DRA-2-02-RR:CR:DR 228003 IOR
Marie Staebell
Import-Export Manager
Commercial Services International, Inc.
1201 NW 65 Place
Fort Lauderdale FL 33309
Dear Ms. Staebell:
This is in response to your ruling request dated April 10, 1998, on documentation of exportation for purposes of unused drawback under 19 U.S.C. §1313(j). The ruling request was supplemented by your written response including documentation to our request for additional information, as well as information provided telephonically on April 14, 1999.
FACTS:
Commercial Services International Inc. (CSI) is a Florida corporation, whose parent company is Colombian Emeralds International (CEI). According to your submission, CSI’s function is to provide inventory and distribution of jewelry for CEI’s retail stores in the Caribbean. CSI imports the merchandise, pays the duties, and claims drawback under 19 U.S.C. §1313(j) after the merchandise is exported. According to your submission, CEI Distributors, Inc., which is owned by CEI, owns the merchandise, and is the seller of the exported merchandise. According to your submission, CSI is approved for Exporter’s Summary procedure and Waiver of Prior Notice of Export, and an authorization is on file in Miami, authorizing CSI to claim drawback.
On occasion, CSI exports merchandise via a company plane. To date, the plane was owned and operated by Palm-Aire, Inc. which was wholly owned by CEI. You state that Palm-Aire receives no fees for transporting cargo and carries cargo exclusively for CEI and its affiliated companies. As of your June 3, 1998 submission, Palm-Aire was being dissolved and the plane and pilot were to work directly for CEI. You ask whether the documents provided by CSI are sufficient to establish exportation for purposes of drawback.
You have provided us with the following documents:
1) Air Cargo Manifest- identifies the port of departure, date and time of departure, destination, and the shipper (CSI). The document describes the merchandise as "gold gemset jewelry." The document has a signature line for the aircraft commander or agent, attesting to the accuracy of the statements on the document. According to the submission of June 3, 1998, the pilot would sign this document. The document also has a signature line for an "authorized signature", attesting to the accuracy of attached Shipper’s Export Declarations;
2) Shipper’s Export Declaration (SED) (form 7525-V)- identifies the exporter as CSI, and describes the merchandise as "gold gemset jewelry". The form provides for the signature of the Import/Export Manager, and according to the June 3, 1998 submission, the SED would be signed by an authorized agent of CSI;
3) General Declaration (CF 7507)- identifies the cargo by referencing an attached cargo manifest. The form provides for the signature of the authorized agent or pilot-in-command, and according to the June 3, 1998 submission, this form would be signed by the pilot;
4) Sample import invoice- identifies the purchaser as CEI c/o CSI, describes in detail each type of jewelry and the quantity of each, for example 12 "sapphire earrings 16 rd sapp-1.08 cts., 14K gold", and gives the weight of each unit and the total quantity of units. The invoice also includes a style number which presumably could be verified by the company’s records, as well as a reference to a purchase order number;
5) Sample export invoice- identifies the consignee as CEI, describes the merchandise as 169 "pcs" of gold gemset jewelry and 13 "pcs" of gold necklaces (total quantity is 182). The invoice refers to two "datapass key" numbers ( according to you, the export documents were examples of the type of export documents available and were not intended to represent the merchandise represented in the import documents); and
6) 2 attachments to the sample export invoice, each identified as "data pass report key" with a number corresponding to the numbers on the sample export invoice. Each document describes each piece of merchandise, for example "ruby & pearl ring", and refers to an invoice number, manufacturer code, land cost (which reflects the item price on the import invoice) and style number (according to the telephone conference with you, the style number is now included on the data pass report key, whereas on the sample documents submitted it had not yet been included), which would correspond to information on the import invoices. The total quantity of merchandise on the two sets of documents is 182.
Documents not provided, but included in the list of those that would be used to establish exportation include an exporter’s summary and CF 7511, with original signature from Customs at time of export.
