101 
‘‘(3) EVIDENCE OF TRANSFERS.—Transfers of 
merchandise under paragraph (1) may be evidenced 
by business records kept in the normal course of 
business and no additional certificates of transfer 
shall be required.’’. 
(d) PROOF OF EXPORTATION.—Section 313(i) of the 
Tariff Act of 1930 (19 U.S.C. 1313(i)) is amended to read 
as follows: 
‘‘(i) PROOF OF EXPORTATION.—A person claiming 
drawback under this section based on the exportation of 
an article shall provide proof of the exportation of the arti-
cle. Such proof of exportation— 
‘‘(1) shall establish fully the date and fact of 
exportation and the identity of the exporter; and 
‘‘(2) may be established through the use of 
records kept in the normal course of business or 
through an electronic export system of the United 
States Government, as determined by the Commis-
sioner responsible for U.S. Customs and Border 
Protection.’’. 
(e) UNUSED MERCHANDISE DRAWBACK.—Section 
313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is 
amended— 
(1) in paragraph (1)— 
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(A) in subparagraph (A), in the matter 
preceding clause (i)— 
(i) by striking ‘‘3-year’’ and inserting 
‘‘5-year’’; and 
(ii) by inserting ‘‘and before the draw-
back claim is filed’’ after ‘‘the date of im-
portation’’; and 
(B) in the flush text at the end, by striking 
‘‘99 percent of the amount of each duty, tax, or 
fee so paid’’ and inserting ‘‘an amount cal-
culated pursuant to regulations prescribed by 
the Secretary of the Treasury under subsection 
(l)’’; 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘paragraph (4)’’ and inserting 
‘‘paragraphs (4), (5), and (6)’’; 
(B) in subparagraph (A), by striking 
‘‘commercially interchangeable with’’ and in-
serting ‘‘classifiable under the same 8-digit 
HTS subheading number as’’; 
(C) in subparagraph (B)— 
(i) by striking ‘‘3-year’’ and inserting 
‘‘5-year’’; and 
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103 
(ii) by inserting ‘‘and before the draw-
back claim is filed’’ after ‘‘the imported 
merchandise’’; 
(D) in subparagraph (C)(ii), by striking 
subclause (II) and inserting the following: 
‘‘(II) received the imported mer-
chandise, other merchandise classifi-
able under the same 8-digit HTS sub-
heading number as such imported 
merchandise, or any combination of 
such imported merchandise and such 
other merchandise, directly or indi-
rectly from the person who imported 
and paid any duties, taxes, and fees 
imposed under Federal law upon im-
portation or entry and due on the im-
ported merchandise (and any such 
transferred merchandise, regardless of 
its origin, will be treated as the im-
ported merchandise and any retained 
merchandise will be treated as domes-
tic merchandise);’’; and 
(E) in the flush text at the end, by striking 
‘‘the amount of each such duty, tax, and fee’’ 
and all that follows through ‘‘99 percent of that 
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104 
duty, tax, or fee’’ and inserting ‘‘an amount 
calculated pursuant to regulations prescribed by 
the Secretary of the Treasury under subsection 
(l) shall be refunded as drawback’’; 
(3) in paragraph (3)(B), by striking ‘‘the com-
mercially interchangeable merchandise’’ and insert-
ing ‘‘merchandise classifiable under the same 8-digit 
HTS subheading number as such imported merchan-
dise’’; and 
(4) by adding at the end the following: 
‘‘(5)(A) For purposes of paragraph (2) and ex-
cept as provided in subparagraph (B), merchandise 
may not be substituted for imported merchandise for 
drawback purposes based on the 8-digit HTS sub-
heading number if the article description for the 8- 
digit HTS subheading number under which the im-
ported merchandise is classified begins with the term 
‘other’. 
‘‘(B) In cases described in subparagraph (A), 
merchandise may be substituted for imported mer-
chandise for drawback purposes if— 
‘‘(i) the other merchandise and such im-
ported merchandise are classifiable under the 
same 10-digit HTS statistical reporting num-
ber; and 
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105 
‘‘(ii) the article description for that 10- 
digit HTS statistical reporting number does not 
begin with the term ‘other’. 
‘‘(6)(A) For purposes of paragraph (2), a draw-
back claimant may use the first 8 digits of the 10- 
digit Schedule B number for merchandise or an arti-
cle to determine if the merchandise or article is clas-
sifiable under the same 8-digit HTS subheading 
number as the imported merchandise, without re-
gard to whether the Schedule B number corresponds 
to more than one 8-digit HTS subheading number. 
