[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2120 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2120

To amend section 313 of the Tariff Act of 1930 to modify the provisions 
          relating to drawback claims, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 12, 2002

  Mr. Breaux (for himself and Ms. Landrieu) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend section 313 of 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 Representatives 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                    ``(B) which has been entered or withdrawn for 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 
                        specifications, shipped without the consent of 
                        the consignee, or determined to be defective 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 supervision of the 
                Customs Service,
        the full amount of the duties paid upon such merchandise, less 
        1 percent, shall be refunded as drawback.
            ``(2) Designation of import entries.--Notwithstanding 
        paragraph (1), for purposes of paragraph (1)(C)(ii), drawback 
        may be claimed by designating any entry of merchandise that was 
        imported within 1 year before the date of exportation or 
        destruction of the merchandise described in paragraph (1) under 
        the supervision of the Customs Service. The returned 
        merchandise, at the time of its importation, must be 
        commercially interchangeable with the merchandise designated 
        for drawback.
            ``(3) When drawback certificates not required.--For 
        purposes of this subsection, drawback certificates are not 
        required if the drawback claimant 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(j)), is 
amended--
            (1) by striking ``No'' and inserting ``Unless otherwise 
        provided for in this section, no''; and
            (2) by inserting ``, or destroyed under the supervision 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 certificate 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 delivery. As used in this paragraph, 
        the term `drawback product' means any domestically produced 
        product manufactured 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:
    ``(q) Packaging Material.--
            ``(1) Packaging material under subsections (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 drawback under 
        subsection (j)(2), shall be eligible for drawback, upon 
        exportation or destruction, of 99 percent of any duty, tax, or 
        fee imposed under Federal law on such imported material.
            ``(2) Packaging material under subsections (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 substituted 
        merchandise used to manufacture or produce such material.
            ``(3) Contents.--Packaging material described in paragraphs 
        (1) and (2) shall be eligible for drawback whether or not they 
        contain articles or merchandise, and whether or not any 
        articles or merchandise 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 exportation 
        or destruction for purposes of applying subsection (a), (b), or 
        (c), or paragraph (1)(B) or (2)(C)(i) or 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 inserting the 
        following:
    ``(a) Liquidation.--
            ``(1) Entries for consumption.--Unless an entry of 
        merchandise for consumption is extended by statute or court 
        order, except as provided in section 751(a)(3), an entry of 
        merchandise for consumption not liquidated within 1 year from--
                    ``(A) the date of entry of such merchandise,
                    ``(B) the date of the final withdrawal of all such 
                merchandise covered by a warehouse entry,
                    ``(C) the date of withdrawal from warehouse 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 section 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(c), 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 enactment 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 refund of duties 
        owed pursuant to paragraph (1) or (2) shall be made to the 
        importer of record or drawback claimant, as the case may be, 
        not later than 90 days after liquidation.
    ``(b) Extension.--The Secretary may extend the period in which to 
liquidate an entry if--
            ``(1) the information needed for the proper appraisement or 
        classification of the imported or withdrawn merchandise, or for 
        determining the correct drawback amount, or for ensuring 
        compliance with applicable law, is not available to the Customs 
        Service; or
            ``(2) the importer of record or drawback claimant, 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 inserting ``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 section 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 enactment.

       TITLE II--LIQUIDATION OR RELIQUIDATION 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 provision 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 described 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 reliquidation 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 (designated as port of entry 2304), 
Hidalgo, Texas (designated as port of entry 2305), and Wilmington, 
Delaware (designated as port of entry 1103), are as follows:

      

------------------------------------------------------------------------
                              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
      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
------------------------------------------------------------------------

                                 <all>