facturer, producer, or exporter, to the agent of either or to the person to whom such manufacturer, producer, exporter, or agent shall in writing order such drawback paid, under such regulations as the Secretary of the Treasury shall prescribe."

Drawback Regulations

SEC. 2. It is the object of this legislation to encourage the manufacture for export and to that end to give the American manufacturer the use of foreign materials, whether raw or partly manufactured, practically free of import duty, the one per cent. retained by the Government being considered relatively unimportant.

The regulations of the Secretary of the Treasury governing the allowance of drawback on the exportation of articles manufactured wholly or in part with the use of imported materials on which duties have been paid do not contemplate a constant supervision of the process of manufacture by a Government storekeeper at the expense of the manufacturer, but provide for the keeping of appropriate records by means of which the imported materials used may be traced through the various processes of manufacture, and the quantity or measure thereof determined in the finished article exported. (Articles 855-889 of the Customs Regulations of 1915.)

It is on the quantity of imported material so identified, whether by actual weighing, measuring or gauging of the exported article, or by an examination of the importer's manufacturing records showing quantities of imported materials used, where the process is one involving a chemical or other change of the imported article, that the amount of drawback to be paid is based.

It is therefore a matter of the greatest impor

tance that a proper record and identification of the materials used in the process of manufacture be maintained by the manufacturer, and it will not be sufficient to show merely that a corresponding quantity of foreign material was imported. Failure to keep adequate records may invalidate the claim for the allowance of drawback.

Application for Drawback

SEC. 3. Before drawback allowance can be made it will be necessary to file with the Secretary of the Treasury an application in writing setting forth the nature of the article to be manufactured for export and the foreign materials to be used in its manufacture, with the request that a rate of drawback be established applicable to such exportations.

Establishment of the Rate of Drawback

SEC. 4 After due investigation by Special Agents of the Treasury Department of the applicant's process of manufacture, and the nature and quantities of the imported materials used, a rate of drawback will be prescribed for the manufactured article to be exported.

Notice of Intent to Export

SEC. 5. The rate having been established, it will be necessary before exportation may be made with the benefit of drawback to file a Notice of Intent to export, it being provided by Article 859 of the Customs Regulations of 1915 that:

"At least six hours before lading of articles entitled to drawback, the party claiming such drawback shall file with the collector a notice of intent to export with benefit of drawback."

This notice must specify the marks and numbers of the packages to be exported, give a description of the merchandise contained therein, state where the same is deposited and the character of the imported materials or parts used in the manufacture of the exported article on which drawback is claimed.

Inspection and Lading

SEC. 6. The notice of intent having been duly filed, suitable provision is made by Article 860 of the Customs Regulations of 1915 for the inspection of the merchandise by customs officers prior to lading on the exporting vessel, and for the supervision of the lading thereof.

Completion of Drawback Entry

SEC. 7. The merchandise having been duly inspected and laden, it is provided by Article 866 of the Customs Regulations of 1915 that:

"Within one year after the clearance of the exporting vessel or conveyance there shall be filed with the collector at the port where the notices of intent were deposited a drawback entry in duplicate in the form following: . . . .

دو

This form provides for a complete identification of the merchandise by marks and numbers, quantity and description, by whom manufactured, material on which drawback is claimed, name of the exporting vessel, date of clearance and foreign destination of the merchandise.

Landing Certificate

SEC. 8. Where the drawback exceeds $100 on any shipment exported by sea, or $25 if exported by land, the party making entry for drawback shall

execute and deliver to the collector of customs a bond conditioned for the production of a foreign landing certificate. This certificate may be signed by the consignee, or by the foreign revenue officer, or by the vessel's agent at the place of landing. In the absence of such bond to produce the foreign landing certificate, the liquidation of the drawback entry and the payment of the drawback will be suspended until such time as the required foreign landing certificate shall have been produced. (Article 876 of the Customs Regulations of 1915.)

Liquidation of the Drawback Entry

SEC. 9. The documentary evidence required under the regulations of the Secretary having been furnished, the collector of customs will proceed with the liquidation of the drawback entry for the purpose of determining the amount of drawback due on the merchandise exported thereunder. (Article 897 of the Customs Regulations of 1915.)

Payment of Drawback

SEC. 10. The amount of drawback due having been ascertained, the collector will issue in payment thereof a debenture certificate made payable to the order of the party making such entry, or to the order of a party to whom the maker of the entry shall, on entry, have ordered the drawback paid or declared the same to be due.

Said debenture certificate will be made payable thirty days from the date of the clearance of the exporting vessel or conveyance (Article 880 of the Customs Regulations of 1915), provision for payment having been made by Section 3048 of the Revised Statutes, which provides that:

"So much money as may be necessary for the payment of debentures or drawbacks and allowances which may be authorized and payable is hereby appropriated for that purpose out of any money in the Treasury, to be expended according to the laws authorizing debentures or drawbacks and allowances. The collectors of customs shall be the disbursing agents to pay such debentures, drawbacks, and allowances. All debenture certificates issued according to law shall be received in payment of duties at the custom-house where the same have been issued, the laws regulating drawbacks having been complied with."