lowance of drawback of any of the lots shown by the customs records to be unaccounted for at the time of withdrawal.

(g) The builder of a vessel or aircraft upon which drawback is to be claimed under section 313 (g), Tariff Act of 1930, shall keep the records provided for in this section so far as applicable. An abstract of such records shall be filed with the collector of customs at the headquarters port of the collection district in which the vessel or aircraft is built in ample time prior to the first departure of the vessel or aircraft from the United States to enable that officer to have the abstract verified by examination of the vessel or aircraft and the builder's records pertaining thereto.

(h) Each manufacturer or producer shall submit to the Commissioner of Customs through the supervising customs agents a statement in triplicate describing the methods which he will follow and the records which he will keep for the purpose of establishing that the articles upon which drawback will be claimed have been manufactured or produced in the United States with the use of imported duty-paid merchandise within the meaning of section 313 (a), Tariff Act of 1930, and that the records of identification, manufacture or production, and storage prescribed by this section have been maintained. The statement shall contain an agreement to follow the methods and keep the records described therein with respect to all articles manufactured or produced for exportation with benefit of drawback. Provision for the use of duty-paid merchandise or drawback products, the manufacture or production of articles not specified in the application for the rate, or the use of factories not named therein may be included in the statement prepared as a result of such application. The same procedure shall apply in the case of vessels built for foreign account and ownership or for the government of any foreign country.

(i) If drawback entries are to be liquidated at more than one headquarters port, two additional copies of the statement and of the investigating officer's report shall be required for each additional port. The procedure outlined in this and the preceding paragraph shall be followed, so far as applicable, when applications for amendments of drawback rates or supplemental statements or schedules or supplemental ad

visory schedules are filed in accordance with paragraph (o), (p), or (q) of this section.

(j) If the statement shows that the methods and records described therein enable the manufacturer or producer to comply with the law and regulations and if the facts developed by the investigation warrant such action, the Bureau will issue the rate of drawback on the articles described in the statement.

(k) Each person who keeps complementary records as provided for in paragraph (e) of this section shall file a statement describing such records in accordance with the procedure prescribed for manufacturers and producers in paragraph (h) of this section. Such statement shall be subject to the provisions of paragraphs (i) and (j) of this section.

(1) Drawback entries may be filed covering articles exported on or after the date on which the application for establishment of the drawback rate was received by the collector or deputy collector of customs, but such entries shall not be liquidated until the rate has been established.

(m) When the rate has been established, drawback may be allowed on articles manufactured or produced in accordance therewith and exported on or after the effective date named therein provided all pertinent regulations have been complied with.

(n) In no case shall drawback be allowed on articles provided for in a rate of drawback which were exported before the date of receipt by the collector or deputy collector of the application which resulted in the preparation of the statement on which the rate was based.

(0) When a manufacturer or producer in whose behalf a rate of drawback has been established desires to have his rate amended to cover additional articles, to include additional factories, to permit the use of other kinds of imported duty-paid merchandise or drawback products, to provide for a different basis for the liquidation of the drawback entries, or to cover different methods of identification, manufacture, or other changes, he shall file an application therefor with the collector or deputy collector. The procedure and conditions in connection therewith shall be as prescribed in the case of original applications. No drawback shall be allowed on articles exported before the date on

which the application was received by the collector or deputy collector unless specifically authorized by the Bureau.

(p) When a rate of drawback provides that the drawback allowance shall be determined on the basis of a schedule filed by the manufacturer or producer showing the quantity of imported material used or appearing in each unit of finished articles, and the rate authorizes the filing of supplemental schedules showing changes in the quantity of imported materials used or appearing in each unit, or different styles or capacities of containers, such supplemental schedules shall be filed with the collector or deputy collector of customs. Drawback may be allowed on the articles covered by a supplemental schedule after it has been verified by an investigating officer and approved by the collector.

(q) In cases where the drawback allowance is determined on a quantityused or appearing-in basis, collectors of customs may request, for the information of liquidating officers in addition to the information required to be filed with the drawback entry, a supplemental advisory schedule showing the quantity of importing merchandise used or appearing in each unit of finished articles. Such schedules shall be filed with the collector or deputy collector of customs. Drawback may be allowed on articles covered by a supplemental advisory schedule after it has been verified by an investigating officer and approved by the collector.

