80 FR 47405 - Liberalization of Certain Documentary Evidence Required as Proof of Exportation on Drawback Claims

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY

Federal Register Volume 80, Issue 152 (August 7, 2015)

This document amends U.S. Customs and Border Protection (CBP) regulations by removing some of the requirements for documentation used to establish proof of exportation for drawback claims. Currently, claimants must provide originally signed documentary evidence or a certified copy of such documentary evidence to establish the date and fact of exportation of articles for drawback purposes. This document also amends various sections of title 19 of the Code of Federal Regulations (CFR) to reflect that there is no longer a legal requirement that the export invoice for mail shipments be certified. Additionally, this document amends Appendix B to part 191 of title 19 so that the Appendix reflects previous regulatory amendments closing four drawback offices. Finally, this document amends CBP regulations to reflect the change from the legacy agency name of U.S. Customs Service to the current agency name of U.S. Customs and Border Protection and to make other non-substantive editorial changes.

[Federal Register Volume 80, Number 152 (Friday, August 7, 2015)]
[Rules and Regulations]
[Pages 47405-47407]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19466]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 181 and 191

[CBP Dec. 15-11]
RIN 1515-AE02


Liberalization of Certain Documentary Evidence Required as Proof 
of Exportation on Drawback Claims

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends U.S. Customs and Border Protection (CBP) 
regulations by removing some of the requirements for documentation used 
to establish proof of exportation for drawback claims. Currently, 
claimants must provide originally signed documentary evidence or a 
certified copy of such documentary evidence to establish the date and 
fact of exportation of articles for drawback purposes. This document 
also amends various sections of title 19 of the Code of Federal 
Regulations (CFR) to reflect that there is no longer a legal 
requirement that the export invoice for mail shipments be certified. 
Additionally, this document amends Appendix B to part 191 of title 19 
so that the Appendix reflects previous regulatory amendments closing 
four drawback offices. Finally, this document amends CBP regulations to 
reflect the change from the legacy agency name of U.S. Customs Service 
to the current agency name of U.S. Customs and Border Protection and to 
make other non-substantive editorial changes.

DATES: This final rule is effective on August 7, 2015.

FOR FURTHER INFORMATION CONTACT: For legal aspects, Carrie L. Owens, 
Chief, Entry Process & Duty Refunds Branch, Regulations and Rulings, 
Office of International Trade, (202) 325-0266. For operational aspects, 
Celestine L. Harrell, Chief, Post Release and Trade Processes Branch, 
Office of International Trade, (202) 863-6937.

SUPPLEMENTARY INFORMATION:

Background

    This document amends the U.S. Customs and Border Protection (CBP) 
regulations by: (1) Removing some of the requirements for drawback 
claimants to establish proof of exportation; (2) conforming Appendix B 
to part 191 of the CBP regulations to previous regulatory changes 
reflecting the closing of four drawback offices; (3) updating the 
regulations to reflect that CBP is now part of the Department of 
Homeland Security; and (4) making other non-substantive editorial and 
nomenclature changes.

Easing the Requirements for Establishing Proof of Exportation

    This document amends title 19 of the Code of Federal Regulations 
(19 CFR) by making amendments to 19 CFR parts 181 and 191, 
specifically, sections 19 CFR 181.47, 191.72 and 191.74 to align CBP 
documentation requirements with current business practices related to 
the documents used to establish the date and fact of exportation for 
purposes of drawback. In order to qualify for drawback, claimants must 
establish that articles are exported or destroyed. When drawback is 
claimed for exported goods, the claimant must submit documentation that 
establishes fully the date and fact of exportation and the identity of 
the exporter. See 19 CFR 191.72. For certain types of drawback claims 
subject to the North American Free Trade Agreement (NAFTA), 
documentation must also establish the identity and location of the 
ultimate consignee of the exported goods. See 19 CFR 181.47 
(b)(2)(ii)(G).
    The documents for establishing exportation include, but are not 
limited to: a bill of lading, air waybill, freight waybill, Canadian 
Customs manifest, and/or cargo manifest. See 19 CFR 191.72(a). If the 
export is a mail shipment, vessel supply, or transfer to a foreign 
trade zone, other procedures to establish exportation may apply. See 19 
CFR 191.72 (c)-(e). Current CBP regulations specify that the documents 
listed in paragraph (a) must be either originally signed or certified 
copies thereof. See 19 CFR 191.72(a). Additionally, certain claims 
subject to NAFTA require that the claimant produce an originally signed 
document or a certified copy of such document. See 19 CFR 
181.47(b)(2)(ii)(G).
    Acquiring pen and ink signatures for the original documentation or 
certified copies of such documentation is time consuming and often 
unrealistic for the trade. CBP realizes the difficulty of having to 
provide a pen and ink signature for documents when these documents are 
issued electronically and do not contain an actual pen and ink 
signature. As a consequence, drawback claims are often denied when 
claimants can produce only documentary evidence that does not contain a 
signature or copies of such documents that are not certified.

