H. R. 3450—137
(D) by striking out ‘‘wheat imported after ninety days
after the date of the enactment of this Act’’ and inserting
‘‘imported wheat’’.
(2) Subsection (b) is amended—
(A) by striking out ‘‘duty-free or domestic merchandise’’
and inserting ‘‘any other merchandise (whether imported
or domestic)’’;
(B) by inserting ‘‘, or destruction under customs super-
vision,’’ after ‘‘there shall be allowed upon the exportation’’;
(C) by inserting ‘‘or destroyed’’ after ‘‘notwithstanding
the fact that none of the imported merchandise may actu-
ally have been used in the manufacture or production of
the exported’’;
(D) by inserting ‘‘, but only if those articles have not
been used prior to such exportation or destruction’’ after
‘‘an amount of drawback equal to that which would have
been allowable had the merchandise used therein been
imported’’; and
(E) by inserting ‘‘or destruction under customs super-
vision’’ after ‘‘but the total amount of drawback allowed
upon the exportation’’.
(3) Subsection (c) is amended to read as follows:
‘‘(c) MERCHANDISE NOT CONFORMING TO SAMPLE OR SPECIFICA-
TIONS.—Upon the exportation, or destruction under the supervision
of the Customs Service, of merchandise—
‘‘(1) not conforming to sample or specifications, shipped
without the consent of the consignee, or determined to be
defective as of the time of importation;
‘‘(2) upon which the duties have been paid;
‘‘(3) which has been entered or withdrawn for consumption;
and
‘‘(4) which, within 3 years after release from the custody
of the Customs Service, has been returned to the custody of
the Customs Service for exportation or destruction under the
supervision of the Customs Service;
the full amount of the duties paid upon such merchandise, less
1 percent, shall be refunded as drawback.’’.
(4) Subsection (j) is amended to read as follows:
‘‘(j) UNUSED MERCHANDISE DRAWBACK.—
‘‘(1) If imported merchandise, on which was paid any duty,
tax, or fee imposed under Federal law because of its
importation—
‘‘(A) is, before the close of the 3-year period beginning
on the date of importation—
‘‘(i) exported, or
‘‘(ii) destroyed under customs supervision; and
‘‘(B) is not used within the United States before such
exportation or destruction;
then upon such exportation or destruction 99 percent of the
amount of each duty, tax, or fee so paid shall be refunded
as drawback. The exporter (or destroyer) has the right to claim
drawback under this paragraph, but may endorse such right
to the importer or any intermediate party.
‘‘(2) If there is, with respect to imported merchandise on
which was paid any duty, tax, or fee imposed under Federal
law because of its importation, any other merchandise (whether
imported or domestic), that—
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H. R. 3450—138
‘‘(A) 
is 
commercially 
interchangeable 
with 
such
imported merchandise;
‘‘(B) is, before the close of the 3-year period beginning
on the date of importation of the imported merchandise,
either exported or destroyed under customs supervision;
and
‘‘(C) before such exportation or destruction—
‘‘(i) is not used within the United States, and
‘‘(ii) is in the possession of, including ownership
while in bailment, in leased facilities, in transit to,
or in any other manner under the operational control
of, the party claiming drawback under this paragraph,
if that party—
‘‘(I) is the importer of the imported merchan-
dise, or
‘‘(II) received from the person who imported
and paid any duty due on the imported merchan-
dise a certificate of delivery transferring to the
party the imported merchandise, commercially
interchangeable merchandise, or any combination
of imported and commercially interchangeable
merchandise (and any such transferred merchan-
dise, regardless of its origin, will be treated as
the imported merchandise and any retained mer-
chandise will be treated as domestic merchandise);
then upon the exportation or destruction of such other
merchandise the amount of each such duty, tax, and fee
paid regarding the imported merchandise shall be refunded
as drawback, but in no case may the total drawback on
the imported merchandise, whether available under this
paragraph or any other provision of law or any combination
thereof, exceed 99 percent of that duty, tax, or fee.
‘‘(3) The performing of any operation or combination of
operations (including, but not limited to, testing, cleaning,
repacking, inspecting, sorting, refurbishing, freezing, blending,
repairing, reworking, cutting, slitting, adjusting, replacing
components, relabeling, disassembling, and unpacking), not
amounting to manufacture or production for drawback purposes
under the preceding provisions of this section on—
‘‘(A) the imported merchandise itself in cases to which
paragraph (1) applies, or
‘‘(B) the commercially interchangeable merchandise in
cases to which paragraph (2) applies,
shall not be treated as a use of that merchandise for purposes
of applying paragraph (1)(B) or (2)(C).’’.
(5) Subsection (l) is amended by striking out ‘‘the fixing
of a time limit within which drawback entries or entries for
refund under any of the provisions of this section or section
309(b) shall be filed and completed,’’ and inserting ‘‘the author-
ity for the electronic submission of drawback entries’’.
(6) Subsection (p) is amended to read as follows:
‘‘(p) SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
this section, if—
‘‘(A) an article (hereafter referred to in this subsection
as the ‘exported article’) of the same kind and quality
as a qualified article is exported;
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H. R. 3450—139
‘‘(B) the requirements set forth in paragraph (2) are
met; and
‘‘(C) a drawback claim is filed regarding the exported
article;
the amount of the duties paid on, or attributable to, such
qualified article shall be refunded as drawback to the drawback
claimant.
‘‘(2) REQUIREMENTS.—The requirements referred to in para-
graph (1) are as follows:
‘‘(A) The exporter of the exported article—
‘‘(i) manufactured or produced the qualified article
in a quantity equal to or greater than the quantity
of the exported article,
‘‘(ii) purchased or exchanged, directly or indirectly,
the qualified article from a manufacturer or producer
described in subsection (a) or (b) in a quantity equal
to or greater than the quantity of the exported article,
‘‘(iii) imported the qualified article in a quantity
equal to or greater than the quantity of the exported
article, or
‘‘(iv) purchased or exchanged, directly or indirectly,
an imported qualified article from an importer in a
quantity equal to or greater than the quantity of the
exported article.
‘‘(B) In the case of the requirement described in
subparagraph (A)(ii), the manufacturer or producer pro-
duced the qualified article in a quantity equal to or greater
than the quantity of the exported article.
‘‘(C) In the case of the requirement of subparagraph
(A)(i) or (A)(ii), the exported article is exported during
the period that the qualified article described in subpara-
graph (A)(i) or (A)(ii) (whichever is applicable) is manufac-
tured or produced, or within 180 days after the close of
such period.
‘‘(D) In the case of the requirement of subparagraph
(A)(i) or (A)(ii), the specific petroleum refinery or production
facility which made the qualified article concerned is identi-
fied.
‘‘(E) In the case of the requirement of subparagraph
(A)(iii) or (A)(iv), the exported article is exported within
180 days after the date of entry of an imported qualified
article described in subparagraph (A)(iii) or (A)(iv) (which-
ever is applicable).
‘‘(F) Except as otherwise specifically provided in this
subsection, the drawback claimant complies with all
requirements of this section, including providing certifi-
cates which establish the drawback eligibility of articles
for which drawback is claimed.
‘‘(G) The manufacturer, producer, importer, exporter,
and drawback claimant of the qualified article and the
exported article maintain all records required by regulation.
‘‘(3) DEFINITION OF QUALIFIED ARTICLE, ETC.—For purposes
of this subsection—
‘‘(A) The term ‘qualified article’ means an article—
‘‘(i) described in—
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H. R. 3450—140
‘‘(I) headings 2707, 2708, 2710, 2711, 2712,
2713, 2714, 2715, 2901, and 2902 of the Har-
monized Tariff Schedule of the United States, or
‘‘(II) headings 3901 through 3914 of such
Schedule (as such headings apply to liquids,
pastes, powders, granules, and flakes), and
‘‘(ii) which is—
‘‘(I) manufactured or produced as described
in subsection (a) or (b) from crude petroleum or
a petroleum derivative, or
‘‘(II) imported duty-paid.
‘‘(B) An exported article is of the same kind and quality
as the qualified article for which it is substituted under
this subsection if it is a product that is commercially inter-
changeable with or referred to under the same eight-digit
classification of the Harmonized Tariff Schedule of the
United States as the qualified article.
‘‘(C) The term ‘drawback claimant’ means the exporter
of the exported article or the refiner, producer, or importer
of such article. Any person eligible to file a drawback
claim under this subparagraph may designate another per-
son to file such claim.
