Charter’s Comments to Proposed Rulemaking (NPRM) and Drawback Regulations

On September 17, 2018, Charter Brokerage submitted , comments in response to the Notice of Proposed Rulemaking (“NPRM”) issued by Treasury and Customs on August 2, 2018. Charter participated with the Trade Support Network and various associations during the 10-year legislative process that produced TFTEA. Charter was also involved with a working group in partnership with CBP to develop the above referenced regulations. CBP promised that there would be no “surprises” within the NPRM, unfortunately that was not the case. In particular, Treasury added a number of new provisions that were never previously discussed. The majority of our comments relate to the proposed regulations related to the limitation on Federal excise taxes eligible for duty drawback. Please see the brief summary below of Charter’s comments to the NPRM.

To Claim Or Not To Claim: Which Imported Items Are Eligible for Duty Drawback under TFTEA (HR 644)?

As the U.S. implements the Section 301 duties on enumerated tariff numbers imported from China, many importers are currently assessing the impact of these duties on their operations. Importers should assess the capacity to utilize duty drawback to mitigate the impact of these tariffs. With the current fluctuation and updates to tariff laws, it is important to be aware of the latest 301 tariff lists in order to maximize your refund.

Charter Brokerage legally challenges CBP’s recent restrictions in duty drawback

On February 24, 2016, U.S. Customs and Border Protection (CBP) passed into law the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA). The new law included a two-year waiting period in which TFTEA drawback claims could not be filed. Congress had directed the Secretary of the Treasury to publish a regulation for calculating TFTEA drawback claims by February 24, 2018.