store or bonded warehouse, the representative of the proprietor shall check the goods against the ticket, customs Form 6043-A, or copy of warehouse or rewarehouse permits, customs Form 7502-A, used in lieu of a ticket, and countersign such ticket or copy of the permit. A receipt shall be taken for all goods delivered from public store or bonded store. Such receipt may be taken on the permit to release, customs Form 7500-B, on the appraiser's release ticket at the time delivery is made, or on customs Form 6043-C. Customs Form 6043-C may also be used as a receipt for goods delivered from customs custody in any other case where the collector deems such receipt necessary. In the case of withdrawals from bonded warehouse for consumption, the merchandise shall be released only to or upon the order of the proprietor of the warehouse who shall acknowledge such release on customs Forms 7505-A or 7505-B. If a receipt is taken on customs Form 6043-C for goods delivered from public store or bonded store, it shall be disposed of as if a receipt were taken on the permit to release, customs Form 7500-B, or on the appraiser's release ticket.

(b) The cartman or lighterman shall countersign the ticket, receipts, extra copy of warehouse or rewarehouse permit, or the copy of the entry or withdrawal document, used in lieu of a cartage or lighterage ticket for goods carted or lightered, customs Form 6043A, 6043-C, 7502-A, 7506, or 7512, in the space provided as a receipt for the goods, noting any bad order or discrepancy. When available, the importing carrier's tally slip for the merchandise shall be attached to the cartage or lighterage ticket, customs Form 6043-A, or the copy of customs Form 7502-A, 7506, or 7512 used in lieu of a cartage or lighterage ticket, which accompanies the merchandise while it is being so carted or lightered in bond, for the use of customs officers only at destination.

shall promptly report the facts to the col lector (to the surveyor at New York) for instructions.

PART 22-DRAWBACK

ARTICLES MANUFACTURED OR PRODUCED WHOLLY OR IN PART FROM IMPORTED OR SUBSTITUTE MERCHANDISE

Sec.

22.1

22.2

22.3

22.4

22.5

22.6

22.7

Drawback allowance.

Canal Zone and Guantanamo Bay Application for establishment of draw back rate.

Identification of imported merchan dise and ascertainment of quanti ties for allowance of drawback; es tablishment of drawback rates Identification of imported merchan dise and ascertainment of quanti ties for allowance of drawback when substituted merchandise is used General drawback rates in effect; ap proval of drawback statements by collectors.

Notice of exportation.

22.8 22.9 22.10 Numbering notices of exportation fo mail or government shipment Amendment of notices of exportation Examination of merchandise Completion of drawback claims. Certificates of importation and tracts.

Notice of exportation; mail shipments Notice of exportation; government shipments.

22.11

22.12

22.13 22.14

22.15 Certificates of delivery of imported merchandise.

22.16 Certificates of manufacture and deliv ery; manufactured or partly manu fractured articles.

Landing certificates.

22.17

22.25

Internal Revenue certificates and ex tracts from such certificates. 22.26 Collector's statement of drawback due MERCHANDISE EXPORTED FROM CONTINUOUS CUSTOMS CUSTODY

22.27 Drawback allowed. Continuous custody.

22.28

22.29 22.30

Entry and completion thereof. Ascertainment of drawback.

REJECTED MERCHANDISE

33 Return of merchandise to customs custody.

34 Acceptance of merchandise at importer's risk and expense; time limit for exportation.

35 Waiver of proof where the duty is less than $50.

MERCHANDISE TRANSFERRED TO A FOREIGNTRADE ZONE FROM CUSTOMS TERRITORY 36 Drawback allowance.

