View all text of Subpart S [§ 1090.1800 - § 1090.1850]
§ 1090.1820 - Additional procedures for GTAB.
In addition to any other procedure required under this subpart, an auditor must perform the procedures specified in this section for a gasoline manufacturer that imports GTAB under § 1090.1615.
(a) Listing of GTAB imports. An auditor must review a listing of GTAB imports as follows:
(1) Obtain a detailed listing of GTAB imports from the importer.
(2) Foot the import volumes from the importer.
(3) Obtain a detailed listing of GTAB imports directly from the third-party customs broker.
(4) Foot the import volumes from the third-party customs broker.
(5) Compare the total volume from the listing of imports supplied by the importer to the listing of imports supplied by the third-party customs broker and report any variances.
(6) Report the total imported volume of GTAB and the corresponding facilities at which the GTAB was blended.
(b) Listing of GTAB batches. An auditor must review a listing of GTAB batches as follows:
(1) Obtain the GTAB batch reports submitted by the importer under subpart J of this part.
(2) Foot the batch volumes.
(3) Compare the total volume from the batch reports to the listing of imports supplied by the importer under paragraph (a) of this section and report any variances.
(c) Detailed testing of GTAB imports. An auditor must review a detailed listing of GTAB imports as follows:
(1) Select a representative sample of GTAB imports from the listing of imports supplied by the importer under paragraph (a) of this section.
(2) Obtain the associated U.S. Customs Entry Summary for each selected import.
(3) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the selected imports.
(4) Compare the volume and location the import arrived in the United States on the listing for each selected import to the associated U.S. Customs Entry Summary and report any exceptions.
(d) Detailed testing of GTAB batches. An auditor must review a detailed listing of GTAB batches as follows:
(1) Select a representative sample of GTAB batches from the batch reports obtained under paragraph (b) of this section.
(2) Obtain the volume inspection report for each selected batch.
(3) Compare the reported volume for each selected batch to the volume inspection report and report any exceptions.
(e) GTAB tracing. An auditor must trace and review the movement of GTAB from importation to gasoline production as follows:
(1) Compare the total volume from the batch reports obtained under paragraph (b) of this section to the inventory reconciliation analysis obtained under § 1090.1810(b).
(2)(i) Obtain tank activity records that describe the movement of each selected batch under paragraph (d) of this section from importation to gasoline production.
(ii) Identify each selected batch in the tank activity records and trace each selected batch to subsequent reported batches of BOB or finished gasoline and report any exceptions.
(iii) Match the location of the facility where gasoline was produced from each selected batch to the location where each selected batch arrived in the United States, or to the facility directly receiving the selected batch from the import facility.
(iv) Determine the status of the tank(s) before receiving each selected batch (e.g., empty tank, tank containing blendstock, tank containing GTAB, tank containing PCG).
(v) If the tank(s) contained PCG before receiving the selected batch, take the following additional steps:
(A) Obtain and review a copy of the documented tank mixing procedures.
(B) Determine the volume and properties of the tank bottom that was PCG before adding GTAB.
(C) Confirm that the gasoline manufacturer determined the volume and properties of the BOB or finished gasoline produced using GTAB by excluding the volume and properties of any PCG, and that the gasoline manufacturer separately reported the PCG volume and properties under subpart J of this part and report any discrepancies.