§4534 — Title 19 Customs Duties | U.S. Code

Summary

Lists which imported goods cannot get drawback (a refund of duties) under the USMCA. It excludes eight kinds of goods, including items moved in bond for export; goods sent to a USMCA country unchanged (testing, cleaning, repacking, sorting, marking, inspecting, or preserving do not count as a change); goods that are treated as already exported and then used as materials or sent to duty-free shops, ship’s stores, or joint U.S.–USMCA projects; goods returned because they failed to meet samples or were shipped without the buyer’s consent; goods that already qualify as originating under the USMCA rules and are exported or used as materials; certain sugar products under HTS 1701.13.20 or 1701.14.20 brought in under re-export programs and then used as materials; citrus products exported to Canada; and goods used as materials (or replaced by like goods) in making apparel or certain moving pads and textile items (HTS 6307.90.99, 5811.00.20, 5811.00.30). Explains how “same kind and quality” is decided for substitutions: for the HTS 1701 items it is based on the day before the USMCA took effect; for other goods it means the same 8-digit HTS code or if drawback would be allowed under subsections (b)(4), (j)(1), or (p) of section 1313. The Secretary of the Treasury cannot, as a condition of export, cut a fee under section 624 of title 7 for these excluded goods. It also does not allow refunds of countervailing or antidumping duties. If U.S. Customs finds a claim for preferential tariff treatment plus a claim for refund, reduction, waiver, or a bond credit (see section 1312(d)(1)), the Commissioner may adjust the prior customs treatment of the article.

Title 19, §4534

Customs Duties — Source: USLM XML via OLRC

(a)For purposes of this Act, the term “good subject to USMCA drawback” means any imported good other than the following:

(1)A good entered under bond for transportation and exportation to a USMCA country.

(2)A good exported to a USMCA country in the same condition as when imported into the United States. For purposes of this paragraph—

(A)processes such as testing, cleaning, repacking, sorting, marking, or inspecting a good, or preserving it in its same condition, shall not be considered to change the condition of the good, and

(B)except for a good referred to in paragraph 11 of Annex 3–B of the USMCA that is exported to Mexico, if a good described in the first sentence of this paragraph is commingled with fungible goods and exported in the same condition, the origin of the good may be determined on the basis of the inventory methods provided for in the regulations implementing this title.11 See References in Text note below.

(3)A good—

(A)that is—

(i)deemed to be exported from the United States,

(ii)used as a material in the production of another good that is deemed to be exported to a USMCA country, or

(iii)substituted for by a good of the same kind and quality that is used as a material in the production of another good that is deemed to be exported to a USMCA country, and

(B)that is delivered—

(i)to a duty-free shop,

(ii)for ship’s stores or supplies for ships or aircraft, or

(iii)for use in a project undertaken jointly by the United States and a USMCA country and destined to become the property of the United States.

(4)A good exported to a USMCA country for which a refund of customs duties is granted by reason of—

(A)the failure of the good to conform to sample or specification, or

(B)the shipment of the good without the consent of the consignee.

(5)A good that qualifies under the rules of origin set out in section 202 1 that is—

(A)exported to a USMCA country,

(B)used as a material in the production of another good that is exported to a USMCA country, or

(C)substituted for by a good of the same kind and quality that is used as a material in the production of another good that is exported to a USMCA country.

(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,

(7)A citrus product that is exported to Canada.

(8)A good 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)apparel, or

(B)a good provided for in subheading 6307.90.99 (insofar as it relates to furniture moving pads), 5811.00.20, or 5811.00.30 of the HTS,

(b)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 1313(n)(2) of this title, 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 1313 of this title.

(c)Notwithstanding any other provision of law, the Secretary of the Treasury may not, on condition of export, refund or reduce a fee applied pursuant to section 624 of title 7 with respect to goods included under subsection (a) that are exported to a USMCA country.

(d)Nothing in this section or the amendments made by it shall be considered to authorize the refund, waiver, or reduction of countervailing duties or antidumping duties imposed on an imported good.

(e)(1)If the Commissioner of U.S. Customs and Border Protection determines that a claim of preferential tariff treatment has been made with respect to an article for which a claim described in paragraph (2) has been made, the Commissioner may make such adjustments regarding the previous customs treatment of the article as may be warranted.