37 Articles manufactured or produced in the United States.

38 Merchandise transferred to a foreigntrade zone from continuous customs custody.

39 Rejected merchandise. 40 To whom payable.

GENERAL REGULATIONS APPLICABLE TO ALL DRAWBACK CLAIMS

41 Duties subject to drawback.

42 Merchandise sold to United States Government.

43 Verification of drawback claims by Customs Agency Service.

44 Protests.

45 Signing of documents; powers of attorney.

46 Retention of records.

AUTHORITY: The provisions of this Part 22 sued under secs. 313, 624, 46 Stat. 693, as nended, 759, sec. 101, 76 Stat. 72; 19 U.S.C. 13, 1624, Gen. Hdnote. 11, Tariff Schedules the United States, except as otherwise sted.

SOURCE: The provisions of this Part 22 pear at 28 F.R. 14778, Dec. 31, 1963, unless therwise noted.

RTICLES MANUFACTURED OR PRODUCED WHOLLY OR IN PART FROM IMPORTED OR SUBSTITUTED MERCHANDISE

1"(a) Articles made from imported merhandise. Upon the exportation of articles anufactured or produced in the United tates with the use of imported merchandise, he full amount of the duties paid upon the aerchandise so used shall be refunded as rawback, less 1 per centum of such duties, xcept that such duties shall not be so reunded upon the exportation of flour or byroducts produced from wheat imported fter ninety days after the date of the enctment of this act. •

"(b) Substitution for drawback purposes. imported duty-paid merchandise and duty ree or domestic merchandise of the same ind and quality are used in the manufacture r production of articles within a period not o exceed three years from the receipt of

33-583-65 -30

factured or produced in the United States wholly or in part with the use of imported or substituted merchandise, on meats cured with imported salt, and on vessels and aircraft built and equipped in the United States for foreign account

such imported merchandise by the manufacturer or producer of such articles, there shall be allowed upon the exportation of any such articles, notwithstanding the fact that none of the imported merchandise may actually have been used in the manufacture or production of the exported articles, an amount of drawback equal to that which would have been allowable had the merchandise used therein been imported; but the total amount of drawback allowed upon the exportation of such articles, together with the total amount of drawback allowed in respect of such imported merchandise under any other provision of law, shall not exceed 99 per centum of the duty paid on such imported merchandise.

The

"(g) Materials for construction and equipment of vessels built for foreigners. provisions of this section shall apply to material's imported and used in the construction and equipment of vessels built for foreign account and ownership, or for the government of any foreign country, notwithstanding that such vessels may not within the strict meaning of the term be articles exported.

"(h) Time limitation on exportation. No drawback shall be allowed under the provisions of this section unless the completed article is exported within five years after importation of the imported merchandise.

"(1) Regulations. Allowance of the privileges provided for in this section shall be subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe, which may include, but need not be limited to, the fixing of a time limit within which drawback entries or entries for refund under any of the provisions of this section or section 309 (b) of this Act shall be filed and completed, and the designation of the person to whom any refund or payment of drawback shall be made.

"(1) Source of payment. Any drawback of duties that may be authorized under the provisions of this Act shall be paid from the customs receipts of Puerto Rico, if the duties were originally paid into the Treasury of Puerto Rico." (Tariff Act of 1930, sec. 313, as amended; 19 U. S. C. 1313)

and ownership, subject to compliance with the regulations in this part.

§ 22.2

Canal Zone and Guantanamo Bay. The Panama Canal Zone and Guantanamo Bay Naval Station shall be considered foreign territory for drawback purposes.*

§ 22.3 Application for establishment of drawback rate.

(a) Each manufacturer or producer of articles intended for exportation with benefit of drawback (whether he is a primary, intermediate, or final manufacturer or producer of the articles, and whether or not the articles are of a character covered by a general drawback rate) shall make application prior to the exportation of such articles for the establishment of a rate of drawback. The application shall be made on customs Form 4477 or in a substantially similar form and shall be filed with the collector or deputy collector of customs in charge at any port of entry. When it is desired to export articles before an application in such form can be delivered in the regular course of the mails, a telegraphic application will be accepted, provided it shows the name of the manufacturer or producer, the name of the merchandise used, the name of the articles being exported, and the location of the factory at which the articles are manufactured or produced, and provided it is followed promptly by an application in the form prescribed herein.

