CBP guidance on drawback claims for merchandise destroyed by Hurricane Sandy 

December 5: The U.S. Customs and Border Protection (CBP) today issued guidance for claiming drawback on imported goods that were damaged or destroyed during Hurricane Sandy.  CSMS #12-000535 (December 5, 2012)

If duties and taxes were paid and the goods are either exported or destroyed, the goods may qualify for a duty drawback refund.


According to today’s CBP guidance, the importer will be required to provide documentation to CBP with details about the condition of the merchandise, as well as any insurance claims filed. If the importer has been reimbursed for duties and taxes via an insurance claim, the merchandise is not eligible for drawback.


CBP will waive the requirement to file a CBP Form 7553, Notice of Intent to Export or Destroy, as long as the importer provides detailed supporting documents showing the movement of the merchandise from import through to its ultimate exportation or destruction.


This documentation must include the submission of any comprehensive insurance claim filed by the claimant that indicates to CBP that duties and taxes were not included, as well as third- party destruction documentation that demonstrates to CBP that the merchandise was completely destroyed and will no longer be an article of commerce.


All drawback claims that are submitted to CBP must be clearly marked as “Hurricane Sandy” filings to allow for acceptance of the claim with these special requirements.



For more information, contact a professional with KPMG’s Trade & Customs practice:


Douglas Zuvich

(312) 665-1022


Andrew Siciliano

(631) 425-6057


John L. McLoughlin

(267) 256-2614


Todd R. Smith

(949) 885-5617


Luis A. Abad

(212) 954-3094


Amie Ahanchian

(202) 533-3247


Or your local KPMG Trade & Customs professional.




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

Other TaxNewsFlash publications

TaxNewsFlash-Trade & Customs by year