II

106TH CONGRESS

2D SESSION S. 2694

To amend section 313 of the Tariff Act of 1930 to make certain products

eligible for drawback and to simplify and clarify certain drawback provisions.

IN THE SENATE OF THE UNITED STATES

JUNE 8, 2000

Mr. MURKOWSKI introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To amend section 313 of the Tariff Act of 1930 to make

certain products eligible for drawback and to simplify

and clarify certain drawback provisions.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. UNUSED MERCHANDISE DRAWBACK.

4 (a) IN GENERAL.—Section 313(j) of the Tariff Act

5 of 1930 (19 U.S.C. 1313(j)) is amended—

6 (1) in paragraph (1), by striking ‘‘because of

7 its’’ and inserting ‘‘upon entry or’’;

8 (2) in paragraph (2), by striking ‘‘because of

9 its’’ and inserting ‘‘upon entry or’’; and
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1 (3) by adding at the end the following new

2 paragraph:

3 ‘‘(5) No prior notification of intent to export is

4 required to be provided to the Customs Service for

5 any exports under this subsection.’’.

6 (b) EFFECTIVE DATE.—The amendments made by

7 this section shall take effect on the date of enactment of

8 this Act, and shall apply to drawback claims filed on or

9 after such date and to drawback entries filed before that

10 date if the liquidation of the entry is not final on such

11 date.

12 SEC. 2. REFUNDS, WAIVERS, OR REDUCTIONS UNDER THE

13 NORTH AMERICAN FREE TRADE AGREEMENT

14 IMPLEMENTATION ACT.

15 (a) IN GENERAL.—Section 313(n)(2) of the Tariff

16 Act of 1930 (19 U.S.C. 1313(n)(2)) is amended by strik17 ing ‘‘(p),’’.

18 (b) EFFECTIVE DATE.—The amendment made by

19 this section shall take effect on the date of enactment of

20 this Act, and shall apply to drawback claims filed on or

21 after that date.

22 SEC. 3. SUBSTITUTION OF FINISHED PETROLEUM DERIVA23 TIVES.

24 (a) IN GENERAL.—Section 313(p)(3)(A)(i)(I) of the

25 Tariff Act of 1930 (19 U.S.C. 1313(p)(3)(A)(i)(I)) is
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1 amended by inserting ‘‘2709,’’ after ‘‘2708,’’ and by strik2 ing ‘‘2901, 2902, and 2909.19.14’’ and inserting ‘‘2901

3 through 2917, and 3811’’.

4 (b) EFFECTIVE DATE.—The amendments made by

5 this section shall take effect on the date of enactment of

6 this Act, and shall apply to drawback claims filed on or

7 after such date and to drawback entries made before such

8 date if the liquidation of the entry is not final on such

9 date.

10 SEC. 4. ALTERNATIVE METHODS FOR DETERMINING SAME

11 KIND AND QUALITY AND COMMERCIAL

12 INTERCHANGEABILITY UNDER SECTION 313

13 OF THE TARIFF ACT OF 1930.

14 (a) IN GENERAL.—Section 313 of the Tariff Act of

15 1930 (19 U.S.C. 1313) is amended by adding at the end

16 the following new subsection:

17 ‘‘(x) ALTERNATIVE METHODS FOR DETERMINING

18 SAME KIND AND QUALITY AND COMMERCIAL INTER19 CHANGEABILITY.—

20 ‘‘(1) IN GENERAL.—For purposes of sub21 sections (b), (j)(2), and (y), any other merchandise

22 is deemed to be of the same kind and quality as, or

23 commercially interchangeable with, the imported

24 merchandise against which drawback is claimed if

25 the other merchandise and the imported merchan-
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1 dise meet any two of the following criteria, selected

2 at the discretion of the manufacturer or drawback

3 claimant:

4 ‘‘(A) Both the imported merchandise and

5 the other merchandise meet the same United

6 States Government standard.

7 ‘‘(B) Both the imported merchandise and

8 the other merchandise meet the same standard

9 recognized by an independent standards organi10 zation or a United States manufacturers’ or

11 producers’ industry trade group.

12 ‘‘(C) Both the imported merchandise and

13 the other merchandise are classified under the

14 same 8-digit subheading of the Harmonized

15 Tariff Schedule of the United States.

16 ‘‘(D) Both the imported merchandise and

17 the other merchandise have the same merchan18 dise identifier, such as a part number, product

19 code number, or catalog number, with allowance

20 permitted for variations in such number identi21 fiers reflecting differences such as color, pack22 aging, or container size.

23 ‘‘(2) OTHER CRITERIA.—Notwithstanding para24 graph (1), nothing in this section shall prohibit the

25 drawback claimant from submitting evidence to en-
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1 able the Customs Service to make a determination

2 that the other merchandise is of the same kind and

3 quality as, or is commercially interchangeable with,

4 the imported merchandise.’’.

5 (b) EFFECTIVE DATE.—The amendment made by

6 this section shall take effect on the date of enactment of

7 this Act, and shall apply to drawback claims filed on or

8 after such date and to drawback entries filed before such

9 date if the liquidation of the entry is not final on such

10 date.

11 SEC. 5. DRAWBACK UNDER NAFTA.

12 (a) IN GENERAL.—Section 313 of the Tariff Act of

13 1930 (19 U.S.C. 1313), as amended by section 4, is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(y) DRAWBACK UNDER NAFTA.—For purposes of

17 section 203(a)(2) of the North American Free Trade

18 Agreement Implementation Act, a drawback claimant or

19 any other person may designate for drawback any im20 ported merchandise on which duty was paid that was en21 tered, or withdrawn from warehouse for consumption,

22 within one year prior to the date on which any commer23 cially interchangeable merchandise was exported, if the ex24 ported merchandise does not receive preference under the

25 North American Free Trade Agreement.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall take effect on the date of enactment of

3 this Act, and shall apply to drawback claims filed on or

4 after such date and to drawback entries filed before such

5 date if the liquidation of the entry is not final on such

6 date.

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