TFTEA Drawback Claims Accelerated Payment Processing Regulations Are Now Effective

December 17, 2018

Today in CSMS #18-000737, CBP announced that the Modernized Drawback Final Rule has been posted online for public inspection and that the regulations necessary for CBP to begin processing payments for Accelerated Payment (AP) on TFTEA drawback claims are now effective. The final rule can be viewed here. 

CBP is returning certain TFTEA drawback claims to trade control in anticipation that these claims will be resubmitted with a request for AP.

Below lists the process for resubmitting TFTEA drawback claims with a request for AP:

1. TFTEA claims with bond information on file will be placed in trade control.
2. The filer will select the AP indicator.
3. The filer will resubmit the claim.

Resubmission will not change the original claim date, and claimant must have the appropriate approved privileges on file. Upon claim acceptance by CBP, AP processing will take place generally within 3 weeks of the claim resubmission date.

If a TFTEA claim with 1A bond data was accepted by CBP prior to December 17, 2018 and the claim is not returned to trade control as noted above, claimant should email the claim number to the OT mailbox – OTDRAWBACK@cbp.dhs.gov.

Certain claims require additional steps to request AP as outlined below:

1. TFTEA manufacturing claims – Trade must update claims on file with the new manufacturing ruling number after receiving an approval letter for TFTEA modification from CBP. Once the claims are updated with the new ruling number, claimants should select the AP indicator and resubmit the claim.
2. TFTEA substitution drawback claims potentially subject to limitations on internal revenue tax refunds (accounting class code 365) – Trade is advised not to submit additional AP claims with the accounting class code 365 until notified by CBP to do so. If an AP claim is submitted prior to notification from CBP to do so, there is a risk of bond decrementation and loss of AP for the life of the claims. The above guidance regarding TFTEA substitution claims with class code 365 does not apply to the Oil Spill Tax and the Harbor Maintenance Tax.

For further information or questions about this or other customs issues, contact George R. Tuttle, III at geo@tuttlelaw.com or at (415) 986-8780.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in the San Francisco Bay Area.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

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