I
107TH CONGRESS
1ST SESSION
H. R. 1838
To amend the Tariff Act of 1930 to modify the provisions relating to
drawback claims, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 15, 2001
Mr. BRADY of Texas introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Tariff Act of 1930 to modify the provisions
relating to drawback claims, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE 
I—MODIFICATION 
OF
PROVISIONS 
RELATING 
TO
DRAWBACK CLAIMS
SEC. 101. MERCHANDISE NOT CONFORMING TO SAMPLE OR
SPECIFICATIONS.
Section 313(c) of the Tariff Act of 1930 (19 U.S.C.
1313(c)), is amended to read as follows:
‘‘(c) MERCHANDISE NOT CONFORMING TO SAMPLE
OR SPECIFICATIONS.—
‘‘(1) CONDITIONS FOR DRAWBACK.—Upon the
exportation or destruction under the supervision of
the Customs Service of articles or merchandise—
‘‘(A) upon which the duties have been
paid,
‘‘(B) which has been entered or withdrawn
for consumption,
‘‘(C) which is—
‘‘(i) not conforming to sample or spec-
ifications, shipped without the consent of
the consignee, or determined to be defec-
tive as of the time of importation, or
‘‘(ii) ultimately sold at retail and for
any reason returned to and accepted by
the importer or the claimant under the
provisions of the importer’s or claimant’s
merchandise warranty provision, and
‘‘(D) which, within 3 years after the date
of importation or withdrawal, as applicable, has
been exported or destroyed under the super-
vision of the Customs Service,
the full amount of the duties paid upon such mer-
chandise, less 1 percent, shall be refunded as draw-
back.
‘‘(2) DESIGNATION OF IMPORT ENTRIES.—Not-
withstanding paragraph (1), for purposes of para-
graph (1)(C)(ii), drawback may be claimed by desig-
nating any entry of merchandise that was imported
within 1 year before the date of exportation or de-
struction of the merchandise described in paragraph
(1) under the supervision of the Customs Service.
The returned merchandise, at the time of its impor-
tation, must be commercially interchangeable with
the merchandise designated for drawback.
‘‘(3) WHEN DRAWBACK CERTIFICATES NOT RE-
QUIRED.—For purposes of this subsection, drawback
certificates are not required if the drawback claim-
ant and the importer are the same party, or if the
drawback claimant is a drawback successor to the
importer as defined in subsection (s)(3).’’.
SEC. 
102. 
TIME 
LIMITATION 
ON 
EXPORTATION 
OR
DESTRUCTION.
Section 313(i) of the Tariff Act of 1930 (19 U.S.C.
1313(i)), is amended—
(1) by striking ‘‘No’’ and inserting ‘‘Unless oth-
erwise provided for in this section, no’’; and
‘‘(q) PACKAGING MATERIAL.—
‘‘(1) 
PACKAGING
MATERIAL
UNDER
SUB-
SECTIONS (c) AND (j).—Packaging material, whether
imported and duty paid, and claimed for drawback
under either subsection (c) or (j)(1), or imported
and duty paid, or substituted, and claimed for draw-
back under subsection (j)(2), shall be eligible for
drawback, upon exportation or destruction, of 99
percent of any duty, tax, or fee imposed under Fed-
eral law on such imported material.
‘‘(2) 
PACKAGING
MATERIAL
UNDER
SUB-
SECTIONS (a) AND (b).—Packaging material that is
manufactured or produced under subsection (a) or
(b) shall be eligible for drawback, upon exportation
or destruction, of 99 percent of any duty, tax, or fee
imposed under Federal law on the imported or sub-
stituted merchandise used to manufacture or
produce such material.
‘‘(3) CONTENTS.—Packaging material described
in paragraphs (1) and (2) shall be eligible for draw-
back whether or not they contain articles or mer-
chandise, and whether or not any articles or mer-
chandise they contain are eligible for drawback.
‘‘(4) EMPLOYING
PACKAGING
MATERIAL
FOR
ITS INTENDED PURPOSE PRIOR TO EXPORTATION.—
The use of any packaging material for its intended
purpose prior to exportation or destruction shall not
be treated as a use of such material prior to expor-
tation or destruction for purposes of applying sub-
section (a), (b), or (c), or paragraph (1)(B) or
(2)(C)(i) of subsection (j).’’.
SEC. 105. LIMITATION ON LIQUIDATION.
Section 504 of the Tariff Act of 1930 (19 U.S.C.
