CUSTOMS PROPOSES CLOSING FOUR OF EIGHT DRAWBACK PROCESSING CENTERS

CUSTOMS PROPOSES CLOSING FOUR OF EIGHT DRAWBACK PROCESSING CENTERS    U.S. Customs has notified the Senate Finance Committee of its proposal to close four of its eight drawback processing centers.
   The drawback processing centers affected by the proposal would be San Francisco, Boston, New Orleans and Miami. Customs’ other drawback processing centers in New York, Los Angeles, Chicago and Houston would remain in place.
   Drawback is the refund of duties paid on imported materials, which are either re-exported or used in the manufacture of export shipments.
   Betsy Durant, executive director of trade programs for Customs in Washington, said the move would help the agency become more uniform and efficient at processing drawback claims.
   The agency also believes the timing is right to reduce the number of drawback processing centers because of the decrease in the number of drawback claims filed by the shipping industry largely due to the North America Free Trade Agreement. Customs received 17,177 claims in 2000, compared to 38,915 claims in 1996.
   The drawback committees of the American Association of Exporters and Importers and the National Customs Brokers and Forwarders Association of America will be monitoring the proposal closely.
   “We want to emphasize that there are no final decisions yet,” Durant said. “It’s a proposal.”
   If the drawback processing centers are approved for closure, Customs plans to phase them out over a three to four year period, Durant added.