ANNOUNCEMENT 07 Aug 2015In August 2015, the government of the United States of America announced a change in the tax legislation for exporters.
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In a final rule published in the Federal Register on August 7, 2015 (Volume 80, Number 152) and that took immediate effect U.S. Customs and Border Protection provided for the liberalization of certain documentary evidence that is required as proof of exportation in order to claim drawback. Under the drawback provisions an exporter may claim refunds on 99% of the duties paid on imported inputs for goods that are subsequently exported. The final rule removes some of the requirements for documentation used to establish proof of exportation for drawback claims. Previously, claimants had to provide originally signed documentary evidence or a certified copy of such documentary evidence to establish the date and fact of exportation of articles for drawback purposes. The rule also amends the Code of Federal Regulations to reflect that there is no longer a legal requirement that the export invoice for mail shipments be certified.
This measure is likely to have a mixed effect on foreign commercial interests. The reduced paperwork requirements simultaneously make it more beneficial to source inputs from abroad (used to make exports) and to redirect production in the US from domestic to foreign markets.