[13 F. R. 8080, Dec. 18, 1948, as amended by T. D. 52377, 15 F. R. 58, Jan. 7, 1950; T. D. 52395, 15 F. R. 584, Feb. 2, 1950; T. D. 52490, 15 F. R. 3621, June 9, 1950; T. D. 52894, 17 F. R. 14, Jan. 1, 1952; T. D. 53268, 18 F. R. 3094, May 29, 1952; T. D. 53336, 18 F. R. 5424, Sept. 9, 1953]

§ 22.5 Identification of imported merchandise and ascertainment of quantities for allowance of drawback when substituted merchandise is used. (a) Articles manufactured or produced in accordance with section 313 (b), Tariff Act of 1930, as amended, with the use of sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or with the use of articles manufactured or produced in the United States with the use of such merchandise shall be subject to the applicable provision of this part and the records of the manufacturer or producer shall show:

(1) The quantity, identity, kind, and quality of the duty-paid sugar, metal,

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ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or of the articles manufactured or produced under drawback regulations with the use of such merchandise (hereinafter referred to as designated merchandise) designated as the basis for the allowance of drawback on the exported articles;

(2) That such designated merchandise was used by the manufacturer or producer of the exported articles within 3 years after the date on which it was received by such manufacturer or producer;

(3) That the exported articles on which drawback is claimed were manufactured or produced with the use of sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or domestic products of any of the foregoing, as the case may be, of the same kind and quality as the designated merchandise;

(4) That the exported articles were manufactured or produced within 3 years after the date on which the designated merchandise was received by the manufacturer or producer of the exported articles;

(5) That duty-free or domestic merchandise of the same kind and quality as the designated merchandise was used by the manufacturer or producer of the exported articles within 3 years after the date on which the designated merchandise was received by such manufacturer or producer; and

(6) The quantity of sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or domestic products of any of the foregoing, of the same kind and quality as designated merchandise, used in the manufacture or production of the exported articles.

(b) When valuable wastes are incurred in manufacture or production and the manufacturer or producer has not limited his claims to the quantity of sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or domestic products of any of the foregoing appearing in the articles manufactured or produced for exportation with benefit of drawback, the records shall show the quantity and value of the merchandise used in the manufacture or production of the articles and the quantity and value of the waste incurred in order that the deduction provided for in § 22.4 (a) may be made in liquidation.

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(c) Duty-paid sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or articles manufactured or produced under drawback regulations with the use of such merchandise which have been used at one plant of a manufacturer or producer within 3 years after the date on which such material was received by such manufacturer or producer may be designated as the basis for the allowance of drawback on articles manufactured or produced in accordance with the regulations in this part at other plants of the same manufacturer or producer.

(d) Drawback shall be allowed although the exported articles are not of the same kind and quality as the articles which were manufactured or produced with the use of the designated merchandise, provided such exported articles were manufactured or produced with the use of sugar, metal, ore containing metal, flaxseed or linseed, or flaxseed or linseed oil, or domestic products of any of the foregoing of the same kind and quality as the designated merchandise.

[13 F. R. 8081, Dec. 18, 1948, as amended by T. D. 52826, 16 F. R. 9803, Sept. 27, 1951; T. D. 53336, 18 F. R. 5424, Sept. 9, 1953; T. D. 53399, 18 F. R. 8690, Dec. 24, 1953]

§ 22.6 General drawback rates in effect-(a) Bags and meat wrappers. Drawback may be allowed on the exportation of bags or meat wrappers manufactured with the use of imported burlap or other textile material, subject to the following special regulations:

(1) Each lot of imported material received by a manufacturer shall be given a lot number and kept separate from other lots until used. The records of the manufacturer shall show, as to each manufacturing lot or period of manufacture, the quantity of material used from each import lot and the number of each kind and size of bags or meat wrappers obtained. A certificate of manufacture shall be filed covering each manufacturing lot or period of manufacture.

(2) All bags or meat wrappers manufactured for the account of the same exporter during a specified period may be designated as one manufacturing lot and covered by one certificate of manufacture and delivery. All exported bags or meat wrappers shall be identified by the exporter with the certificate of manufacture covering their manufacture.

(3) The drawback allowance shall not exceed 99 percent of the duty paid on

the imported material appearing in the exported bags or meat wrappers, unless the manufacturer desires an allowance for waste and so specifies in his statement. In such cases the records of the manufacturer shall show, in addition to the above requirements, the value of the imported material, the quantity of waste incurred in the manufacture of each lot of bags or meat wrappers, or during each period of manufacture, and the value of such waste, if any; and in liquidation the quantity of imported material which may be used as the basis for the allowance of drawback shall be reduced by the quantity of imported material which the value of the waste will replace.

(b) Sugar and sirups; substitution. Drawback may be allowed under the provisions of section 313 (b), Tariff Act of 1930, upon the exportation of hard or soft refined sugars and sirups manufactured from raw sugar, subject to the following special regulations:

(1) The drawback allowance shall not exceed 99 percent of the duty paid on a quantity of raw sugar designated by the refiner which contains a quantity of sucrose not in excess of the quantity required to manufacture the exported sugar or sirup, ascertained in the manner hereinafter set forth.

(2) The refined sugars and sirups shall have been manufactured with the use of duty-paid, duty-free, or domestic sugar, or combinations thereof, within 3 years after the date on which the designated sugar was received by the refiner, and shall have been exported within 5 years from the date of importation of the designated sugar.