[[Page 47406]]

    As such, CBP is amending its regulations by removing the 
requirement that the documentary evidence that establishes the date and 
fact of exportation for drawback eligibility be originally signed or 
that any copy of such documentary evidence must be certified. CBP will 
now allow claimants to provide unsigned originals or copies of 
documentary evidence as proof of export for drawback eligibility. 
Therefore, copies of original documentary evidence will no longer need 
to be certified.
    Additionally, pursuant to 19 CFR 191.72(c), CBP currently requires 
a certified export invoice for mail shipments and references section 
191.74. Even though section 191.72(c) cites to section 191.74 as a 
reference for the ``certified export invoice'' requirement for mail 
shipments, the regulatory text of 19 CFR 191.74 does not require a 
claimant to submit a certified copy of the export invoice, but only 
requires that the claimant provide the official postal records. There 
is no reference to ``export invoice'' in section 191.74. Further, the 
only reference to ``certification'' is in the title heading to section 
191.74. Accordingly, CBP is removing the phrase ``Certification of'' 
from the heading text to section 191.74 as it is misleading as to what 
that regulation requires. Thus, CBP is clarifying that claimants 
submitting postal records in support of exportation in accordance with 
section 191.74 may submit either originals or uncertified copies of 
official postal records by clearly stating that within the text of 
section 191.74. Further, CBP is revising section 191.72(c) to 
accurately reflect the plain language of section 191.74 by requiring 
evidence of official postal records (originals or copies) that 
demonstrate exportation by mail.
    Other non-substantive editorial changes to reflect the plain 
English mandate are made to these regulatory sections, 19 CFR 181.47, 
191.72 and 191.74.

Conforming Amendments

    CBP inadvertently failed to remove from Appendix B to part 191 
references to certain drawback offices when the agency previously 
amended the regulations to close four drawback offices. Three drawback 
offices were closed in 2003 (Boston, MA; New Orleans, LA; and Miami, 
FL) and one in 2010 (Long Beach, CA). See Consolidation of Customs 
Drawback Centers: Final rule, 68 FR 3381, dated January 24, 2003; and 
Further Consolidation of CBP Drawback Centers: Final rule, 75 FR 24392, 
dated May 5, 2010. Accordingly, this document amends Appendix B, 
Sections II through V within part 191 of 19 CFR to reflect the closure 
of those four drawback offices by removing the reference to eight 
drawback offices and by removing the references to the locations of the 
four closed offices (that is, Boston, MA; Long Beach, CA; Miami, FL; 
and New Orleans, LA).

Nomenclature Changes

    On November 25, 2002, the President signed into law the Homeland 
Security Act of 2002 (Pub. L. 107-296, 116 Stat. 2135). Accordingly, as 
of March 1, 2003, the former U.S. Customs Service of the Department of 
the Treasury was transferred to DHS and reorganized to become CBP. 
Accordingly, this document further amends Sec.  181.47 to reflect the 
change from the legacy agency name, U.S. Customs Service, to the 
current name, U.S. Customs and Border Protection or CBP.

Discussion of Changes

Part 181

    Section 181.47 of the CBP regulations (19 CFR 181.47) pertains to 
the documents required for a NAFTA drawback claim. Paragraph 
(b)(2)(ii)(G) of Sec.  181.47 is amended by removing the requirement 
that copies of the exemplar documents in that paragraph be certified.
    In addition, section 181.47 contains the legacy agency name of 
Customs. Accordingly, Sec.  181.47 is amended to remove the outdated 
information and replace it with the current agency name CBP in 
Sec. Sec.  181.47(b)(2), 181.47(b)(2)(i)(A), 181.47(b)(2)(i)(B), 
181.47(b)(2)(i)(F), 181.47(b)(2)(ii)(A), 181.47(b)(2)(ii)(B), 
181.47(b)(2)(ii)(C), 181.47(b)(2)(ii)(D), 181.47(b)(2)(ii)(E), 
181.47(b)(2)(iii)(A), 181.47(b)(2)(iii)(B), and 181.47(b)(2)(iii)(D). 
Additionally, the word ``shall'' is replaced with either ``must'', 
``will'' or ``is'', as appropriate, in paragraphs (a), (b)(1), 
(b)(2)(i), (b)(2)(i)(E), (b)(2)(ii), (b)(2)(ii)(B), (b)(2)(ii)(G), 
(b)(2)(ii)(H), (b)(2)(iii), (b)(2)(iv), (b)(2)(v), and (c) of Sec.  
181.47 to conform with the plain English mandate.

