Date of receipt by refiner of above sugar
Date of use by refiner of above sugar
Date of delivery of refined sugar or sirup
Delivered to

-

Deputy Collector.

Comptroller.

To be used at the port of

(g) Linseed oil, linseed oil cake, and linseed oil meal. Drawback may be allowed under the provisions of section 313 (a), Tariff Act of 1930, upon the exportation of linseed oil, linseed oil cake, and linseed oil meal, manufactured with the use of imported flaxseed, subject to the following special regulations:

(1) The mill zones hereinafter referred to embrace:

New York Mill Zone: Maine, New Hampshire, Vermont, Massachusetts, Connecticut, New York (except Buffalo), New Jersey, Pennsylvania (except Pittsburgh), Delaware, Maryland, and Rhode Island.

Buffalo Mill Zone: Buffalo, N. Y., Pittsburgh, Pa., West Virginia, Ohio, Indiana, Michigan, and Kentucky.

Chicago Mill Zone: Minnesota, South Dakota, Wisconsin, Illinois, Iowa, Nebraska, Missouri, and Kansas.

West Coast Mill Zone: Washington, Idaho, Oregon, California, Nevada, Utah, and Ari

zona.

(2) Except as provided for in subparagraph (3) of this paragraph, the manufacturing period (hereinafter referred to as the abstract period) of each crusher shall be coextensive with the withdrawal of one or more entire lots or cargoes of imported flaxseed, from the storage tanks and the manufacture into oil and cake of the flaxseed so withdrawn. A cut-off shall be made at the storage tanks after the withdrawal of one or more complete lots or cargoes, and all the seed from such lots or cargoes in process or contained in bins, screens, conveyors, cookers, presses, expellers, etc., shall be manufactured during the abstract period in order that there may be no overlapping of seed and product from one abstract period to another. If any seed withdrawn from the storage tanks during any abstract period is disposed of without being manufactured into the products specified in this paragraph, it shall be reported on the certificate of manufacture provided for in

subparagraph (4) of this paragraph. The quantity of seed so withdrawn shall be stated according to its condition as imported.

(3) Should it become necessary for a crusher to terminate an abstract period before the complete withdrawal from the storage tanks of any lot or cargo of imported flaxseed contained therein, a cutoff shall be made at the storage tanks and the quantity of imported flaxseed remaining in the tanks after the cut-off shall be determined by weighing, gauging, or measuring under the supervision of a customs officer. Upon application to the collector of customs in whose district the plant of the crusher is located, a customs officer shall be assigned for this purpose. All flaxseed withdrawn from storage before the cut-off shall be manufactured into oil and cake or otherwise disposed of before a new abstract period is begun.

(4) At the conclusion of each abstract period during which a crusher manufactures oil, cake, or meal for exportation with benefit of drawback, such crusher shall file a certificate of manufacture, constituting an abstract of his manufacturing records, with the collector of customs at any one of the following ports: New York, N Y.; Philadelphia, Pa.; Chicago, Ill.; Cleveland, Ohio; San Francisco, Calif.; or Seattle, Wash.

(5) Such certificate shall show the inclusive dates of manufacture; the quantity, identity, and value (if valuable wastes occur) of the imported flaxseed or screenings, scalpings, chaff, or scourings used; the quantity by actual weight and value, if any, of the material removed from the foregoing by screening prior to crushing; the quantity and kind of domestic merchandise added, if any; the quantity by actual weight or gauge and value of the oil, cake, and meal obtained; and the quantity and value, if any, of the waste incurred. The quantity of imported flaxseed, screenings, scalpings, chaff, or scourings used or of material removed shall not be estimated nor computed on the basis of the quantity of finished products obtained, but shall be determined by actually weighing the said flaxseed, screenings, scalpings, chaff, scourings, or other material; or, at the option of the crusher, the quantities of imported materials used may be determined from customs

weights, as shown by the import entry covering such imported materials, and the Government weight certificate and certificate of analysis issued at the time of entry. The entire period covered by an abstract shall be deemed the time of separation of the oil and cake covered thereby.

