SUBSTITUTION OF CRUDE PETROLEUM OR PETROLEUM DERIVATIVES.

SEC. 484A. SUBSTITUTION OF CRUDE PETROLEUM OR PETROLEUM DERIVATIVES. (a) In General.— Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by adding at the end thereof the following new subsection: “(p) Substitution of Crude Petroleum or Petroleum Derivatives.— “(1) Notwithstanding any other provision of this section, in the case of articles, described in headings 2707 through 2715, 2901 and 2902, or 3901 through 3914 (limited to liquids, pastes, powders, granules, and flakes) of the Harmonized Tariff Schedule of the United States, that— 104 STAT. 708 “(A) are— “(i) manufactured or produced under subsection (a) or (b) from crude petroleum or petroleum derivatives, or “(ii) imported duty-paid, and “(B) are stored in common storage with other articles of the same kind and quality that are otherwise manufactured or produced, drawback shall be paid on the articles withdrawn for export from such common storage (regardless of the source or origination of the articles withdrawn), if the requirements described in paragraph (2) are met. “(2) The requirements of this paragraph are met if— “(A) inventory records kept on a calendar month basis (not on a daily or transaction-by-transaction basis) demonstrate sufficient quantities of imported duty-paid articles or articles manufactured or produced under subsection (a) or (b) in the common storage against which such withdrawal is designated; “(B) such inventory records reflect deliveries to and withdrawals from such common storage that assure that the drawback paid does not exceed the amount of drawback that would be payable under this section had all of the articles withdrawn from common storage been imported duty-paid or manufactured or produced under subsection (a) or (b); “(C) certificates of delivery or certificates of manufacture and delivery, establishing the drawback eligibility of the imported duty-paid articles or articles manufactured or produced under subsection (a) or (b), when required, are filed with the drawback entry; and “(D) the inventory records of the operator of such common storage are, upon reasonable notice, available to the Customs Service. “(3) For purposes of this subsection— “(A) The term ‘common storage’ includes all articles of the same kind and quality stored at a single facility regardless of the number of bins, tanks, or other containers used. “(B) The term ‘same kind and quality’ means articles that are commercially interchangeable or that are referred to under the same eight-digit classification of the Harmonized Tariff Schedule of the United States. “(C) The term ‘single facility’ means all storage units under the control and recordkeeping of a single operator adjacent to a manufacturing plant, refinery, warehouse complex, terminal area, airport, bunkering facility, or similar facility.”. (b) Technical Correction.— Subsection (b) of section 309 of the Tariff Act of 1930 (19 U.S.C. 1309) is amended by inserting “imported articles,” after “foreign-trade zone,”. (c) Effective Date.— Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law, the amendments made by this section shall apply to— (1) claims filed or liquidated on or after January 1, 1988, and (2) claims that are unliquidated, under protest, or in litigation on the date of enactment of this Act.