(2)A claim described in this paragraph is a claim for—

(A)a refund, waiver, or reduction of duty, under any applicable provision of law; or

(B)a credit against a bond under section 1312(d)(1) of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (a), is Pub. L. 116–113, Jan. 29, 2020, 134 Stat. 11, known as the United States-Mexico-Canada Agreement Implementation Act. For complete classification of this Act to the Code, see

Short Title

note set out under section 4501 of this title and Tables. This title, referred to in subsec. (a)(2)(B), is title II of Pub. L. 116–113, Jan. 29, 2020, 134 Stat. 19, which enacted this subchapter and amended and enacted provisions set out as notes under several sections within this title. For complete classification of title II to the Code, see Tables. section 202, referred to in subsec. (a)(5), is section 202 of Pub. L. 103–182, title II, Dec. 8, 1993, 107 Stat. 2069, which was classified to section 3332 of this title prior to repeal by Pub. L. 116–113, title VI, § 601, Jan. 29, 2020, 134 Stat. 78, effective on the date the USMCA entered into force (July 1, 2020). The

Amendments

made by this section, referred to in subsec. (d), mean the

Amendments

made by section 203(b) and (c) of Pub. L. 103–182, which amended section 81c, 1311 to 1313, and 1562 of this title. Codification Subsecs. (a), (d), and (e) of former section 3333 of this title, which were transferred and redesignated as subsecs. (a), (c), and (d), respectively, of this section by Pub. L. 116–113, § 501(b)(1), (2), (d)(1)–(3), were based on Pub. L. 103–182, title II, § 203(a), (d), (e), Dec. 8, 1993, 107 Stat. 2086, 2092.

Amendments

2020—Pub. L. 116–113, § 501(a), struck out “[reserved]” after “Drawback” in section catchline. Subsec. (a). Pub. L. 116–113, § 501(b)(3)(A)–(C), substituted “USMCA” for “NAFTA” in heading, struck out “and the

Amendments

made by subsection (b)” after “of this Act” and substituted “USMCA drawback” for “NAFTA drawback” in introductory provisions, and substituted “USMCA country” for “NAFTA country” wherever appearing in pars. (1) to (5). Pub. L. 116–113, § 501(b)(1), (2), transferred subsec. (a) of section 3333 of this title to this section and inserted it after section catchline. See Codification note above. Subsec. (a)(2)(A). Pub. L. 116–113, § 501(b)(3)(D)(i), inserted “sorting, marking,” after “repacking,”. Subsec. (a)(2)(B). Pub. L. 116–113, § 501(b)(3)(D)(ii), substituted “paragraph 11 of Annex 3–B of the USMCA” for “paragraph 12 of section A of Annex 703.2 of the Agreement”. Subsec. (a)(6). Pub. L. 116–113, § 501(b)(3)(E), amended par. (6) generally. Prior to amendment, par. (6) read as follows: “A good provided for in subheading 1701.11.02 of the HTS 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 or 1701.99.99 (relating to refined sugar).” Subsec. (b). Pub. L. 116–113, § 501(c), added subpar. (b). Subsec. (c). Pub. L. 116–113, § 501(d)(4), substituted “exported to a USMCA country.” for “exported to— “(1) Canada after

December 31, 1995, for so long as it is a NAFTA country; or “(2) Mexico after

December 31, 2000, for so long as it is a NAFTA country.” Pub. L. 116–113, § 501(d)(1)–(3), transferred subsec. (d) of section 3333 of this title to this section, inserted it after subsec. (b), and redesignated it as subsec. (c). See Codification note above. Subsec. (d). Pub. L. 116–113, § 501(d)(1)–(3), transferred subsec. (e) of section 3333 of this title to this section, inserted it after subsec. (c), and redesignated it as subsec. (d). See Codification note above. Subsec. (e). Pub. L. 116–260 added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–260 effective

July 1, 2020, see section 601(h) of div. O of Pub. L. 116–260, set out as a note under section 81c of this title. Amendment by section 501(b) to (d) of Pub. L. 116–113 effective on the date the USMCA enters into force (

July 1, 2020) and applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after that date, see section 501(g) of Pub. L. 116–113, set out as a note under section 81c of this title.

§4534 Drawback

Summary

Title 19, §4534

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Amendments

Amendments

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata