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Code · BILL · 116th Congress · H.R. 5430 (Reported in House) — To implement the Agreement between the United States of America, the United Mexican States, and Canada attached as an... · Sec. 501

Sec. 501. Drawback

1,199 words·~5 min read·/bill/116/hr/5430/rh/section-501

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Section 208 of this Act is amended in the section heading by striking . [reserved] Subsection
(a)of section 203 of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3333 ) is— transferred to section 208 of this Act; inserted after the section heading for that section (as amended by subsection (a)); and amended— by striking NAFTA country each place it appears and inserting USMCA country ; in the subsection heading, by striking and inserting NAFTA ; USMCA in the matter preceding paragraph (1)— by striking and the amendments made by subsection
(b); and by striking NAFTA drawback and inserting USMCA drawback ; in paragraph (2)— in subparagraph (A), by inserting sorting, marking, after repacking, ; and in subparagraph (B), by striking paragraph 12 of section A of Annex 703.2 of the Agreement and inserting paragraph 11 of Annex 3–B of the USMCA ; and by amending paragraph
(6)to read as follows: A good provided for in subheading 1701.13.20 or 1701.14.20 of the HTS that is imported under any re-export program or any like program and that is— used as a material, or substituted for by a good of the same kind and quality that is used as a material, in the production of a good provided for in existing Canadian tariff item 1701.99.00 or existing Mexican tariff item 1701.99.01, 1701.99.02, or 1701.99.99 (relating to refined sugar). . Section 208 of this Act, as amended by subsection (b), is further amended by adding at the end the following: For purposes of paragraphs (3)(A)(iii), (5)(C), (6)(B), and
(8)of subsection (a), and for purposes of obtaining refunds, waivers, or reductions of customs duties with respect to a good subject to USMCA drawback under section 313(n)(2) of the Tariff Act of 1930 ( 19 U.S.C. 1313(n)(2) ), a good is a good of the same kind and quality as another good— for a good described in such paragraph (6)(B), if the good would have been considered of the same kind and quality as the other good on the day before the date on which the USMCA enters into force; or for other goods if— the good is classified under the same 8-digit HTS subheading number as the other good; or drawback would be allowed with respect to the goods under subsection (b)(4), (j)(1), or
(p)of section 313 of the Tariff Act of 1930 ( 19 U.S.C. 1313 ). . Subsections
(d)and
(e)of section 203 of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3333 ) are— transferred to section 208 of this Act; inserted after subsection
(b)of section 208 (as added by subsection (c)); redesignated as subsections
(c)and (d), respectively; and amended, in subsection
(c)(as redesignated by paragraph (3)), by striking exported to and all that follows through the period at the end and inserting exported to a USMCA country. . Section 311 of the Tariff Act of 1930 ( 19 U.S.C. 1311 ) is amended, in the eleventh paragraph— by striking NAFTA each place it appears; by striking section 203(a) of the North American Free Trade Agreement Implementation Act and inserting section 208(a) of the ; and United States-Mexico-Canada Agreement Implementation Act by striking section 2(4) of that Act and inserting section 3 of that Act . Section 312 of the Tariff Act of 1930 ( 19 U.S.C. 1312 ) is amended, in subsections
(b)and (d)— by striking NAFTA each place it appears and inserting USMCA ; by striking section 2(4) of the North American Free Trade Agreement Implementation Act each place it appears and inserting section 3 of the ; and United States-Mexico-Canada Agreement Implementation Act by striking section 203(a) of that Act each place it appears and inserting section 208(a) of that Act . Section 313 of the Tariff Act of 1930 ( 19 U.S.C. 1313 ) is amended— in subsection (j)(4), by striking subparagraph
(A)and inserting the following: Effective upon the entry into force of the USMCA, the exportation to a USMCA country of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs
(1)through
(8)of section 208(a) of the United States-Mexico-Canada Agreement Implementation Act , shall not constitute an exportation for purposes of paragraph (2). In this subparagraph, the terms USMCA and USMCA country have the meanings given those terms in section 3 of the United States-Mexico-Canada Agreement Implementation Act . ; in subsection (n)— in paragraph (1), by striking subparagraphs
(A)and
(B)and inserting the following: the term USMCA country has the meaning given that term in section 3 of the United States-Mexico-Canada Agreement Implementation Act ; the term good subject to USMCA drawback has the meaning given that term in section 208(a) of the United States-Mexico-Canada Agreement Implementation Act ; ; and in paragraphs
(2)and (3), by striking NAFTA each place it appears and inserting USMCA ; and in subsection (o), by striking NAFTA each place it appears and inserting USMCA . Section 562 of the Tariff Act of 1930 ( 19 U.S.C. 1562 ) is amended— by striking paragraph
(1)and inserting the following: without payment of duties for exportation to a USMCA country, as defined in section 3 of the United States-Mexico-Canada Agreement Implementation Act , if the merchandise is of a kind described in any of paragraphs
(1)through
(8)of section 208(a) of that Act; ; in paragraph (2)— by striking section 203(a) of that Act and inserting section 208(a) of that Act ; and by striking NAFTA each place it appears and inserting USMCA ; and in paragraphs
(3)and (4), by striking NAFTA each place it appears and inserting USMCA . Section 3(a)(2) of the Act of June 18, 1934 (commonly known as the Foreign Trade Zones Act ) ( 19 U.S.C. 81c(a)(2) ) is amended, in the flush text— by striking goods subject to NAFTA drawback, as defined in section 203(a) of the North American Free Trade Agreement Implementation Act and inserting goods subject to USMCA drawback, as defined in section 208(a) of the ; United States-Mexico-Canada Agreement Implementation Act by striking a NAFTA country, as defined in section 2(4) of that Act and inserting a USMCA country, as defined in section 3 of that Act ; and by striking NAFTA each place it appears and inserting USMCA . The table of contents for this Act is amended by striking the item relating to section 208 and inserting the following: Sec. 208. Drawback. . Each transfer, redesignation, and amendment made by subsections
(b)through
(e)shall— take effect on the date on which the USMCA enters into force; and apply with respect to a good entered, or withdrawn from warehouse for consumption, on or after that date. In the case of a good entered, or withdrawn from warehouse for consumption, before the date on which the USMCA enters into force— the amendments made by subsections
(b)through
(e)shall not apply with respect to the good; and the provisions of law amended by such subsections, as such provisions were in effect on the day before that date, shall continue to apply on and after that date with respect to the good.
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