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DRAWBACK SIMPLIFICATION LEGISLATION “A LOOK TO PROSPECTIVE OPPORTUNITIES” PRESENTATION BY ANNE HILSABECK – AMH CUSTOMS C

DRAWBACK SIMPLIFICATION LEGISLATION “A LOOK TO PROSPECTIVE OPPORTUNITIES” PRESENTATION BY ANNE HILSABECK – AMH CUSTOMS CONSULTANTS WESCCON – OCTOBER 19-22, 2006 HYATT REGENCY, IRVINE, CA. RECAP OF KEY FEATURES OF PROPOSED STATUTE.

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DRAWBACK SIMPLIFICATION LEGISLATION “A LOOK TO PROSPECTIVE OPPORTUNITIES” PRESENTATION BY ANNE HILSABECK – AMH CUSTOMS C

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  1. DRAWBACK SIMPLIFICATION LEGISLATION “A LOOK TO PROSPECTIVE OPPORTUNITIES” PRESENTATION BY ANNE HILSABECK – AMH CUSTOMS CONSULTANTS WESCCON – OCTOBER 19-22, 2006 HYATT REGENCY, IRVINE, CA

  2. RECAP OF KEY FEATURES OF PROPOSED STATUTE • 1. The standard for substitution becomes objective rather than subjective – using HTSUS to the 8-digit level • “Same Kind & Quality” (8-digit HTS#) • “Commercial Interchangeability” (track at 8-digit level) • With different 8-digit HTS# from import to export, claimant provides a bill of materials as the bridge record • No rulings required from CBP

  3. RECAP OF KEY FEATURES OF PROPOSED STATUTE 2. Multiple substitutions are allowed vs. one substitution under current law 3. No requirements on use of merchandise, certain exceptions apply to “receipt” of merchandise 4. Proof of Export has been modified (AES/Canadian or Mexico entry record/deemed exports)

  4. RECAP OF KEY FEATURES OF PROPOSED STATUTE • 5. Time frames for drawback are simplified – 5 years from date of import to filing of claim • No approvals for drawback-related privileges – claimants can file and get refund expeditiously rather than waiting through lengthy approval process

  5. RECAP OF KEY FEATURES OF PROPOSED STATUTE • Simplified “third party drawback” for CBP • purposes (Importer and exporter are different • parties) • No Certificates of Delivery • No Certificates of Manufacture • Drawback rights become a private transaction • between importer and claimant

  6. RECAP OF KEY FEATURES OF PROPOSED STATUTE • Drawback calculations are at the import entry • line item level consistent with import entry data • in ACE. This allows CBP to easily verify claim • calculations. • Additional reporting requirements with claim – change of HTS by statute, court decision, administrative ruling, bill of materials for evidence of “incorporation”

  7. PROSPECTIVE OPPORTUNITIES • Drawback at 8-digit level • -- Allows greater flexibility and new opportunity • for drawback refunds • 2. Time Frame for Claims • -- 5 years inclusive – import date to claim date • -- Remember historical records are a must

  8. PROSPECTIVE OPPORTUNITIES • 3. Private Agreements between Parties • Who can claim drawback? Any party that: • -- Permissions obtained via electronic notation in • the importer or exporters portal • -- Received (directly or indirectly) imported or • substituted product from importer

  9. PROSPECTIVE OPPORTUNITIES 4. Electronic Filing • All claimants have portal account • All claims will be filed via electronic mechanism • Pre-filing processing of claim will be outside ACE • environment • ACE will be able to be queried to determine • status of imports • Imports and export data will reside in ACE • environment

  10. PROSPECTIVE OPPORTUNITIES • Automated Export System Users (AES) • Drawback will be checks and balances between • import and export data • Classification matches to 8-digit level for • imports and exports • Not all importers are using AES – reliance placed • on freight forwarder for proper filing of data

  11. PROSPECTIVE OPPORTUNITIES 6. Managing the New Process • New program, new rules – study the legislation • Review current accounts for modifications and • new opportunity • Build stability in your services – the new rules • are not that easy – CBP is placing burden on • claimants

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