(6) The drawback allowance shall not exceed 99 percent of the duty paid on the quantity of imported flaxseed, screenings, scalpings, chaff, or scourings used in the manufacture of the exported products, less the quantity of such imported materials which the value of the waste will replace, as shown by the abstract of the manufacturing records provided for

above.

(7) The drawback allowance shall be distributed to the oil and cake in accordance with their relative values at the time of separation, and the drawback allowance on the processed oil and on the oil meal shall be the drawback accruing to the raw oil and to the cake from which the processed oil and the meal, respectively, were produced.

(8) In order that the relative values may be determined for use as the bases for the distribution of the drawback to the several products as prescribed in section 313 (a), Tariff Act of 1930, each crusher operating under the provisions of this paragraph shall file with the collector of customs, New York, N. Y., within 10 days after the 1st and 15th days of each month a statement in duplicate showing the quantity of oil in barrels of 375 pounds each and the quantity of cake or meal in tons of 2,000 pounds delivered each day from the mill during the preceding period (that is, 1st to 15th or 16th to the last day of the month) to points in the zone in which the mill is located. The total daily quantity and value of such products delivered with drawback not reserved by the crusher and the total daily quantity of such products delivered with drawback reserved by the crusher shall be stated separately. The value of oil shall be shown on the carload raw basis in barreled condition, that is, if the oil was processed, the processing differential shall be deducted, or, if it was delivered in tank wagons or tank cars, the barreling differential shall be added. The values of cake and meal shall be shown on the carload basis in bags. The values

of oil cake, and meal, as outlined above, shall be reported on the basis of the invoices of sale, without deduction for the cost of containers and other charges.

(9) Upon receipt of the statements from the crushers concerned, the collector of customs at New York shall determine and declare the daily average values of the raw linseed oil and linseed cake manufactured by the crushers in each mill zone. Such daily average

values shall be ascertained in the following manner:

(i) The total quantity of oil delivered on a certain day by all crushers in a given mill zone to points within that zone, with drawback not reserved by the crushers, divided into the amount of money received by the crushers for such oil (the quotient to be extended to 6 decimal places), less the amount deducted for the cost of packing and other charges incurred after separation shall be the daily average value of such oil.

(ii) The total quantity of cake delivered on a certain day by all crushers in a given mill zone to points within that zone, with drawback not reserved by the crushers, divided into the amount of money received by the crushers for such cake (the quotient to be extended to 6 decimal places), less the amount deducted for the cost of packing and other charges incurred after separation, shall be the daily average value of such cake.

(iii) The total quantity of meal delivered on a certain day by all crushers in a given mill zone to points within that zone, with drawback not reserved by the crushers, divided into the amount of money received by the crushers for such meal (the quotient to be extended to 6 decimal places), less the amount deducted for the cost of packing, grinding, and other charges necessary to reduce such meal to a cake basis, shall be the daily average value of the cake from which such meal was ground.

(iv) The weighted average of the two values determined in accordance with subdivisions (ii) and (iii) of this subparagraph shall be the daily average value of the cake concerned.

(v) If no deliveries of oil, cake or meal are made to a point in the mill zone on a certain day, the last daily average value established by the collector at New York for that product shall be used as the value thereof for the day on which no deliveries were made.

(vi) The amount to be deducted from the delivered value of oil cake, or meal by the collector at New York to make relative value at the point of separation shall be an average amount for each zone obtained by averaging the cost of packing and other charges of all crushers within the zone concerned. In order that this deduction may be made, each crusher shall furnish the collector at New York, from time to time as the collector may request, a statement showing such costs and charges.

(10) After the close of each calendar month the collector at New York shall prepare for each mill zone a statement showing the daily average values of cake and oil ascertained as above, and shall transmit to the collectors at Philadelphia, Chicago, Cleveland, San Francisco, and Seattle copies of such statements as cover zones in which crushers who fille abstracts at the respective ports are located.

(11) To ascertain the relative values of the cake and oil for the period covered by an abstract, the collector of customs concerned shall add the daily average values for his zone of cake and oil, respectively, as furnished by the collector at New York, for each day of the period covered by the abstract and shall divide the totals thus obtained by the number of such daily average values.