Part 191

    Section 191.72 of the CBP regulations (19 CFR 191.72) pertains to 
exportation procedures for drawback. Section 191.72(a) is amended by 
removing the terms ``originally signed'' and ``certified'' from the 
list of acceptable documentary evidence for establishing the date and 
fact of exportation for drawback eligibility. Section 191.72(c) is 
revised to reflect the requirements of section 191.74 and to reflect 
that the postal records for export shipments no longer have to be 
certified. Section 191.74 is amended by removing the words 
``Certification of'' from the heading text because the text of 191.74 
does not require a claimant to submit a certified copy of the postal 
record and the title heading cannot impose a legal requirement that is 
not also reflected in the regulatory text. CBP is also making it clear 
that claimants may submit either originals or copies of official postal 
records by adding the parenthetical phrase ``(originals or copies)'' 
after the phrase ``official postal records'' in section 191.74.
    This document also makes non-substantive amendments to Appendix B, 
Sections II through V within part 191 of 19 CFR as discussed above.

Inapplicability of Notice and Delayed Effective Date

    Because the amendments in parts 181 and 191 of 19 CFR set forth in 
this document merely relieve a burden on the public and the amendments 
to the Appendix of part 191 conform the regulations to previous 
regulatory changes to reflect the consolidation of drawback offices, 
CBP finds that good cause exists for dispensing with notice and public 
procedure as unnecessary under 5 U.S.C. 553(b)(B). For this same 
reason, pursuant to 5 U.S.C. 553(d)(3), CBP finds good cause for 
dispensing with the requirement for a delayed effective date.

Regulatory Flexibility Act

    Because this document is not subject to the notice and public 
procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Executive Order 12866

    These amendments do not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866, as 
supplemented by Executive Order 13563.

Signing Authority

    This regulation is being issued in accordance with 19 CFR 
0.1(a)(1), pertaining to the authority of the Secretary of the Treasury 
(or that of his delegate) to approve regulations concerning drawback.

List of Subjects

19 CFR Part 181

    Administrative practice and procedure, Customs duties and 
inspection, Exports, Imports, Reporting and recordkeeping requirements.

[[Page 47407]]

19 CFR Part 191

    Claims, Customs duties and inspection, Exports, Reporting and 
recordkeeping requirements.

Amendments to the CBP Regulations

    For the reasons set forth above, parts 181 and 191 of the CBP 
Regulations (19 CFR parts 181 and 191) and Appendix B to part 191 of 19 
CFR are amended as set forth below:

PART 181--NORTH AMERICAN FREE TRADE AGREEMENT

0
1. The general authority citation for part 181 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 3314.
* * * * *


Sec.  181.47  [Amended]