(b) In the case of a vessel or aircraft on which drawback is to be claimed under section 313 (g), Tariff Act of 1930, the application prescribed in paragraph

2 Section 313(g), Tariff Act of 1930, applies only to materials used in the original construction and equipment of the vessels or aircraft and not to materials used for alteration or repair. The term "foreign account and ownership" contemplates only vessels or aircraft built and equipped for the account of an owner or owners residing in a foreign country and having a bona fide intention that the vessel or aircraft shall, when completed, be owned and operated under the flag of a foreign country.

'There is no authority of law for the allowance of drawback of customs duty on articles manufactured or produced in the United States and shipped to Alaska, Puerto Rico, Hawaii, the Virginia Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, the island of Guam, Canton Island, Enderbury Island, Johnston Island, or Palmyra Island.

(a) of this section shall be made by t builder of the vessel or aircraft.

(c) The manufacturer or produc may abandon his application for th establishment of a rate of drawback filing a written statement to that effe addressed to the collector or deputy col lector of customs with whom the appl cation was filed or to the investigatin officer. An abandoned application m not be revived to give an earlier effecti date to a rate of drawback established the result of a subsequent application § 22.4 Identification of imported me

chandise and ascertainment of quan ties for allowance of drawback; estal lishment of drawback rates.

(a) Each manufacturer or produc shall keep records which will establis as to all articles manufactured or pr duced for exportation with benefit drawback, the date or inclusive dates manufacture or production, the quantit and identity of the imported duty-pai merchandise or of articles manufacture or produced under drawback regulation (referred to hereafter in this part drawback products) used, the quanti and description of the articles man factured or produced, and the quantit of waste incurred. If claim for waste waived, the manufacturer or produce shall keep records which will establis the quantity and identity of the importe duty-paid merchandise or drawba products appearing in the articles mam factured or produced, in which case res ords need not be kept of either th quantity of waste incurred or of th quantity imported duty-paid merchan dise or drawback products used, unle such records are necessary to enable th manufacturer or producer to establis the quantity of imported duty-paid met chandise or drawback products appear ing in the articles. When the waste ha a value and the manufacturer or pro ducer has not limited his claims to th quantity of imported duty-paid met chandise or drawback, products appear ing in the articles, the records shall shot the factory value of the imported duty paid merchandise or drawback product used and the factory value of the wast in order that in the liquidation of the drawback entry the quantity of imported duty-paid merchandise or drawback products used may be reduced by the quantity thereof which the value of the waste will replace. The records of the manufacturer or producer shall also show

e quantity, if any, of duty-free or mestic merchandise used when such cords are necessary to the determinain of the quantity of imported dutyid merchandise or drawback products ed in the manufacture or production the articles or appearing therein. In ses where two or more products result om the manipulation of the imported ty-paid merchandise, records shall be pt which will show the values of such oducts at the time of separation. An stract of the records kept by the manacturer or producer shall be filed with e drawback entry.

(b) The imported duty-paid merchanse or drawback products shall be stored a manner which will enable the manacturer or producer to determine, in njunction with his storage records, the port entry, certificate of delivery, or rtificate of manufacture and delivery umber or numbers under which they ere received, and to identify with reect to such import entry, certificate of livery, or certificate of manufacture id delivery number or numbers the imrted duty-paid merchandise or drawck products used in the manufacture production of the articles, and to esblish whether such articles were exArted within 5 years after the importion of the duty-paid merchandise. (c) The articles manufactured or proiced shall be stored or marked in a anner which will preserve the identifition established by means of the storte records and the records of manufactre or production.

(d) Each person required by §§ 22.15 ad 22.16 (c) to certify to the delivery of iported merchandise or drawback *oducts shall store such merchandise *products while they are in his posseson and keep records which will enable m to show the quantity, identity, and escription of such merchandise or prodts, the date on which they were reived by him, the person from whom ley were received, the date on which ley were delivered by him to other perns, and the persons to whom such deveries were made. These records shall the basis of the certificates or enorsements required under § § 22.15 and 2.16 (c).

