I
106TH CONGRESS
2D SESSION
H. R. 4696
To amend the Tariff Act of 1930 to modify the provisions relating to
drawback claims, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 2000
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‘‘(B) which has been entered or withdrawn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 DE-
STRUCTION.
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
(2) by inserting ‘‘, or destroyed under the su-
pervision of the Customs Service,’’ after ‘‘exported’’.
SEC. 103. USE OF DOMESTIC MERCHANDISE ACQUIRED IN
EXCHANGE FOR IMPORTED MERCHANDISE
OF SAME KIND AND QUALITY.
Section 313(k) of the Tariff Act of 1930 (19 U.S.C.
1313(k)), is amended—
(1) by striking ‘‘(k)’’ and inserting ‘‘(k)(1)’’;
and
(2) by adding at the end the following new
paragraph:
‘‘(2) For purposes of subsections (a) and (b), the use
of any domestic merchandise acquired in exchange for a
drawback product of the same kind and quality shall be
treated as the use of such drawback product if no certifi-
cate of delivery or certificate of manufacture and delivery
pertaining to such drawback product is issued, other than
that which documents the product’s manufacture and de-
livery. As used in this paragraph, the term ‘drawback
product’ means any domestically produced product manu-
factured with imported merchandise that is subject to
drawback.’’.
SEC. 104. PACKAGING MATERIAL.
Section 313(q) of the Tariff Act of 1930 (19 U.S.C.
1313(q)), is amended to read as follows: