155 
lows through ‘‘99 percent of that duty, tax, 
or fee’’ and inserting ‘‘an amount cal-
culated pursuant to regulations prescribed 
by the Secretary of the Treasury under 
subsection (l) shall be refunded as draw-
back’’; and 
(ii) by striking the last sentence and 
inserting the following: ‘‘Notwithstanding 
subparagraph (A), drawback shall be al-
lowed under this paragraph with respect to 
wine if the imported wine and the exported 
wine are of the same color and the price 
variation between the imported wine and 
the exported wine does not exceed 50 per-
cent. Transfers of merchandise may be evi-
denced by business records kept in the nor-
mal course of business and no additional 
certificates of transfer shall be required.’’; 
and 
(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: 
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156 
‘‘(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 
‘‘(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-
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157 
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 
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. 
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158 
‘‘(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 
date provided for in section 406(q)(2)(B) of 
that Act), the Secretary shall prescribe regula-
tions 
for 
determining 
the 
calculation 
of 
amounts refunded as drawback under this sec-
tion. 
‘‘(B) REQUIREMENTS.—The regulations 
required by subparagraph (A) for determining 
the calculation of amounts refunded as draw-
back under this section shall provide for a re-
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159 
fund of up to 99 percent of the duties, taxes, 
and fees paid with respect to the imported mer-
chandise, except that where there is substi-
tution of the merchandise or article, then— 
‘‘(i) in the case of an article that is 
exported, the amount of the refund shall 
be equal to 99 percent of the lesser of— 
‘‘(I) the amount of duties, taxes, 
and fees paid with respect to the im-
ported merchandise; or 
‘‘(II) the amount of duties, taxes, 
and fees that would apply to the ex-
ported article if the exported article 
were imported; and 
‘‘(ii) in the case of an article that is 
destroyed, the amount of the refund shall 
be an amount that is— 
‘‘(I) equal to 99 percent of the 
lesser of— 
‘‘(aa) the amount of duties, 
taxes, and fees paid with respect 
to the imported merchandise; and 
‘‘(bb) the amount of duties, 
taxes, and fees that would apply 
to the destroyed article if the de-
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