News and Media
12/12/2011
Compliance Measurement Program Developed To Improve Drawback Processing
U.S. Customs and Border Protection (CBP) is currently testing a drawback compliance program called Drawback Compliance Measurement (DCM), which was developed in response to the Department of Homeland Security (DHS) Office of Inspector General annual financial statements audit findings.
The audit has consistently reported drawback as a material weakness for CBP internal controls over financial reporting. This in turn results in a significant deficiency for DHS. The audit findings highlight the manual nature of drawback processing and the associated risk of erroneous drawback payments.
Without a formal drawback measurement program, CBP is unable to defend the accuracy of current drawback processes. DCM will enable CBP to establish drawback compliance information based on a sound statistical methodology, as well as determine potential revenue loss, for a more comprehensive risk picture.
CBP will run a full-year DCM test in fiscal year 2012. After the one-year period, CBP will evaluate the DCM procedures and results, in order to determine next steps. Although review is performed on liquidated claims, DCM is not an audit. The DCM review will be conducted by a drawback specialist.
CBP will run a full-year DCM test in fiscal year 2012. After the one-year period, CBP will evaluate the DCM procedures and results, in order to determine next steps. Although review is performed on liquidated claims, DCM is not an audit. The DCM review will be conducted by a drawback specialist.
Please note that as part of the test, certain drawback claims may be reviewed by an office other than the one at which the drawback claim was filed. If claimants receive requests for information, they should respond to the requesting office.
Information on these and other recent developments can be obtained from our senior consultants.
