Duty Drawback Clarification Act
- Bill Number
- H.R. 3028
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-04-24: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-30T08:06:23Z
AI-Generated Summary
Purpose
The Duty Drawback Clarification Act (H.R. 3028) aims to simplify the classification of whiskies in U.S. import tariff rules by creating a single, uniform 8-digit code for all types of whisky. This change is intended to make trade processes clearer, especially for refunds on import duties (known as "duty drawback") when goods are re-exported or used in manufacturing.
Key Provisions
- Amendment to Tariff Schedule: Replaces the existing subheading 2208.30 in Chapter 22 of the Harmonized Tariff Schedule of the United States (HTS, a standardized list used to classify imported goods and apply duties) with a new subheading 2208.30.00 titled "Whiskies." This sets a duty rate of "Free" (no ad valorem or percentage-based tariff) but applies a specific rate of $2.04 per proof liter (a measure of alcohol content).
- Addition of Statistical Sub-Codes: Directs the United States International Trade Commission (USITC) to create detailed sub-codes under 2208.30.00 for tracking purposes, broken down by type and container size:
- Irish or Scotch whisky (containers ≤4 liters or >4 liters).
- Bourbon whisky (containers ≤4 liters or >4 liters).
- Rye whisky (containers ≤4 liters or >4 liters).
- Other whiskies (containers ≤4 liters or >4 liters).
- Effective Date: The changes apply to goods entered or withdrawn from warehouses for consumption starting 15 days after the bill's enactment.
Significant Changes to Existing Law
- Prior to this, whiskies were classified under multiple subheadings in the HTS (e.g., separate codes for Scotch, Irish, bourbon, and others), which could complicate duty calculations and drawback claims. This bill consolidates them into one primary 8-digit code while adding statistical suffixes for data collection, reducing confusion without altering the overall duty rates.
- The HTS indentation for the new code aligns it with similar spirits like vermouth (2208.50.00), improving organizational consistency.
Potential Impacts
- On Government Agencies: The USITC will need to update the HTS and related databases for statistical tracking, while U.S. Customs and Border Protection (CBP) may see streamlined import processing. This could reduce administrative errors in duty drawback refunds, potentially saving time and resources.
- On Citizens and Businesses: U.S. whisky producers (e.g., bourbon distillers) and exporters may benefit from easier compliance and faster drawback refunds when exporting or using imported whiskies in blends. Importers of foreign whiskies (e.g., Scotch or Irish) could face simpler classification, lowering costs. Consumers are unlikely to see direct price changes, as duty rates remain the same.
- On International Relations: Minimal direct impact, but it could facilitate smoother trade with whisky-exporting countries like the UK (Scotland), Ireland, and Canada by standardizing U.S. import rules, potentially supporting ongoing trade agreements.
Main Stakeholders Affected
- U.S. Whisky Industry: Domestic producers (especially in Kentucky, home to bourbon) and related businesses, who co-sponsored the bill.
- Importers and Exporters: Companies handling international whisky trade, benefiting from uniform classification.
- Government Bodies: USITC (for HTS updates) and CBP (for enforcement).
- Foreign Producers: Distillers in Ireland, Scotland, and elsewhere, who export to the U.S.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances clarity in trade law under the Tariff Act of 1930 (as amended), potentially reducing disputes over HTS classifications in customs courts. No changes to duty rates, so it avoids broader tariff policy shifts.
- Constitutional: Aligns with Congress's enumerated power to regulate commerce and impose tariffs (Article I, Section 8), with no apparent free speech, due process, or other rights concerns.
- Political: Introduced by bipartisan Kentucky representatives, reflecting regional economic interests in the bourbon industry (a major U.S. export). It could set a precedent for similar simplifications in other HTS chapters, promoting efficiency in trade policy without partisan controversy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (31)
Rep. McGarvey, Morgan [D-KY-3], Rep. Barr, Andy [R-KY-6], Rep. Guthrie, Brett [R-KY-2], Rep. Rogers, Harold [R-KY-5], Rep. Landsman, Greg [D-OH-1], Rep. Miller, Carol D. [R-WV-1], Rep. Comer, James [R-KY-1], Rep. Haridopolos, Mike [R-FL-8], Rep. Burchett, Tim [R-TN-2], Rep. Sewell, Terri A. [D-AL-7], Rep. Williams, Roger [R-TX-25], Rep. Veasey, Marc A. [D-TX-33], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Van Duyne, Beth [R-TX-24], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Steube, W. Gregory [R-FL-17], Rep. Moskowitz, Jared [D-FL-23], Rep. Hurd, Jeff [R-CO-3], Rep. Johnson, Julie [D-TX-32], Rep. Kean, Thomas H. [R-NJ-7], Rep. Shreve, Jefferson [R-IN-6], Rep. Tenney, Claudia [R-NY-24], Rep. Schmidt, Derek [R-KS-2], Rep. Joyce, David P. [R-OH-14], Rep. Kelly, Mike [R-PA-16], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Goldman, Craig A. [R-TX-12], Rep. Kustoff, David [R-TN-8], Rep. Flood, Mike [R-NE-1], Rep. Murphy, Gregory F. [R-NC-3], Rep. Moore, Riley M. [R-WV-2]
Recent Actions
- 2025-04-24: Referred to the House Committee on Ways and Means.
- 2025-04-24: Introduced in House
- 2025-04-24: Introduced in House
Bill Versions
- Duty Drawback Clarification Act — issued 2025-04-24 — PDF (2 pages)