Court of International Trade Orders Treasury and CBP to Issue TFTEA Drawback Final Regulations

On October 12, Judge Restani of the Court of International Trade (“CIT”) issued Slip Opinion 18-138 in the case of Tabacos de Wilson, et al v. Mnuchin et al. This Opinion also contains an Order that on or before December 17, 2018, Treasury and CBP shall file the final rule for Modernized Drawback with the Office of the Federal Register. This action by the Judiciary is a significant validation of Charter’s position that Treasury and CBP had violated the clear intent of Congress by withholding these regulations.

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.