Page 190 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 11: Warehousing and Duty Drawback

The conditions for identification by accounting method are: Notes
 The lots of merchandise must be fungible
 Inventory records must establish that the lots so identified as being received into and
withdrawn from the same inventory are being used in the ordinary course of business.
 All receipts into and all withdrawals from the inventory must be recorded in the accounting
record.

 Subject to verification by Customs.
 It must be used without variation for a period of at least one year unless approval is given
by Custom for a shorter period.

 Waiver of Prior Notice of Intent to Export.
 You may be eligible for Waiver of Prior Notice under Section 191.91 of the Customs
Regulations. The approval is based on the submission of an application and compliance
with the regulations.

Claim Period

In the case of unused merchandise drawback, it is necessary to establish that the merchandise
was exported or destroyed within three years from the date of import

In the case of rejected merchandise drawback, you must establish that the merchandise was
returned to Customs custody within three years after it was originally released from Customs
custody.
In the case of manufacturing drawback, you must establish that manufactured articles on which
drawback is being claimed were exported within five years from the date of import.

11.9 Payment of Drawback Claims

When a claim has been determined to be complete and satisfies all drawback requirements, the
drawback amount is verified and the entry liquidated for the refund due. Drawback is payable
to the exporter/destroyer unless the right to claim drawback has been transferred to a third
party through a Certificate of Delivery and/or Manufacture. Furthermore, the exporter/destroyer
must certify that drawback on the particular exportation or destruction will not be assigned to
any other party.

11.10 Duty Drawback under Section 19 BIS

The duty drawback scheme enables exporting companies to obtain a refund of Customs duty
paid on imported goods where those goods will have undergone production, mixing, assembling,
or packing and then exported to a foreign port. Only the person who is the legal owner of the
goods at the time the goods are exported, or a person to whom this right has been assigned, is
eligible to make a claim for duty drawback.
Definition

According to the Revised Kyoto Convention, the term “drawback” means the amount of import
duties and taxes repaid under the drawback procedure.
Duty drawback is provided under Section 19 BIS of the Customs Act (No.9) B.E. 2482. It means the
refund of import duty already paid or the return of guarantee placed on imports which have

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