1504) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) LIQUIDATION.—
‘‘(1) ENTRIES FOR CONSUMPTION.—Unless an
entry of merchandise for consumption is extended
under subsection (b) of this section or suspended as
required by statute or court order, except as pro-
vided in section 751(a)(3), an entry of merchandise
for consumption not liquidated within 1 year from—
‘‘(A) the date of entry of such merchan-
dise,
‘‘(B) the date of the final withdrawal of all
such merchandise covered by a warehouse
entry,
‘‘(C) the date of withdrawal from ware-
house of such merchandise for consumption if,
pursuant to regulations issued under section
505(a), duties may be deposited after the filing
of any entry or withdrawal from warehouse, or
‘‘(D) if a reconciliation is filed, or should
have been filed, the date of the filing under sec-
tion 484 or the date the reconciliation should
have been filed,
shall be deemed liquidated at the rate of duty, value,
quantity, and amount of duties asserted at the time
of entry by the importer of record. Notwithstanding
section 500(e), notice of liquidation need not be
given of an entry deemed liquidated.
‘‘(2) ENTRIES OR CLAIMS FOR DRAWBACK.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), unless an entry or claim for
drawback is extended under subsection (b) or
suspended as required by statute or court order,
an entry or claim for drawback not liquidated
within 1 year from the date of entry or claim
shall be deemed liquidated at the drawback
amount asserted by the claimant at the time of
entry or claim. Notwithstanding section 500(e),
notice of liquidation need not be given of an
entry deemed liquidated.
‘‘(B) EXCEPTION.—An entry or claim for
drawback filed before the date of the enactment
of this paragraph, the liquidation of which is
not final as of the date of the enactment of this
paragraph, shall be deemed liquidated on the
date that is 1 year after the date of the enact-
ment of this paragraph at the drawback
amount asserted by the claimant at the time of
the entry or claim.
‘‘(3) PAYMENTS OR REFUNDS.—Payment or re-
fund of duties owed pursuant to paragraph (1) or
(2) shall be made to the importer of record or draw-
back claimant, as the case may be, not later than 90
days after liquidation.
‘‘(b) EXTENSION.—The Secretary may extend the pe-
riod in which to liquidate an entry if—
‘‘(1) the information needed for the proper ap-
praisement or classification of the imported or with-
drawn merchandise, or for determining the correct
drawback amount, or for ensuring compliance with
applicable law, is not available to the Customs Serv-
ice; or
‘‘(2) the importer of record or drawback claim-
ant, as the case may be, requests such extension and
shows good cause therefor.
The Secretary shall give notice of an extension under this
subsection to the importer of record or drawback claimant,
as the case may be, and the surety of such importer of
record or drawback claimant. Notice shall be in such form
and manner (which may include electronic transmittal) as
the Secretary shall by regulation prescribe. Any entry the
liquidation of which is extended under this subsection shall
be treated as having been liquidated at the rate of duty,
value, quantity, and amount of duty asserted at the time
of entry by the importer of record, or the drawback
amount asserted at the time of entry by the drawback
claimant, at the expiration of 4 years from the applicable
date specified in subsection (a).’’;
(2) in subsection (c)—
(A) by inserting ‘‘or drawback claimant, as
the case may be,’’ after ‘‘to the importer of
record’’; and
(B) by inserting ‘‘or drawback claimant’’
after ‘‘of such importer of record’’; and
(3) in subsection (d), by striking the period at
the end and inserting ‘‘or (in the case of a drawback
entry or claim) at the drawback amount asserted at
the time of entry by the drawback claimant.’’.
SEC. 106. PENALTIES FOR FALSE DRAWBACK CLAIMS.
Section 593A(h) of the Tariff Act of 1930 (19 U.S.C.
1593a(h)) is amended by striking ‘‘subsection (g)’’ and in-
serting ‘‘subsections (c) and (g)’’.
SEC. 107. EFFECTIVE DATE.
(a) SECTIONS 101, 102, 103, 104, AND 106.—The
amendments made by sections 101, 102, 103, 104, and
106 shall take effect on the date of the enactment of this
Act, and shall apply to—
(1) any drawback entry filed on and after such
date of enactment; and
(2) any drawback entry filed before such date
of enactment if the liquidation of the entry is not
final on such date of enactment.
(b) SECTION 105.—The amendments made by sec-
tion 105 shall take effect on the date of the enactment
of this Act, and shall apply to—
(1) any entry of merchandise for consumption
or entry or claim for drawback filed on and after
such date of enactment; and
(2) any entry or claim for drawback filed before
such date of enactment if the liquidation of the
entry or claim is not final on such date of enact-
ment.
TITLE II—LIQUIDATION OR RE-
LIQUIDATION 
OF 
CERTAIN
ENTRIES
SEC. 201. LIQUIDATION OR RELIQUIDATION OF CERTAIN
ENTRIES.