(12) Upon the application of any crusher operating under this paragraph, the collector of customs at any of the above-mentioned ports is authorized to advise such crusher of the daily average values of cake and oil established by the collector of customs at New York for the zone in which the crusher is located, and of the relative values of such products as determined for the period covered by an abstract filed by such crusher with the collector to whom application has been made.

(13) If a crusher desires to file his abstract at one of the above-enumerated ports not located within the mill zone in which his plant is situated, the daily average values of the oil and cake for the zone in which the plant of the crusher is situated shall be certified by the collector at New York to the collector at the port where such abstract is to be filed, on the request of such crusher; and the collector at such port shall ascertain the relative values of the products for the period covered by the abstract in the manner prescribed in subparagraph (11) of this paragraph.

(14) If the records of the manufacturer do not show the quantity of oil cake used in the manufacture of the exported oil meal and the quantity of oil meal obtained, the net weight of the oil meal exported shall be regarded in liquidation as the weight of the oil cake used in the manufacture thereof.

(15) If various tanks are used for the storage of imported flaxseed, the mill records shall show by a definite designation the tank or tanks in which each lot or cargo is stored.

(16) If raw or processed oil manufactured during different periods of manufacture is intermixed in storage, a record shall be maintained showing the quantity, identity, and kind of oil so intermixed. Identification shall be made in accordance with § 22.4 (f). If oil so intermixed is delivered to manufacturers who use the oil in the manufacture of articles to be exported, the certificate of delivery shall show the certificates of manufacture from which such oil may have originated.

(17) If linseed cake or meal is placed in storage, it shall be segregated by abstract periods or marked to show the period in which it was manufactured.

(g-1) Crude petroleum and petroleum derivatives; substitution. Drawback may be allowed under the provisions of section 313(b), Tariff Act of 1930, as amended, upon the exportation of petroleum products manufactured from crude petroleum or petroleum derivatives, subject to the following regulations:

(1) The drawback allowance shall not exceed 99 per centum of the duty paid on the quantity of crude petroleum or petroleum derivatives designated by the refiner in accordance with the law and regulations from which the exported products could have been produced in the exported quantities, in conjunction with the related products, producible by ordinary manufacturing techniques, as determined in the manner hereinafter set forth.

(2) The petroleum products shall have been manufactured with the use of dutypaid, duty-free, or domestic crude petroleum or petroleum derivatives, or combinations thereof, within 3 years after the date on which the designated crude petroleum or petroleum derivatives were received by the refiner, and shall have been exported within 5 years from the date of importation of the designated crude petroleum or petroleum derivatives.

Item (6) Products shall be shown on the abstract in the net quantities realized in the refining process and shall not include non-petroleum additives.

Item (9) Quantity of crude (sum of all classes and derivatives) allowable per barrel of product.

(9) The refiner will file an inventory control sheet showing for each product, in barrels, the opening inventory, the production, exports, drawback deliveries, domestic shipments, and closing inventory, as well as the drawback factor applicable thereto, as per the following form:

(10) The refiner shall file a combination drawback entry and certificate of manufacture showing the products exported in the quantities as established by notices of exportation and notices of lading. Inasmuch as exported products, as described on notices of exportation and notices of lading, may include quantities of nonpetroleum additives, a recapitulation shall be made showing quantities exported and the quantity of each product (less additives) in terms of the abstract.

(11) The total quantity of raw material on which drawback may be based, subject to limitations hereinafter specified, shall be computed by multiplying the quantity (in the terms of the abstract) of each product exported by the drawback factor for that product. See "Inventory Control Sheet" for method of accounting.

(12) The amount of drawback determined in accordance with these regulations shall be limited by the quantity of imported duty-paid raw material of the same kind and quality as that used in the manufacture of the exported products in a quantity sufficient to produce such products, with due regard to the products producible concurrently with the exported products and shall not exceed 99 per centum of the duty paid on the imported merchandise against which drawback is claimed.

(15) Balance on hand.