ISSUE:
Whether the documentation submitted and described is sufficient to establish exportation for purposes of claiming drawback.
LAW AND ANALYSIS:
The drawback statute was substantively amended by section 632, title VI Customs Modernization, Pub. L. No. 103 182, the North American Free Trade Agreement Implementation ("NAFTA") Act (107 Stat. 2057), enacted December 8, 1993. The Customs Regulations were revised on March 5, 1998 to implement the amended statutes.
The Customs Regulations 191.72 (19 CFR 191.72) provide for exportation procedures:
Exportation of articles for drawback purposes shall be established by complying with one of the procedures provided for in this section (in addition to providing prior notice of intent to export if applicable (see §§ 191.35, 191.36, 191.42, and 191.91 of this part)). Supporting documentary evidence shall establish fully the date and fact of exportation and the identity of the exporter. The procedures for establishing exportation outlined by this section include, but are not limited to:
(a) Actual evidence of exportation consisting of documentary evidence, such as an originally signed bill of lading, air waybill, freight waybill, Canadian Customs manifest, and/or cargo manifest, or certified copies thereof, issued by the exporting carrier;
(b) Export summary (§ 191.73);
(c) Certified export invoice for mail shipments (§ 191.74);
(d) Notice of lading for supplies on certain vessels or aircraft (§ 191.112); or
(e) Notice of transfer for articles manufactured or produced in the U.S. which are transferred to a foreign trade zone (§ 191.183).
Under 19 CFR 191.73, the export summary procedure, consists of a Chronological Summary of Exports used to support a drawback claim, which may be submitted as part of the claim in lieu of actual documentary evidence of exportation. Under the export summary procedure, the drawback
claimant, whether or not the exporter, "shall maintain the Chronological Summary of Exports and such additional evidence of exportation required by Customs to establish fully the identity of the exported articles and the fact of exportation."
Under the revised regulations, any drawback claimant may use the export summary procedure, it is no longer a privilege that must be granted prior to its use, as it was under the regulations prior to their amendment. Approval for waiver of prior notice is still required, and under 19 CFR 191.91(a)(2), for claimants approved for waiver of prior notice as of April 6, 1998, such approval remains in effect up to one year after April 6, 1998, however the claimant must apply for a waiver of prior notice under 19 CFR 191.91, in accordance with the revised regulations. Under the revised regulations, there is no longer a CF 7511, Notice of Exportation of Articles with Benefit of Drawback, but there is a CF 7553, Notice of Intent to Export, Destroy or Return Merchandise for Purposes of Drawback (provided for in 19 CFR 191.35) which must be filed unless waiver of prior notice has been approved.
Based on the facts described in the ruling request and the Customs Regulations, CSI may support the drawback entries with the export summary, while maintaining and having available for Customs inspection, the documentary evidence of the identity of the exported articles and the fact of exportation. Provided that the export summary complies with the regulations in 19 CFR 191.73, and that the items listed in the datapass attachments can be linked to the items described on the import documents, we find that the documentation consisting of an originally signed or certified copy of the air cargo manifest issued by the aircraft operator with the pilot’s signature, the signed general declaration, and export invoice with datapass attachments are sufficient to establish the identity of the exported articles and the fact of exportation.
With respect to other criteria for drawback under 19 U.S.C. §1313(j)(1) (direct identification unused merchandise drawback), this decision does not make any determinations with respect to the requirement that the exported merchandise be unused, that the exported merchandise is the same as that imported, and the right to claim drawback by CSI.
HOLDING:
An export summary, supported by an originally signed or certified copy air cargo manifest issued by the aircraft operator with the pilot’s signature, the signed general declaration, and export invoice with attached detailed descriptions of the exported merchandise, is sufficient evidence of exportation in accordance with 19 CFR 191.73(c), for the circumstances of exportation as described.
Sincerely,
John Durant
Director, Commercial
Rulings Division