(m) When the rate has been established, or the statement approved under sec- TD 54155. tion 22.6, 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 which were exported TDs 52002, 53268, before the date of receipt by the collector or deputy collector of the application 54155. which resulted in the preparation of the statement on which the rate or collector's letter of approval was based.

(0) When a manufacturer or producer in whose behalf a rate of drawback has been established desires to have his rate amended under section 313(a), Tariff Act of 1930, or to change his statement filed under section 22.6 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 drawback entries, or to cover different methods of identification or manufacture, or other changes, he shall file an application therefor with the regional commissioner, district director, or port director of customs. The supplemental statement prepared as a result of such application shall be submitted to the regional commissioner where drawback entries filed under the existing rate of drawback are liquidated who shall issue the amendment, if that action is warranted. If entries are liquidated by more than one regional commissioner, the supplemental statement shall identify all such regional commissioners and the regional commissioner at the place first listed shall issue the amendment. The foregoing procedure shall also apply to applications for amendments under section 313 (b), (d), or (g), Tariff Act of 1930, as amended, and in the case of any combination of section 313(a) operations with section 313(b) (d), or (g) operations, but the supplemental statement in such cases shall be submitted to the Commissioner of Customs except as provided in subparagraph (1) of this paragraph. No drawback shall be allowed on articles exported before the date on which the application was received by the regional commissioner, district director, or port director, unless specifically authorized by the Bureau, or by the regional commissioner in cases within the provisions of section 22.6 or of this paragraph.

TDs 52002, 52395,

54155, 54554, 55016, 56288, 71-143.

(1) Supplemental statements covering operations under section 313(b), (d), TDs 54554, 55016. or (g), Tariff Act of 1930, as amended, which are limited to (i) a change in location of the factory of the manufacturer or producer; (ii) an additional factory at which the methods followed and records maintained are the same as those at another factory operating under an existing drawback rate of the manufacturer or producer; (iii) a change in name of the manufacturer or producer; (iv) the succession by a sole proprietorship, partnership, or corporation to the drawback operations of a manufacturer or producer; or (v) any combination of the foregoing changes, shall be processed in the manner provided in paragraph (o) for supplemental statements covering amendments under section 313(a), Tariff Act of 1930.

(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 regional commissioner, district director, or port director of customs. Drawback may be allowed on the articles covered by a supplemental schedule after it has been approved by the regional commissioner.

TDs 52377, 52490,

53268, 71-143.

(q) In cases where the drawback allowance is determined on a quantity-used TDs 52377, 52490. or appearing-in basis, regional commissioners of customs may request, for the 53268, 71-143. 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 imported merchandise used or appearing in each unit of finished articles. Such schedules shall be filed with the regional commissioner, district director, or port director of customs. Drawback may be allowed on articles covered by a supplemental advisory schedule after it has been approved by the regional commissioner.

CR-415

TDs 48490, 49763 (5), 50703, 52826,

53399, 54231,

54750, 55038; CD 108.

TDs 54231, 54750.

TDs 53336, 54750.

TDs 54231, 54750.

TD 53336.

TD 53336.

TDs 54231, 54750.

TDs 54231, 54750.

TDs 53336, 54231, 54750.

TDs 54231, 54750.

TD 55839.

TDs 54155, 56288, 56487, 68-203, 71-143, 75-44.

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, amended, shall be subject to the applicable provisions of this part and the records of the manufacturer or producer shall show:

as

(1) The quantity, identity, kind, and quality of the duty-paid merchandise or of other articles manufactured or produced under drawback regulations (all of the foregoing 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 in the manufacture or production of articles 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 where manufactured or produced either with the use of (i) the designated merchandise, (ii) other merchandise of the same kind and quality as the designated merchandise, or (iii) any combination of the foregoing;

(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 merchandise of the same kind and quality as the 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 merchandise 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 section 22.4(a) may be made in liquidation.

(c) Duty-paid merchandise or articles manufactured or produced under drawback regulations 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 merchandise of the same kind and quality as the designated merchandise.

(e) For purposes of compliance with subparagraph (a)(2) of this section, the use of domestic crude petroleum taken in exchange for imported crude petroleum in conformity with Presidential Proclamation No. 3279 of March 10, 1959, and the Oil Import Regulations issued thereunder, shall constitute use of the imported crude petroleum, provided no certificate of delivery on customs Form 7543 is issued covering such imported crude petroleum.

22.6 General drawback rates in effect; approval of drawback statements by Headquarters, U.S. Customs Service, and by regional commissioners.--(a) Drawback statements; filing and approval by one regional commissioner. Each manufacturer or producer of articles covered by a drawback rate in this section, except under paragraph (g-1), shall submit to the regional commissioner where drawback entries will be filed, a statement in duplicate describing the methods used in the manufacture or production of the products involved and setting forth the records it agrees to keep for the purpose of complying with the drawback law and regulations and for providing all the data required for the proper liquidation of certificates of manufacture and drawback entries filed hereunder. If the statement shows that the methods and records described therein enable the manufacturer or producer to comply with the law and regulations, the regional commissioner shall approve the statement and promptly notify the applicant, in writing, of such action. Statements and supplemental statements in

CR-416

triplicate relating to products covered by paragraph (g-1) of this section shall be forwarded to Headquarters, U.S. Customs Service, for approval.

(b) Drawback statements; filing and approval at more than one place. If draw- TD 54155, 56288, back entries are to be liquidated at more than one regional office, two additional 71-143. copies of the statement shall be required for each additional office. In such case, the regional commissioner at the place first listed in the drawback statement shall approve the statement, if that action is warranted, and promptly notify the applicant, in writing, of such action.

(c) Drawback statements; supplemental.-- Supplemental statements covering TD 54155. changes in statements filed under this section shall be handled in accordance with the provisions of paragraphs (a) and (b) of this section.

(d) Applicability of other drawback provisions to general rates.-- The allowance TD 54155. of drawback on articles covered by a drawback rate in this section shall be subject

to compliance with the applicable provisions of this part.

(e) Bags and meat wrappers.-- Drawback may be allowed on the exportation of TDs 39415, 40422-V, bags or meat wrappers manufactured with the use of imported burlap or other 49639. 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.

(f) 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) 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

TD 53268.

TDs 39424, 40605, 40903, 44291,

44673, 49639, 52041, 54155.

TD 53336.

TD 53399.

CR-416-A

22.6

TD 53336.

than 99.50 shall be deemed soft refined sugar. All "blackstrap," "unfiltered sirup," and "final molasses" shall be deemed sirup.

(4) 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. Dutypaid 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.

(5) 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.

(6) 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.

(7) 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.

(8) 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.

(9) 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.

(10) 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.

(11) 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.

(12) 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.

(13) 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

CR-416-B

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.

(14) An abstract from the foregoing records covering manufacturing TDs 52395, 53268, periods of not less than 1 month nor more than 3 months, unless a different 54155, 68-239, period shall have been authorized, 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 exportation and, upon proper request, shall issue extracts therefrom for use at other ports where drawback entries are filed covering exportations made of such refined sugars and sirups, and shall debit such records with the quantities covered by such extracts. The abstracts filed by each refinery shall be consecutively numbered by the refiner, shall be signed by the head refiner or superintendent or his first assistant, and shall be in the following form:

Abstract from the refinery records of located at covering sugars melted and hard and soft refined sugars and sirups manufactured therefrom during the period from