[Title 19 CFR Q]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 19 - CUSTOMS DUTIES]
[Chapter I - UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY]
[Part 191 - DRAWBACK]
[Subpart Q - Substitution of Finished Petroleum Derivatives]
[From the U.S. Government Printing Office]


19CUSTOMS DUTIES22002-04-012002-04-01falseQSubpart QCUSTOMS DUTIESUNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURYDRAWBACK
        Subpart Q--Substitution of Finished Petroleum Derivatives



Sec. 191.171  General; Drawback allowance.

    (a) General. Section 313(p), of the Act, as amended (19 U.S.C. 
1313(p)), provides for drawback on the basis of qualified

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articles which consist of either imported duty-paid petroleum 
derivatives, or petroleum derivatives manufactured or produced in the 
United States and qualified for drawback under the manufacturing 
drawback law (19 U.S.C. 1313(a) or (b)).
    (b) Allowance of drawback. Drawback may be granted under 19 U.S.C. 
1313(p):
    (1) In cases where there is no manufacture, upon exportation of the 
imported article, an article of the same kind and quality, or any 
combination thereof; or
    (2) In cases where there is a manufacture or production, upon 
exportation of the manufactured or produced article, an article of the 
same kind and quality, or any combination thereof.



Sec. 191.172  Definitions.

    The following are definitions for purposes of this subpart only:
    (a) Qualified article. ``Qualified article'' means an article 
described in headings 2707, 2708, 2710 through 2715, 2901, 2902, or 3901 
through 3914 of the Harmonized Tariff Schedule of the United States 
(HTSUS). In the case of headings 3901 through 3914, the definition is 
limited as those headings apply to liquids, pastes, powders, granules 
and flakes.
    (b) Same kind and quality article. ``Same kind and quality article'' 
means an article which is commercially interchangeable with, or which is 
referred to under the same 8-digit classification of the HTSUS as, the 
article to which it is compared. (For example, unleaded gasoline and jet 
fuel (naphtha or kerosene-type), both falling under the same HTSUS 
classification (2710.00.15) would be considered same kind and quality 
articles because they fall under the same 8 digit HTSUS classification, 
even though they are not ``commercially interchangeable''.)
    (c) Exported article. ``Exported article'' means an article which 
has been exported and is the qualified article, an article of the same 
kind and quality as the qualified article, or any combination thereof.



Sec. 191.173  Imported duty-paid derivatives (no manufacture).

    When the basis for drawback under 19 U.S.C. 1313(p) is imported 
duty-paid petroleum derivatives (that is, not articles manufactured 
under 19 U.S.C. 1313(a) or (b)), the requirements for drawback are as 
follows:
    (a) Imported duty-paid merchandise. The imported duty-paid 
merchandise designated for drawback must be a ``qualified article'' as 
defined in Sec. 191.172(a) of this subpart;
    (b) Exported article. The exported article on which drawback is 
claimed must be an ``exported article'' as defined in Sec. 191.172(c) of 
this subpart;
    (c) Exporter. The exporter of the exported article must have either:
    (1) Imported the qualified article in at least the quantity of the 
exported article; or
    (2) Purchased or exchanged (directly or indirectly) from an importer 
an imported qualified article in at least the quantity of the exported 
article;
    (d) Time of export. The exported article must be exported within 180 
days after the date of entry of the designated imported duty-paid 
merchandise; and
    (e) Amount of drawback. The amount of drawback payable may not 
exceed the amount of drawback which would be attributable to the 
imported qualified article which serves as the basis for drawback. 
Drawback due under this paragraph shall not be subject to the deduction 
of 1 percent.



Sec. 191.174  Derivatives manufactured under 19 U.S.C. 1313(a) or (b).

    When the basis for drawback under 19 U.S.C. 1313(p) is petroleum 
derivatives which were manufactured or produced in the United States and 
qualify for drawback under the manufacturing drawback law (19 U.S.C. 
1313(a) or (b)), the requirements for drawback are as follows:
    (a) Merchandise. The merchandise which is the basis for drawback 
under 19 U.S.C. 1313(p) must:
    (1) Have been manufactured or produced as described in 19 U.S.C. 
1313(a) or (b) from crude petroleum or a petroleum derivative; and
    (2) Be a ``qualified article'' as defined in Sec. 191.172(a) of this 
subpart;
    (b) Exported article. The exported article on which drawback is 
claimed must be an ``exported article'' as defined in Sec. 191.172(c) of 
this subpart;

[[Page 569]]

