CBP to close L.A. drawback processing center
U.S. Customs and Border Protection has proposed to close its Los Angeles drawback center due to decreases in claim filings and values at the processing center.
The reduction would leave the agency with four more regionally located drawback centers: Chicago, Houston, New York and San Francisco.
“This proposed closure of this drawback center is intended to conserve resources, increase efficiency, exercise fiscal responsibility, and promote greater uniformity in the processing of drawback claims,” CBP said in a Federal Register notice.
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.
• LA to lose drawback center
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, 2.42 percent, and 3.15 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.
The agency said that on May 27, 2008 and April 29, 2009, it notified the House Ways and Means and Homeland Security committees and the Senate Finance Committee about the proposed Los Angeles drawback center closure. CBP noted that it received no opposition from Capitol Hill.
CBP said if the proposal is adopted, then all future claims will be sent to one of the four remaining drawback centers. “All remaining 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.
CBP will take public comments on the proposed closure through Dec. 31. For more details, access the Federal Register notice.