‘‘(4) LIMITATION ON DRAWBACK.—The amount of drawback
payable under this subsection shall not exceed the amount
of drawback that would be attributable to the article—
‘‘(A) manufactured or produced under subsection (a)
or (b) by the manufacturer or producer described in clause
(i) or (ii) of paragraph (2)(A), or
‘‘(B) imported under clause (iii) or (iv) of paragraph
(2)(A).’’.
(7) The following new subsections are inserted after sub-
section (p):
‘‘(q) PACKAGING MATERIAL.—Packaging material, when used
on or for articles or merchandise exported or destroyed under sub-
section (a), (b), (c), or (j), shall be eligible under such subsection
for refund, as drawback, of 99 percent of any duty, tax, or fee
imposed under Federal law on the importation of such material.
‘‘(r) FILING DRAWBACK CLAIMS.—
‘‘(1) A drawback entry and all documents necessary to
complete a drawback claim, including those issued by the Cus-
toms Service, shall be filed or applied for, as applicable, within
3 years after the date of exportation or destruction of the
articles on which drawback is claimed, except that any landing
certificate required by regulation shall be filed within the time
limit prescribed in such regulation. Claims not completed within
the 3-year period shall be considered abandoned. No extension
will be granted unless it is established that the Customs Service
was responsible for the untimely filing.
‘‘(2) A drawback entry for refund filed pursuant to any
subsection of this section shall be deemed filed pursuant to
any other subsection of this section should it be determined
that drawback is not allowable under the entry as originally
filed but is allowable under such other subsection.
‘‘(s) DESIGNATION OF MERCHANDISE BY SUCCESSOR.—
‘‘(1) For purposes of subsection (b), a drawback successor
may designate imported merchandise used by the predecessor
before the date of succession as the basis for drawback on
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H. R. 3450—141
articles manufactured by the drawback successor after the date
of succession.
‘‘(2) For purposes of subsection (j)(2), a drawback successor
may designate—
‘‘(A) imported merchandise which the predecessor,
before the date of succession, imported; or
‘‘(B) imported merchandise, commercially interchange-
able merchandise, or any combination of imported and
commercially interchangeable merchandise for which the
successor received, before the date of succession, from the
person who imported and paid any duty due on the
imported merchandise a certificate of delivery transferring
to the successor such merchandise;
as the basis for drawback on merchandise possessed by the
drawback successor after the date of succession.
‘‘(3) For purposes of this subsection, the term ‘drawback
successor’ means an entity to which another entity (in this
subsection referred to as the ‘predecessor’) has transferred by
written agreement, merger, or corporate resolution—
‘‘(A) all or substantially all of the rights, privileges,
immunities, powers, duties, and liabilities of the prede-
cessor; or
‘‘(B) the assets and other business interests of a divi-
sion, plant, or other business unit of such predecessor,
but only if in such transfer the value of the transferred
realty, personalty, and intangibles (other than drawback
rights, inchoate or otherwise) exceeds the value of all trans-
ferred drawback rights, inchoate or otherwise.
‘‘(4) No drawback shall be paid under this subsection until
either the predecessor or the drawback successor (who shall
also certify that it has the predecessor’s records) certifies that—
‘‘(A) the transferred merchandise was not and will
not be claimed by the predecessor, and
‘‘(B) the predecessor did not and will not issue any
certificate to any other person that would enable that per-
son to claim drawback.
‘‘(t) DRAWBACK CERTIFICATES.—Any person who issues a certifi-
cate which would enable another person to claim drawback shall
be subject to the recordkeeping provisions of this chapter, with
the retention period beginning on the date that such certificate
is issued.
‘‘(u) ELIGIBILITY OF ENTERED OR WITHDRAWN MERCHANDISE.—
Imported merchandise that has not been regularly entered or with-
drawn for consumption shall not satisfy any requirement for use,
exportation, or destruction under this section.
‘‘(v) MULTIPLE
DRAWBACK
CLAIMS.—Merchandise that is
exported or destroyed to satisfy any claim for drawback shall not
be the basis of any other claim for drawback; except that appropriate
credit and deductions for claims covering components or ingredients
of such merchandise shall be made in computing drawback pay-
ments.’’.
(b) APPLICATION
OF AMENDMENT
TO FINISHED PETROLEUM
DERIVATIVES.—Notwithstanding section 514 of the Tariff Act of
1930 (19 U.S.C. 1514) or any other provision of law, the amendment
made by paragraph (6) of subsection (a) shall apply to—
(1) claims filed or liquidated on or after January 1, 1988,
and
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