Sec. 501. DRAWBACK

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## SEC. 501 DRAWBACK ###

(a)Clerical Amendment **[**[19 U.S.C. 4534](/us/usc/t19/s4534)**]** Section 208 of this Act is amended in the section heading by striking “[reserved]”. ###

(b)USMCA Drawback Subsection

(a)of section 203 of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3333) is— ####

(1)**[**[19 U.S.C. 4534](/us/usc/t19/s4534)**]** transferred to section 208 of this Act; ####

(2)inserted after the section heading for that section (as amended by subsection (a)); and ####

(3)amended— #####

(A)by striking “NAFTA country” each place it appears and inserting “USMCA country”; #####

(B)in the subsection heading, by striking “NAFTA” and inserting “USMCA”; #####

(C)in the matter preceding paragraph (1)— ######

(i)by striking “and the amendments made by subsection (b)”; and ######

(ii)by striking “NAFTA drawback” and inserting “USMCA drawback”; #####

(D)in paragraph (2)— ######

(i)in subparagraph (A), by inserting “sorting, marking,” after “repacking,”; and ######

(ii)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 #####

(E)by amending paragraph

(6)to read as follows: > > #### “(6) > > 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— > > > ##### “(A) > > used as a material, or > > > ##### “(B) > > 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).” > . ###

(c)Same Kind and Quality Section 208 of this Act, as amended by subsection (b), is further amended by adding at the end the following: > > ### “(b) Same Kind and Quality > > 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— > > > #### “(1) > > 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 > > > #### “(2) > > for other goods if— > > > ##### “(A) > > the good is classified under the same 8-digit HTS subheading number as the other good; or > > > ##### “(B) > > 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).” > . ###

(d)Certain Fees; Inapplicability to Countervailing and Antidumping Duties Subsections

(d)and

(e)of section 203 of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3333) are— ####

(1)**[**[19 U.S.C. 4534](/us/usc/t19/s4534)**]** transferred to section 208 of this Act; ####

(2)inserted after subsection

(b)of section 208 (as added by subsection (c)); ####

(3)redesignated as subsections

(c)and (d), respectively; and ####

(4)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.”. ###

(e)Conforming Amendments ####

(1)Bonded manufacturing warehouses Section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) is amended, in the eleventh paragraph— #####

(A)by striking “NAFTA” each place it appears; #####

(B)by striking “section 203(a) of the North American Free Trade Agreement Implementation Act” and inserting “section 208(a) of the United States-Mexico-Canada Agreement Implementation Act”; and #####

(C)by striking “section 2(4) of that Act” and inserting “section 3 of that Act”. ####

(2)Bonded smelting and refining warehouses Section 312 of the Tariff Act of 1930 (19 U.S.C. 1312) is amended, in subsections

(b)and (d)— #####

(A)by striking “NAFTA” each place it appears and inserting “USMCA”; #####

(B)by striking “section 2(4) of the North American Free Trade Agreement Implementation Act” each place it appears and inserting “section 3 of the United States-Mexico-Canada Agreement Implementation Act”; and #####

(C)by striking “section 203(a) of that Act” each place it appears and inserting “section 208(a) of that Act”. ####

(3)Drawback and refunds Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended— #####

(A)in subsection (j)(4), by striking subparagraph

(A)and inserting the following: > > ##### “(A) > > > ######

(i)> > 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). > > > ###### “(ii) > > 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.” > ; #####

(B)in subsection (n)— ######

(i)in paragraph (1), by striking subparagraphs

(A)and

(B)and inserting the following: > > ##### “(A) > > the term ‘USMCA country’ has the meaning given that term in section 3 of the United States-Mexico-Canada Agreement Implementation Act; > > > ##### “(B) > > 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 ######

(ii)in paragraphs

(2)and (3), by striking “NAFTA” each place it appears and inserting “USMCA”; and #####

(C)in subsection (o), by striking “NAFTA” each place it appears and inserting “USMCA”. ####

(4)Manipulation in warehouse Section 562 of the Tariff Act of 1930 (19 U.S.C. 1562) is amended— #####

(A)by striking paragraph

(1)and inserting the following: > > #### “(1) > > 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;” > ; #####

(B)in paragraph (2)— ######

(i)by striking “section 203(a) of that Act” and inserting “section 208(a) of that Act”; and ######

(ii)by striking “NAFTA” each place it appears and inserting “USMCA”; and #####

(C)in paragraphs

(3)and (4), by striking “NAFTA” each place it appears and inserting “USMCA”. ####

(5)Foreign trade zones 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— #####

(A)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”; #####

(B)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 #####

(C)by striking “NAFTA” each place it appears and inserting “USMCA”. ###

(f)Additional Clerical Amendment The table of contents for this Act is amended by striking the item relating to section 208 and inserting the following:" “Sec. 208. Drawback.” ". ###

(g)Effective Date **[**[19 U.S.C. 81c note](/us/usc/t19/s81c)**]** ####

(1)In general Each transfer, redesignation, and amendment made by subsections

(b)through

(e)shall— #####

(A)take effect on the date on which the USMCA enters into force; and #####

(B)apply with respect to a good entered, or withdrawn from warehouse for consumption, on or after that date. ####

(2)Transition from nafta treatment In the case of a good entered, or withdrawn from warehouse for consumption, before the date on which the USMCA enters into force— #####

(A)the amendments made by subsections

(b)through

(e)shall not apply with respect to the good; and #####

(B)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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