(3) Each refiner operating hereunder shall file with the Commissioner of Customs a statement in triplicate, describing his methods of manufacture and storage and setting forth the refinery records which he agrees to keep for the purpose of providing all the data hereinafter specified for the proper liquidation of abstracts and drawbacks entries.

(4) All granulated sugar testing by the polariscope 99.5° and over shall be deemed hard refined sugar. All refined sugar testing by the polariscope less than 99.5° shall be deemed soft refined sugar. All "blackstrap," "unfiltered sirup," and "final molasses" shall be deemed sirup. (5) The imported duty-paid sugar selected by the refiner as the basis for the

drawback claim (designated sugar) shall be of the same kind and quality as that used in the manufacture of the exported refined sugar or sirup and shall have been used within 3 years after the date on which it was received by the refiner. Duty-paid sugar which has been used at a plant of a refiner within 3 years after the date on which it was received by such refiner may be designated as the basis for the allowance of drawback on refined sugars or sirups manufactured at another plant of the same refiner.

(6) For the purpose of distributing the drawback in accordance with the provisions of section 313, Tariff Act of 1930, relative values shall be established between hard refined (granulated) sugar, soft refined (various grades) sugar, and sirups at the time of separation. The entire period covered by an abstract shall be deemed the time of separation of the sugars and sirups covered by such abstract.

(7) The sucrose allowance per pound on hard refined (granulated) sugar established by the liquidation of an abstract shall be applied to hard refined sugar commercially known as loaf, cut loaf, cube, pressed, crushed, or powdered sugar manufactured from the granulated sugar covered by the abstract.

(8) The sucrose allowance per gallon on sirup established by the liquidation of an abstract shall be applied to sirup further advanced in value by filtration or otherwise, unless such sirup is the subject of a special drawback rate.

(9) As to each lot of imported or domestic sugar used in the manufacture of refined sugar or sirup on which drawback is to be claimed, the raw stock records shall show the refiner's raw lot number, the number and character of the packages, the settlement weight in pounds, and the settlement polarization. Such records covering imported sugar shall show, in addition to the foregoing, the import entry number, date of importation, name of importing carrier, country of origin, the Government weight, and the Government polarization.

(10) The melt records shall show the date of melting, the number of pounds of each lot of raw sugar melted, and the full analysis at melting.

(11) There shall be kept a daily record of final products boiled showing the date of the melt, the date of boiling, the magma filling serial number, the number

of the vacuum pan or crystallizer filling, the date worked off, and the sirup filling serial number.

(12) The sirup manufacture records shall show the date of boiling, the period of the melt, the sirup filling serial number, the number of barrels in the filling, the magma filling serial number, the quantity of sirup, its disposition in tanks or barrels, and the refinery serial manufacture number.

(13) The refined sugar stock records shall show the refinery serial manufacture number, the period of the melt, the date of manufacture, the grade of sugar produced, its polarization, the number and kind of packages, and the net weight. When soft sugars are manufactured, the commercial grade number and quantity of each shall be shown.

(14) Each lot of hard or soft refined sugar and each lot of sirup manufactured, regardless of the character of the containers or vessels in which it is packed or stored, shall be marked immediately with the date of manufacture and the refinery manufacture number applied to it in the refinery records hereinbefore provided for and shown in the abstract from such records filed in the customhouse. If all the sugar or sirup contained in any lot manufactured is not intended for exportation, only such of the packages as are intended for exportation need be marked as prescribed above, provided there is filed with the collector of customs immediately after such marking a statement showing the date of manufacture, the refinery manufacture number, the number of packages marked, and the quantity of sugar or sirup contained therein. No drawback shall be allowed in such case on any sugar or sirup in excess of the quantity shown on the statement as having been marked. If any packages of sugar or sirup so marked are repacked into other containers, the new containers shall be marked with the marks which appeared on the original containers and a supplemental statement covering such repacking and remarking shall be filed with the collector. If sirups from more than one lot are stored in the same tank, the refinery records shall show the refinery manufacture number and the quantity of sirup from each lot contained in such tank.

(15) An abstract from the foregoing records covering manufacturing periods of not less than 28 nor more than 35 days,

unless the Bureau shall have authorized a different period, shall be filed when drawback is to be claimed on any part of the refined sugar or sirup manufactured during such period. Such abstract shall be filed by each refiner with the collector of customs at New York, except as to refineries located in California, Louisiana, Puerto Rico, or Hawaii, for which the abstracts shall be filed respectively with the collectors at San Francisco, New Orleans, San Juan, or Honolulu. The collectors at the ports mentioned shall liquidate the abstracts filed with them and shall keep full and complete records of the kinds and quantities of refined sugars and sirups entitled to drawback on ex