Duty Drawback Clarification Act

Duty Drawback Clarification Act

This bill provides for drawback (refund of certain duties, taxes, and fees) on whiskies imported into the United States when the same or similar products are later exported or destroyed. Further, the bill prohibits a proprietor of a distilled spirits plant from voluntarily destroying distilled spirits as a basis for claiming a drawback.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6854 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6854

  To clarify the treatment of drawback on distilled spirits, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2022

Mr. Yarmuth (for himself and Mr. Womack) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To clarify the treatment of drawback on distilled spirits, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Duty Drawback Clarification Act''.

SEC. 2. CLARIFICATION OF TREATMENT OF DRAWBACK ON DISTILLED SPIRITS.

    (a) Tax Treatment of Destroyed Spirits.--Section 5008(b) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``The proprietor'' and inserting the 
        following:
            ``(1) In general.--The proprietor''; and
            (2) by adding at the end the following:
            ``(2) Prohibition on duty drawback.--The destruction of 
        distilled spirits under paragraph (1) may not be used as the 
        basis for a claim for drawback under section 313 of the Tariff 
        Act of 1930 (19 U.S.C. 1313).''.
    (b) Substitution Drawback for Whiskey.--Section 313(j) of the 
Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended by adding at the end 
the following:
            ``(7) In the case of whiskey classifiable under subheading 
        2208.30 of the HTS, this subsection shall be applied and 
        administered--
                    ``(A) by substituting `6-digit HTS subheading 
                number' for `8-digit HTS subheading number' each place 
                it appears; and
                    ``(B) in paragraph (6)(A), by substituting `6 
                digits' for `8 digits'.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect and apply to drawback claims filed upon or after the date of 
enactment of this Act.
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