(e) Where it appears to the satisfacon of the Bureau, or of the collector 1 appropriate cases, that it is impractiable for the manufacturer or producer › keep records of all the information equired for the determination of the

drawback which may accrue to the products manufactured or produced by him, complementary records covering the information not available to the manufacturer or producer may be kept by the persons in the United States for whose account the products are manufactured or produced, and abstracts of such records shall be filled with the drawback entry.

(f) When identification is made against two or more lots of imported merchandise of different dutiable values or subject to different rates of duty, or against two or more lots of drawback products subject to different allowances of drawback, the drawback shall be based first upon the lot or lots of the lowest dutiable value, rate of duty, or drawback allowance, as the case may be, then upon the lot or lots of the next higher dutiable value, rate of duty, or drawback allowance, and so on from lower to higher until all the lots have been accounted for. The same principle shall apply in cases where the articles are commingled in storage after manufacture or production. If two or more lots of a fungible product are commingled in storage and quantities thereof are withdrawn for domestic consumption as well as for exportation with benefit of drawback, the withdrawals for domestic consumption shall be accounted for in the order in which the several lots of such product were placed in storage, exclusive of any lots in respect of which drawback has been allowed; and, in the case of the withdrawals for exportation, the drawback allowance thereon shall be based on the lot carrying the lowest allowance 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 collector of customs at the port where his drawback entries

will be filed a statement in duplicate 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 in this section have been maintained. The statement shall be submitted to the collector through the customs agent in charge who assisted in its preparation. In the case of operations under section 313 (b), (d), or (g), Tariff Act of 1930, as amended, the statement in triplicate shall be submitted through the customs agent in charge to the Commissioner of Customs. 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 af 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.

(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 advisory 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 collector in a case under section 313(a), Tariff Act of 1930, or the Bureau in a case under section 313 (b), (d), or (g), Tariff Act of 1930, as amended, will issue the rate of drawback on the articles described in the statement, except that in cases under § 22.6 the procedure in paragraphs (a) and (b) of that section shall be followed. When the statement in a case under sec

tion 313 (a), Tariff Act of 1930, sho that entries are to be filed at more the one port, the collector at the port f listed shall issue the rate, if that acti is warranted.

(k) Each person who keeps comp mentary records as provided for paragraph (e) of this section shall a statement describing such records accordance with the procedure p scribed for manufacturers and pr ducers in paragraph (h) of this sectio Such statement shall be subject to th provisions of paragraphs (i) and (j) ( this section.

(1) Drawback entries may be filed co ering articles exported on or after date on which the application for esta lishment of the drawback rate was ceived by the collector or deputy c lector of customs, but such entries sha not be liquidated until the rate has bee established or in cases under § 22.6 t statement has been approved.

(m) When the rate has been estal lished or the statement approved und § 22.6, drawback may be allowed articles manufactured or produced accordance therewith and exported on after the effective date named there provided all pertinent regulations ha been complied with.

(n) In no case shall drawback allowed on articles which were exporte before the date of receipt by the collet tor or deputy collector of the applicatio which resulted in the preparation of th statement on which the rate or collet tor's letter of approval was based.

(0) When a manufacturer or product in whose behalf a rate of drawback h been established desires to have his ra amended under section 313(a), Tarl Act of 1930, or to change his stateme filed under § 22.6 to cover additional al ticles, to include additional factories, i permit the use of other kinds of importe duty-paid merchandise or drawbac products, to provide for a different bas for the liquidation of the drawback en tries, or to cover different methods identification, manufacture, or othe changes, he shall file an applicatio therefor with the collector or deputy col lector of customs. The supplements statement prepared as a result of suc application shall be submitted through the customs agent in charge who as sisted in its preparation to the collecte of customs at the port where drawback entries filed under the existing rate d drawback are liquidated who shall issu