‘‘(B) In this paragraph, the term ‘Schedule B’ 
means the Department of Commerce Schedule B, 
Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States.’’. 
(f) LIABILITY
FOR DRAWBACK CLAIMS.—Section 
313(k) of the Tariff Act of 1930 (19 U.S.C. 1313(k)) is 
amended to read as follows: 
‘‘(k) LIABILITY FOR DRAWBACK CLAIMS.— 
‘‘(1) IN GENERAL.—Any person making a claim 
for drawback under this section shall be liable for 
the full amount of the drawback claimed. 
‘‘(2) LIABILITY OF IMPORTERS.—An importer 
shall be liable for any drawback claim made by an-
other person with respect to merchandise imported 
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106 
by the importer in an amount equal to the lesser 
of— 
‘‘(A) the amount of duties, taxes, and fees 
that the person claimed with respect to the im-
ported merchandise; or 
‘‘(B) the amount of duties, taxes, and fees 
that the importer authorized the other person 
to claim with respect to the imported merchan-
dise. 
‘‘(3) JOINT AND SEVERAL LIABILITY.—Persons 
described in paragraphs (1) and (2) shall be jointly 
and severally liable for the amount described in 
paragraph (2).’’. 
(g) REGULATIONS.—Section 313(l) of the Tariff Act 
of 1930 (19 U.S.C. 1313(l)) is amended to read as follows: 
‘‘(l) REGULATIONS.— 
‘‘(1) IN GENERAL.—Allowance of the privileges 
provided for in this section shall be subject to com-
pliance with such rules and regulations as the Sec-
retary of the Treasury shall prescribe. 
‘‘(2) CALCULATION OF DRAWBACK.— 
‘‘(A) IN
GENERAL.—Not later than the 
date that is 2 years after the date of the enact-
ment of the Trade Facilitation and Trade En-
forcement Act of 2015 (or, if later, the effective 
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109 
(h) SUBSTITUTION OF FINISHED PETROLEUM DE-
RIVATIVES.—Section 313(p) of the Tariff Act of 1930 (19 
U.S.C. 1313(p)) is amended— 
(1) by striking ‘‘Harmonized Tariff Schedule of 
the United States’’ each place it appears and insert-
ing ‘‘HTS’’; and 
(2) in paragraph (3)(A)— 
(A) in clause (ii)(III), by striking ‘‘, as so 
certified in a certificate of delivery or certificate 
of manufacture and delivery’’; and 
(B) in the flush text at the end— 
(i) by striking ‘‘, as so designated on 
the certificate of delivery or certificate of 
manufacture and delivery’’; and 
(ii) by striking the last sentence and 
inserting the following: ‘‘The party trans-
ferring the merchandise shall maintain 
records kept in the normal course of busi-
ness to demonstrate the transfer.’’. 
(i) PACKAGING MATERIAL.—Section 313(q) of the 
Tariff Act of 1930 (19 U.S.C. 1313(q)) is amended— 
(1) in paragraph (1), by striking ‘‘of 99 percent 
of any duty, tax, or fee imposed under Federal law 
on such imported material’’ and inserting ‘‘in an 
amount calculated pursuant to regulations pre-
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110 
scribed by the Secretary of the Treasury under sub-
section (l)’’; 
(2) in paragraph (2), by striking ‘‘of 99 percent 
of any duty, tax, or fee imposed under Federal law 
on the imported or substituted merchandise used to 
manufacture or produce such material’’ and insert-
ing ‘‘in an amount calculated pursuant to regula-
tions prescribed by the Secretary of the Treasury 
under subsection (l)’’; and 
(3) in paragraph (3), by striking ‘‘they contain’’ 
and inserting ‘‘it contains’’. 
