19 USC 4534 - Drawback

View all text of Subchapter II [§ 4531 - § 4535]

§ 4534. Drawback

(a) “Good subject to USMCA drawback” definedFor 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.1

1 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 subspan 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).

(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 subspan 6307.90.99 (insofar as it relates to furniture moving pads), 5811.00.20, or 5811.00.30 of the HTS,

that is exported to Canada and that is subject to Canada’s most-favored-nation rate of duty upon importation into Canada.

Where in paragraph (6) a good referred to by an item is described in parentheses following the item, the description is provided for purposes of reference only.

(b) Same kind and qualityFor 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 subspan 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.

(d) Inapplicability to countervailing and antidumping duties

(e) Action on claim

(1) In general

(2) Claims describedA 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.

(Pub. L. 116–113, title II, § 208, title V, § 501(a)–(d), Jan. 29, 2020, 134 Stat. 52, 67, 68; Pub. L. 116–260, div. O, title VI, § 601(c)(1), Dec. 27, 2020, 134 Stat. 2150.)