordance with section 485(d), 

Tariff Act of 1930, or a surety submits evidence of payment to Customs, 

upon default of the principal, of amounts previously determined to be 

due on the same entry or transaction. The certification of a refund for 

payment to a nominal consignee may be made prior to the expiration of 

the 90-day period within which an owner's declaration may be filed as 

prescribed in section 485(d) of the Tariff Act, provided the nominal 

consignee waives in writing his right to file such declaration. If an 

owner's declaration has been duly filed, the refund shall be certified 

for payment to the actual owner who executed the declaration, except 

that, irrespective of whether an owner's declaration has been filed, 

refunds shall be certified for payment to a transferee provided for in 

section 557(b), Tariff Act of 1930, as amended, if the moneys with 

respect to which the refund was allowed were paid by such transferee. If 

a surety submits evidence of payment to Customs, upon default of the 

principal, for an amount previously determined to be due on an entry or 

transaction the refund shall be certified to that surety up to the 

amount paid by it or shall be applied to other obligations of the 

surety.

    (c) If the nominal consignee has become bankrupt, refunds of duties, 

taxes, fees or interest on merchandise entered in the name of such 

nominal consignee for the account of the actual owner shall be withheld 

from payment pending the receipt of a claim therefor and the 

establishment of rights thereto, unless the declaration of the actual 

owner has been filed with the port director under section 485(d), Tariff 

Act of 1930.

    (d) The authority of port directors to make refunds pursuant to 

paragraphs (a), (b), and (c) of this section of excessive deposits of 

alcohol or tobacco taxes, as defined in section 6423(e)(1), Internal 

Revenue Code of 1954 (26 U.S.C. 6423(e)(1)), is confined to cases of the 

types which are excepted from the application of section 6423, Internal 

Revenue Code of 1954 (26 U.S.C. 6423). The excepted types of cases and, 

therefore, the types in which the port director is authorized to make 

refunds of such taxes are those in which:

    (1) The tax was paid or collected on an article imported for the 

personal or household use of the importer;

    (2) The refund is made pursuant to provisions of laws and 

regulations for drawback;

    (3) The tax was paid or collected on an imported article withdrawn 

from the market, returned to bond, or lost or destroyed, when any law 

expressly provides for refund in such case;

    (4) The tax was paid or collected on an imported article which has 

been lost, where a suit or proceeding was instituted before June 15, 

1957;

    (5) The refund of tax is pursuant to a claim based solely on errors 

of computation of the quantity of the imported article, or on 

mathematical errors in computation of the tax due;

    (6) The tax was paid or collected on an imported article seized and 

forfeited, or destroyed, as contraband;

    (7) The tax was paid or collected on an imported article refused 

admission to Customs territory and exported or destroyed in accordance 

with section 558, Tariff Act of 1930, as amended;

    (8) The refund of tax is pursuant to a reliquidation of an entry 

under section 520(c)(1), Tariff Act of 1930, as amended, and does not 

involve a rate of tax applicable to an imported article; or

    (9) The tax was paid or collected on a greater quantity of imported 

articles than that actually imported and the fact of the deficiency is 

established to the port directors' satisfaction before liquidation of 

the entry becomes final.

    (e) In any instance in which a refund of an alcohol or tobacco tax 

is not of a type covered by paragraph (d) of this section the following 

procedure shall apply:

    (1) The port director shall issue a notice of refund for duty only 

and shall place the following statement on the notice of refund issued 

for duty: ``Claim or refund of any overpayment of internal revenue tax 

on this entry must be executed and filed with the assistant regional 

commissioner (alcohol, tobacco and firearms) of the internal



[[Page 422]]



revenue region in which the claimant is located, in accordance with 

internal revenue regulations (Title 26 of the Code of Federal 

Regulations).'' On request of the claimant, the port director shall 

issue a certified statement on Customs letterhead identifying the entry, 

showing the amount of internal revenue tax deposited with respect to 

each entry for which a claim on internal revenue Form 843 is to be made, 

and showing the date of issuance of the notice of refund of duty.

    (2) The claim shall be executed on internal revenue Form 843 

(original only) which may be procured from offices of the Internal 

Revenue Service and shall be filed with the assistant regional 

commissioner (alcohol, tobacco and firearms) of the internal revenue 

region in which the claimant is located. The certified statement shall 

be attached to and filed in support of such claim which may include 

refunds under more than one entry but shall be limited to refunds under 

entries filed at the same port and the same internal revenue region. The 

data to be shown on the claim shall be as prescribed in internal revenue 

regulations, with the exception that any data on the certified statement 

also required to be shown in the claim need not be restated in the 

claim.

    (3) The date of allowance of refund or credit in respect of such tax 

for the purposes of section 6407, Internal Revenue Code of 1954 (26 

U.S.C. 6407) shall be that date on which a claim is perfected and the 

refund is authorized for scheduling under the applicable internal 

revenue regulations.



[28 FR 14808, Dec. 31, 1963, as amended by T.D. 67-33, 32 FR 494, Jan. 

18, 1967; T.D. 71-289, 36 FR 23150, Dec. 4, 1971; T.D. 89-1, 53 FR 

51254, Dec. 21, 1988; T.D. 99-27, 64 FR 13675, Mar. 22, 1999; T.D. 99-

75, 64 FR 56439, Oct. 20, 1999]