(j) FILING OF DRAWBACK CLAIMS.—Section 313(r) 
of the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amend-
ed— 
(1) in paragraph (1)— 
(A) by striking the first sentence and in-
serting the following: ‘‘A drawback entry shall 
be filed or applied for, as applicable, not later 
than 5 years after the date on which merchan-
dise on which drawback is claimed was im-
ported.’’; 
(B) in the second sentence, by striking ‘‘3- 
year’’ and inserting ‘‘5-year’’; and 
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111 
(C) in the third sentence, by striking ‘‘the 
Customs Service’’ and inserting ‘‘U.S. Customs 
and Border Protection’’; 
(2) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘The Customs Service’’ and in-
serting ‘‘U.S. Customs and Border Protec-
tion’’; 
(ii) in clauses (i) and (ii), by striking 
‘‘the Customs Service’’ each place it ap-
pears and inserting ‘‘U.S. Customs and 
Border Protection’’; and 
(iii) in clause (ii)(I), by striking ‘‘3- 
year’’ and inserting ‘‘5-year’’; and 
(B) in subparagraph (B), by striking ‘‘the 
periods of time for retaining records set forth 
in subsection (t) of this section and’’ and in-
serting ‘‘the period of time for retaining records 
set forth in’’; and 
(3) by adding at the end the following: 
‘‘(4) All drawback claims filed on and after the 
date that is 2 years after the date of the enactment 
of the Trade Facilitation and Trade Enforcement 
Act of 2015 (or, if later, the effective date provided 
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112 
for in section 406(q)(2)(B) of that Act) shall be filed 
electronically.’’. 
(k) DESIGNATION
OF
MERCHANDISE
BY
SUC-
CESSOR.—Section 313(s) of the Tariff Act of 1930 (19 
U.S.C. 1313(s)) is amended— 
(1) in paragraph (2), by striking subparagraph 
(B) and inserting the following: 
‘‘(B) subject to paragraphs (5) and (6) of 
subsection (j), imported merchandise, other 
merchandise classifiable under the same 8-digit 
HTS subheading number as such imported 
merchandise, or any combination of such im-
ported merchandise and such other merchan-
dise, that the predecessor received, before the 
date of succession, from the person who im-
ported and paid any duties, taxes, and fees due 
on the imported merchandise;’’; and 
(2) in paragraph (4), by striking ‘‘certifies 
that’’ and all that follows and inserting ‘‘certifies 
that the transferred merchandise was not and will 
not be claimed by the predecessor.’’. 
(l) DRAWBACK CERTIFICATES.—Section 313 of the 
Tariff Act of 1930 (19 U.S.C. 1313) is amended by strik-
ing subsection (t). 
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113 
(m) DRAWBACK FOR RECOVERED MATERIALS.—Sec-
tion 313(x) of the Tariff Act of 1930 (19 U.S.C. 1313(x)) 
is amended by striking ‘‘and (c)’’ and inserting ‘‘(c), and 
(j)’’. 
(n) DEFINITIONS.—Section 313 of the Tariff Act of 
1930 (19 U.S.C. 1313) is amended by adding at the end 
the following: 
‘‘(z) DEFINITIONS.—In this section: 
‘‘(1) DIRECTLY.—The term ‘directly’ means a 
transfer of merchandise or an article from one per-
son to another person without any intermediate 
transfer. 
‘‘(2) HTS.—The term ‘HTS’ means the Har-
monized Tariff Schedule of the United States. 
‘‘(3) INDIRECTLY.—The term ‘indirectly’ means 
a transfer of merchandise or an article from one per-
son to another person with one or more intermediate 
transfers.’’. 
(o) RECORDKEEPING.—Section 508(c)(3) of the Tar-
iff Act of 1930 (19 U.S.C. 1508(c)(3)) is amended— 
(1) by striking ‘‘3rd’’ and inserting ‘‘5th’’; and 
(2) by striking ‘‘payment’’ and inserting ‘‘liq-
uidation’’. 
(p) GOVERNMENT ACCOUNTABILITY OFFICE RE-
PORT.— 
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114 
(1) IN
GENERAL.—Not later than one year 
after the issuance of the regulations required by sub-
section (l)(2) of section 313 of the Tariff Act of 
1930, as added by subsection (g), the Comptroller 
General of the United States shall submit to the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives a report on the modernization of draw-
back and refunds under section 313 of the Tariff 
Act of 1930, as amended by this section. 
(2) CONTENTS.—The report required by para-
graph (1) include the following: 
(A) An assessment of the modernization of 
drawback and refunds under section 313 of the 
Tariff Act of 1930, as amended by this section. 
(B) A description of drawback claims that 
were permissible before the effective date pro-
vided for in subsection (q) that are not permis-
sible after that effective date and an identifica-
tion of industries most affected. 
(C) A description of drawback claims that 
were not permissible before the effective date 
provided for in subsection (q) that are permis-
sible after that effective date and an identifica-
tion of industries most affected. 
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