L.A. to lose drawback center

U.S. Customs and Border Protection plans to close its Los Angeles duty drawback center, leaving four regional offices to handle a shrinking number of claims, an agency official said.

Duty drawback payments are made to parties claiming refunds on import duty payments for goods that are later exported or used in the manufacture of exported articles.

The Los Angeles facility was selected for closure because it handles the fewest number of drawback claims, CBP Director of Trade Relations Kim Marsho told the Commercial Operations Advisory Committee at an Aug. 7 meeting in Seattle. The one drawback liquidator in Los Angeles will be reassigned to the San Francisco office, she said. Other drawback centers will remain in New York-New Jersey, Chicago and Houston.

For more than a decade, Customs has experienced a decrease in the number of drawback claims and the amount of drawback. The move is part of a gradual consolidation effort, which last manifested itself in 2003 with the shutdown of drawback centers in Boston, Miami and New Orleans.

CBP is in the process of notifying Congress about its intentions and then will publish the proposal in the Federal Register. A 30-day comment period will follow before any action is initiated.

COAC chief liaison Bruce Leeds said the industry panel understands the rationale behind the closure and does not have any concerns. 

Source: American Shipper