    (c) Exporter. The exporter of the exported article must have either:
    (1) Manufactured or produced the qualified article in at least the 
quantity of the exported article; or
    (2) Purchased or exchanged (directly or indirectly) from a 
manufacturer or producer described in 19 U.S.C. 1313(a) or (b) the 
qualified article in at least the quantity of the exported article;
    (d) Manufacture in specific facility. The qualified article must 
have been manufactured or produced in a specific petroleum refinery or 
production facility which must be identified;
    (e) Time of export. The exported article must be exported either:
    (1) During the period provided for in the manufacturer's or 
producer's specific manufacturing drawback ruling (see Sec. 191.8 of 
this part) in which the qualified article is manufactured or produced; 
or
    (2) Within 180 days after the close of the period in which the 
qualified article is manufactured or produced; and
    (f) Amount of drawback. The amount of drawback payable may not 
exceed the amount of drawback which would be attributable to the article 
manufactured or produced under 19 U.S.C. 1313(a) or (b) which serves as 
the basis for drawback.



Sec. 191.175  Drawback claimant; maintenance of records.

    (a) Drawback claimant. A drawback claimant under 19 U.S.C. 1313(p) 
must be the exporter of the exported article, or the refiner, producer, 
or importer of that article. Any of these persons may designate another 
person to file the drawback claim.
    (b) Certificate of manufacture and delivery or delivery. A drawback 
claimant under 19 U.S.C. 1313(p) must provide a certificate of 
manufacture and delivery or a certificate of delivery, as applicable, 
establishing the drawback eligibility of the articles for which drawback 
is claimed.
    (c) Maintenance of records. The manufacturer, producer, importer, 
exporter and drawback claimant of the qualified article and the exported 
article must all maintain their appropriate records required by this 
part.



Sec. 191.176  Procedures for claims filed under 19 U.S.C. 1313(p).

    (a) Applicability. The general procedures for filing drawback claims 
shall be applicable to claims filed under 19 U.S.C. 1313(p) unless 
otherwise specifically provided for in this section.
    (b) Administrative efficiency, frequency of claims, and 
restructuring of claims. The procedures regarding administrative 
efficiency, frequency of claims, and restructuring of claims (as 
applicable, see Sec. 191.53 of this part) shall apply to claims filed 
under this subpart.
    (c) Imported duty-paid derivatives (no manufacture). When the basis 
for drawback under 19 U.S.C. 1313(p) is imported duty-paid petroleum 
(not articles manufactured under 19 U.S.C. 1313(a) or (b)), claims under 
this subpart may be paid and liquidated if:
    (1) The claim is filed on Customs Form 7551; and
    (2) The claimant provides a certification stating the basis (such as 
company records, or customer's written certification), for the 
information contained therein and certifying that:
    (i) The exported merchandise was exported within 180 days of entry 
of the designated, imported merchandise;
    (ii) The qualified article and the exported article are commercially 
interchangeable or both articles are subject to the same 8-digit HTSUS 
tariff classification;
    (iii) To the best of the claimant's knowledge, the designated 
imported merchandise, the qualified article and the exported article 
have not and will not serve as the basis of any other drawback claim;
    (iv) Evidence in support of the certification will be retained by 
the person providing the certification for 3 years after payment of the 
claim; and
    (v) Such evidence will be available for verification by Customs.
    (d) Derivatives manufactured under 19 U.S.C. 1313(a) or (b). When 
the basis for drawback under 19 U.S.C. 1313(p) is articles manufactured 
under 19 U.S.C. 1313(a) or (b), claims under this section may be paid 
and liquidated if:
    (1) The claim is filed on Customs Form 7551;
    (2) All documents required to be filed with a manufacturing claim 
under 19

[[Page 570]]

U.S.C. 1313(a) or (b) are filed with the claim;
    (3) The claim identifies the specific refinery or production 
facility at which the derivatives were manufactured or produced;
    (4) The claim states the period of manufacture for the derivatives; 
and
    (5) The claimant provides a certification stating the basis (such as 
company records or a customer's written certification), for the 
information contained therein and certifying that:
    (i) The exported merchandise was exported during the manufacturing 
period for the qualified article or within 180 days after the close of 
that period;
    (ii) The qualified article and the exported article are commercially 
interchangeable or both articles are subject to the same 8-digit HTSUS 
tariff classification;
    (iii) To the best of the claimant's knowledge, the designated 
imported merchandise, the qualified article and the exported article 
have not and will not serve as the basis of any other drawback claim;
    (iv) Evidence in support of the certification will be retained by 
the person providing the certification for 3 years after payment of the 
claim; and
    (v) Such evidence will be available for verification by Customs.