0
2. In Sec.  181.47:
0
a. Paragraph (a) is amended by:
0
(i) In the first sentence, by removing the word ``shall'' and adding, 
in its place, the word ``will'';
0
(ii) In the second sentence, by removing the word ``shall'' each place 
it occurs and adding, in its place, the word ``must''; and
0
(iii) In the third sentence, by removing the word ``shall'' and adding, 
in its place, the word ``will'';
0
b. Paragraph (b)(1) is amended by removing the word ``shall'' each 
place it occurs and adding, in its place, the word ``must'';
0
c. Paragraph (b)(2) introductory text is amended by removing the word 
``Customs'' and adding, in its place, the term ``CBP'';
0
d. Paragraph (b)(2)(i) is amended by removing the word ``shall'' and 
adding, in its place, the word ``must'';
0
e. Paragraphs (b)(2)(i)(A), (b)(2)(i)(B) and (b)(2)(i)(F) are amended 
by removing the word ``Customs'' and adding, in its place, the term 
``CBP'';
0
f. Paragraphs (b)(2)(i)(E) and (b)(2)(ii) introductory text are amended 
by removing the word ``shall'' and adding, in its place, the word 
``must'';
0
g. Paragraph (b)(2)(ii)(A) is amended by removing the word ``Customs'' 
and adding, in its place, the term ``CBP''; and by removing the word 
``shall'' and adding, in its place, the word ``must'';
0
h. Paragraph (b)(2)(ii)(B) is amended by:
0
(i) Removing the first and third occurrence of the word ``Customs'' and 
adding, in its place, the term ``CBP'';
0
(ii) Removing the second occurrence of the word ``Customs'' and adding, 
in its place, the words ``the CBP-assigned''; and
0
(iii) Removing the word ``shall'' and adding, in its place, the word 
``must'';
0
i. Paragraphs (b)(2)(ii)(C), (b)(2)(ii)(D) and (b)(2)(ii)(E) are 
amended by removing the word ``Customs'' and adding, in its place, the 
term ``CBP'';
0
j. Paragraph (b)(2)(ii)(G) is revised;
0
k. Paragraph (b)(2)(ii)(H) is amended by removing the phrase ``shall 
be'' and adding, in its place, the word ``is'';
0
l. Paragraph (b)(2)(iii) is amended by removing the word ``shall'' and 
adding, in its place, the word ``must'';
0
m. Paragraphs (b)(2)(iii)(A), (b)(2)(iii)(B), and (b)(2)(iii)(D) are 
amended by removing the word ``Customs'' each place it appears and 
adding, in its place, the term ``CBP'';
0
n. Paragraph (b)(2)(iv) is amended by:
0
(i) Removing the first occurrence of the word ``shall'' and adding, in 
its place, the word ``will''; and
0
(ii) Removing the second occurrence of the word ``shall'' and adding, 
in its place, the word ``must'';
0
o. Paragraph (b)(2)(v) is amended by removing the word ``shall'' and 
adding, in its place, the word ``will''; and
0
p. Paragraph (c) introductory text is amended by removing the word 
``shall'' and adding, in its place, the word ``must''.
    The revision reads as follows:


Sec.  181.47  Completion of claim for drawback.

* * * * *
    (b) * * *
    (2) * * *
    (ii) * * *
    (G) Evidence of exportation. Acceptable documentary evidence of 
exportation of goods to Canada or Mexico may include originals or 
copies of any of the following documents that are issued by the 
exporting carrier: bill of lading, air waybill, freight waybill, export 
ocean bill of lading, Canadian customs manifest, and cargo manifest. 
Supporting documentary evidence must establish fully the time and fact 
of exportation, the identity of the exporter, and the identity and 
location of the ultimate consignee of the exported goods;
* * * * *

PART 191--DRAWBACK

0
3. The general authority citation for part 191 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States), 1313, 1624.
* * * * *


Sec.  191.72  [Amended]

    4. In Sec.  191.72:

0
a. The introductory paragraph is amended by removing the word ``shall'' 
and adding, in its place, the word ``must'' in the first two sentences; 
and
0
b. Paragraphs (a) and (c) are revised to read as follows:


Sec.  191.72  Exportation procedures.

* * * * *
    (a) Documentary evidence of exportation (originals or copies) 
issued by the exporting carrier, such as a bill of lading, air waybill, 
freight waybill, Canadian Customs manifest, and/or cargo manifest;''.
* * * * *
    (c) Official postal records (originals or copies) which evidence 
exportation by mail (Sec.  191.74);
* * * * *


Sec.  191.74  [Amended]

0
5. In Sec.  191.74:
0
a. The section heading is revised;
0
b. In the first sentence, add the parenthetical ``(originals or 
copies'') after the phrase ``the official postal records''; and
0
c. The last sentence is amended by removing the parenthetical ``(see 
Sec.  191.51(a)'' and adding, in its place, the parenthetical ``(see 
Sec.  191.51(a))''.
    The revision reads as follows:


Sec.  191.74  Exportation by mail.

* * * * *

Appendix B to Part 191 [Amended]

0
6. In Appendix B to Part 191, Sections II through V, under the headings 
titled, ``CBP OFFICE WHERE DRAWBACK CLAIMS WILL BE FILED'' remove the 
parenthetical ``(The 8 offices where drawback claims can be filed are 
located at: Boston, MA; New York, NY; Miami, FL; New Orleans, LA; 
Houston, TX; Long Beach, CA; Chicago, IL; San Francisco, CA)'' each 
place it appears and adding, in its place, the parenthetical ``(The 
four offices where drawback claims can be filed are located at: New 
York, NY; Houston, TX; Chicago, IL; San Francisco, CA)''.

R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
    Approved: August 4, 2015.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2015-19466 Filed 8-6-15; 8:45 am]
 BILLING CODE 9111-14-P