The closure is part of CBP's planned consolidation of its drawback program. The reduction in processing offices would leave the agency with four more regionally located drawback centers: Chicago, Houston, New York and San Francisco.
“Closing the Los Angeles Drawback Center is required in order to attain CBP's original goals of conserving resources, increasing efficiency, exercising fiscal responsibility, and promoting greater uniformity in the processing of drawback claims,” the agency said in a Federal Register notice published Wednesday.
Duty drawback payments are made to parties claiming refunds on import duty payments for goods that are later exported or used in the manufacture of exported articles.
According to CBP’s drawback statistics from fiscal years 2006-2008, Los Angeles processed only 8.4 percent, 9.01 percent and 7.49 percent of all claims, respectively. Also, the claims paid out by the Los Angeles center during those fiscal years represented only 2.6 percent, 2.4 percent, and 3.2 percent of all drawback claims paid nationally.
This isn’t the first time CBP has consolidated its number of drawback centers. In early 2003, the agency reduced its centers from eight to the current five by closing centers in Miami, New Orleans and Boston.
CBP said it notified Congress of the proposed Los Angeles drawback center closure and received no objections from lawmakers.
'All remaining (drawback) claims that were filed at the Los Angeles Drawback Center prior to closure that have not been liquidated and still require CBP review will be forwarded to the San Francisco Drawback Center for final processing,' the agency said.
