Customs Nixes Rule Closing Drawback Loophole

Law360, New York (March 3, 2010, 3:19 PM EST) -- U.S. Customs and Border Protection has opted to withdraw a proposed rule that would have closed a loophole the agency said allowed importers to effectively skirt 99 percent of the federal excise taxes levied on alcohol, tobacco and certain types of fuel.

In a notice published Tuesday in the Federal Register, Customs said it would further consider the rule, which would have prevented importers from filing a substitution drawback claim for excise taxes paid on merchandise for which the substitute merchandise was not taxed or was...
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