TFTEA Drawback Regulations are Finally Here! Jonathan Todd is a Partner with the Transportation & Logistics Practice Group at Benesch, Friedlander, Coplan & Aronoff. Our legal experience, planning skills, high-level expertise and in-depth experience are simply unmatched by any other global trade service provider. Today in CSMS #18-000737, CBP announced that the Modernized Drawback Final Rule has been posted online for public inspection and that the regulations necessary for CBP to begin processing payments for Accelerated Payment (AP) on TFTEA drawback claims are now effective. Our services include all matters necessary to establish and run a sophisticated duty drawba… Approve forms by using a lawful digital signature and share them by way of email, fax or print them out. The regulations further expand and harmonize the time window for all drawback claim types to five (5) years form the date of importation to the filing of the drawback claim related to that import. Charter files claims to US Customs for more duty and tax recoveries than all other U.S. service providers. Make them reusable by generating templates, include and complete fillable fields. The new regulations additionally set forth various instances in which drawback is not allowed. The drawback regulations were the subject of Congressional hearings as well as a lawsuit in which the Court of … The Court of International Trade ruled on October 12, 2018 that CBP must file a final rule for drawback under the Trade Facilitation and Trade Enforcement ACT (TFTEA) with the Office of the Federal Register by December 17, 2018. A two-year effort between U.S. Customs and Border Protection and the import/export industry to update the nation’s two-centuries-old duty drawback program came to fruition on Tuesday with the agency’s publication of the final “modernized” drawback regulations. The long-awaited TFTEA drawback regulations were published on December 18, 2018. Congress allows importers to essentially seek refunds up to ninety-nine percent (99%) of duties paid on imported goods if those goods are later exported. The Working Group discussed this issue at length with CBP officials to explain why it’s important to continue Accelerated Payment in the interim. TFTEA and Duty Drawback Duty Drawback is a program that allows for a refund of 99 percent of duties, fees, and taxes for merchandise imported with duties or fees paid and subsequently exported (or destroyed); this includes finished goods, products used in manufacturing, defective merchandise, and substituted goods.1 Last week, due to their court-imposed deadline, CBP released the final Duty Drawback Regulations (Modernized Drawback). However, U.S. Customs and Border Protection has refused to process TFTEA claims or pay them through accelerated payment, citing uncertainties about the calculation of drawback until final regulations are in place. endstream endobj startxref While TFTEA generally expands drawback rights, the NPR itself raises concerns for importers and exporters which may warrant submitting comments by 17 September 2018. This Duty Drawback webinar will help you understand the basic aspects of the different types of duty drawback programs available along with the new rules and regulations, known as TFTEA, which have significantly changed some aspects of the duty drawback industry altogether. He is a licensed U.S. Customs Broker in addition to an attorney and may be reached at 216-363-4658 or jtodd@beneschlaw.com. Starting February 24, 2019, companies who intend to file drawback claims must follow the new TFTEA regulations. 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