(a) IN GENERAL.—Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro-
vision of law, and subject to subsection (b), the United
States Customs Service shall, not later than 180 days
after the receipt of the request described in subsection (b),
liquidate or reliquidate each entry described in subsection
(d) by applying the column 1 general rate of duty of the
Harmonized Tariff Schedule of the United States to each
entry that is liquidated or reliquidated, regardless of
whether the entry was made under the column 1 special
rate of duty of such schedule.
(b) REQUESTS.—Liquidation or reliquidation may be
made under subsection (a) with respect to an entry de-
scribed in subsection (d) only upon a request therefor is
filed with the Customs Service.
(c) PAYMENT OF AMOUNTS DUE.—Any amounts due
to the United States pursuant to the liquidation or reliqui-
dation of an entry under subsection (a) shall be paid not
later than 180 days after the date of such liquidation or
reliquidation.
(d) AFFECTED ENTRIES.—The entries referred to in
subsection (a), filed at the ports of Laredo, Texas (des-
ignated as port of entry 2304), Hidalgo, Texas (des-
ignated as port of entry 2305), and Wilmington, Delaware
(designated as port of entry 1103), are as follows:
Entry number
Port of Entry
Date of Entry
95300618568
2305
02/22/95
95300618576
2305
02/22/95
95300619236
2305
02/27/95
95300619277
2305
02/27/95
95300619806
2305
03/02/95
95300619871
2305
03/02/95
95300620142
2305
03/07/95
95300620176
2305
03/03/95
95300620184
2305
03/03/95
95300620911
2305
03/07/95
95300635133
2305
04/07/95
95300635141
2305
04/07/95
95300635950
2305
04/12/95
95300635968
2305
04/12/95
95300636370
2305
04/14/95
95300636388
2305
04/14/95
95300640554
2305
05/09/95
95300640653
2305
05/10/95
95300656592
2304
11/05/95
95300657665
2304
11/29/95
95300657756
2304
12/02/95
95300658358
2304
12/16/95
95300658408
2304
12/17/95
95300658572
2304
12/19/95
95300658648
2304
12/22/95
95300658754
2304
12/22/95
95300658945
2304
12/27/95
95300659018
2304
12/28/95
95300659117
2304
12/29/95
95300659208
2304
01/02/96
95300659398
2304
01/05/96
95300659513
2304
01/08/96
95300659547
2304
01/09/96
95300659679
2304
01/11/96
95300659737
2304
01/14/96
95300659794
2304
01/13/96
95300659810
2304
01/14/96
95300659844
2304
01/15/96
95300659851
2304
01/15/96
95300659901
2304
01/16/96
95300659919
2304
01/16/96
95300659935
2304
01/17/96
95300660065
2304
01/18/96
95300660107
2304
01/19/96
95300660172
2304
01/22/96
95300660180
2304
01/22/96
95300660248
2304
01/22/96
95300660362
2304
01/23/96
95300660388
2304
01/24/96
95300660560
2304
01/25/96
95300660743
2304
01/27/96
95300660818
2304
01/29/96
Entry number
Port of Entry
Date of Entry
95300660826
2304
01/29/96
95300704053
2305
05/16/95
95300704061
2305
05/16/95
95300704889
2305
05/22/95
95300704897
2305
05/22/95
95300705886
2305
05/31/95
95300705969
2305
05/30/95
95300706900
2305
06/09/95
95300706926
2305
06/09/95
95300752656
2305
02/02/96
95300752698
2305
02/04/96
95300752805
2305
02/05/96
95300752813
2305
02/05/96
95300752870
2305
02/06/96
95300752904
2305
02/06/96
95300753001
2305
02/07/96
95300753076
2305
02/09/96
R7410350736
1103
11/29/95
R7410350769
1103
11/29/95
R7410350801
1103
11/29/95
R7410350835
1103
11/29/95
T8500081575
2305
06/16/95
T8500081591
2305
06/16/95
T8500081716
2305
06/20/95
T8500081724
2305
06/20/95
T8500081815
2305
06/27/95
T8500081823
2305
06/28/95
T8500081922
2305
06/27/95
T8500081930
2305
06/27/95
T8500082052
2305
07/01/95
T8500082060
2305
07/01/95
T8500082326
2305
07/14/95
T8500082342
2305
07/14/95
T8500082458
2305
07/22/95
T8500082482
2305
07/22/95
T8500082508
2305
07/24/95
T8500082516
2305
07/24/95
T8500082581
2305
07/30/95
T8500082599
2305
07/30/95
T8500082656
2305
08/03/95
T8500082664
2305
08/03/95
T8500082748
2305
08/09/95
T8500082797
2305
08/10/95
T8500082839
2305
08/14/95
T8500082847
2305
08/14/95
T8500084462
2305
10/22/95
Æ