United States International Trade Commision Rulings And Harmonized Tariff Schedule
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€???? ??Ðunder€19€U.S.C.€1313(b).€€The€contract€provided€for€drawback€in€an€operation€in€which€"motorÏlamination€stamped€from€AISI€1010€cold€rolled€steel€[similar€size€and€dimension,€produced€fromÏAISI€1010€cold€rolled€steel€of€same€gage€and€thickness]",€"single€row,€deep€groove€CONRADÏtype€motor€grade€steel€ball€bearings€[manufactured€to€the€same€specifications€with€the€use€ofÏmaterials€of€the€same€composition€and€identified€by€the€same€part€number€as€the€substitutedÏcomponents]",€and€"copper€wire€produced€from€copper€cathode€containing€ASTM€B115€copperÏ[substitution€to€be€on€the€basis€of€same€gauge€for€gauge]"€was€the€imported€merchandise€(orÏdrawback€product)€to€be€designated€as€the€basis€for€drawback€on€the€exported€articles€and€theÏsame€merchandise€was€the€duty„paid,€duty„free,€or€domestic€merchandise€of€the€same€kind€andÏquality€as€that€designated.€€According€to€the€contract,€the€exported€articles€on€which€drawbackÏwas€to€be€claimed€were€industrial€electric€motors€and€other€motor„related€products,€includingÏgrinders€and€buffers.€€The€production€process€was€described€as€"mainly€involv[ing]€assembly€ofÏa€variety€of€purchased€and€internally€manufactured€parts€into€a€finished€electric€motor."ÌÌIn€the€protestantð??ðs€memorandum€in€support€of€the€protest,€on€pages€9€and€15,€the€protestant€statesÏthat€Southwestern€Die€Casting€(ð ?ðSWDð??ð),€protestantð??ðs€wholly€owned€subsidiary,€ð ?ðreceived€motorÏsubassemblies€which€contained€designated€materialð??ð€and€ð ?ðcasts€aluminum€components€on€engineÏsubassemblies€during€the€course€of€production.ð??ð€€On€page€9€of€the€memorandum,€the€protestantÏdiscusses€how€it€manufactures€laminations€itself,€and€discusses€how€the€imported€laminations€areÏconsigned€to€the€protestant€but€entered€through€an€agent.ÌÌIn€the€drawback€contract,€the€protestant€agreed€to€maintain€records€to€establish€"[t]he€identity€andÏspecifications€of€the€merchandise€we€designate;€...€the€quantity€of€merchandise€of€the€same€kindÏand€quality€as€the€designated€merchandise€appearing€in€exported€articles€we€produced;€[and]€that,Ïwithin€three€years€after€receiving€it€at€our€factory,€we€used€the€designated€merchandise€toÏproduce€articles€[and]€[d]uring€the€same€three€year€period,€we€produced€the€exported€articles."€ÏWith€specific€regard€to€inventory€procedures,€the€protestant€stated€that€it€would€be€able€to€furnishÏð ?ðproof€that€exported€articles€were€produced€from€designated€merchandise€within€three€years€ofÏreceipt€and€that€the€completed€articles€were€in€fact€exported€within€five€years€of€importationð??ð€ofÏthe€merchandise.€€The€protestant€stated€that€"[u]sing€audited€beginning€physical€inventoryÏquantities€plus€purchases€less€audited€ending€physical€inventory€quantities,€[it€would]€be€able€toÏestablish€with€reasonable€assurance€that€the€beginning€inventory€quantities€...€were€used€inÏproduction€during€the€specified€time€frames€[and]€[u]sing€[this€approach]€and€audited€beginningÏphysical€inventory€quantities€of€finished€product€plus€production€less€audited€ending€physicalÐ???? ? ??È-`'*?? ??Ðinventory€quantities,€the€[protestant€would]€be€able€to€establish€with€reasonable€assurance€thatÏthe€beginning€inventory€quantities€were€converted€into€produced€articles€within€three€years€andÏthat€the€articles€were€sold€within€five€years€of€importation€of€the€drawback€merchandise."ÌÌThe€protestant€specifically€stated€that€"[o]ur€records€establishing€our€compliance€with€theseÏrequirements€will€be€available€for€audit€by€Customs€during€business€hours."€€The€protestant€alsoÏstated:€€"We€understand€that€drawback€is€not€payable€without€proof€of€compliance."€€TheÏprotestant€agreed€to€"keep€its€drawback€related€records€and€supporting€data€for€at€least€threeÏyears€from€the€date€of€liquidation€of€any€drawback€claim€predicated€in€whole€or€in€part€upon€[theÏdrawback€contract]."€€The€protestant€specifically€agreed€to€"keep€[the]€[drawback]€statementÏcurrent€by€reporting€promptly€to€the€Regional€Commissioner€who€liquidates€the€claims€anyÏchanges€in€the€number€or€locations€of€its€offices€or€factories,€the€corporate€name,€or€the€corporateÏorganization€by€succession€or€re„incorporationð??ð€and€reporting€ð ?ðto€the€Headquarters,€U.S.ÏCustoms€Service€all€other€changes€affecting€the€information€contained€in€[the]€statement".ÌÌIn€August€of€1992,€Customs€conducted€a€limited€review€and€verification€of€certain€records€andÏdocumentation€supporting€two€of€the€protestant's€drawback€claims,€including€one€of€the€protestedÏclaims€(claim€C€„„„„„„5„6,€filed€on€November€26,€1991,€for€$19,266.27).€€Customs€advised€theÏprotestant€of€its€findings€in€a€letter€of€March€23,€1993.€€In€this€letter€Customs€stated:ÌÌà8 ?????? ?àWe€determined€that€[the€protestant]€had€insufficient€documentation€on€all€ofÏthe€claims€and€shipments€examined€....€€[The€protestant]€does€not€maintainÏthem€for€the€retention€period€outlined€in€[19€CFR€191.5]€....Ð????

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