H. R. 3450—34
‘‘(3) If Canada ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-Trade Agree-
ment thereafter terminates, then for purposes of subsections (a),
(b), (f), (h), (j)(2), and (q), the shipment to Canada during the
period such Agreement is in operation of an article made from
or substituted for, as appropriate, a drawback eligible good under
section 204(a) of the United States-Canada Free-Trade Implementa-
tion Act of 1988 does not constitute an exportation.
‘‘(o)(1) For purposes of subsection (g), if—
‘‘(A) a vessel is built for the account and ownership of
a resident of a NAFTA country or the government of a NAFTA
country, and
‘‘(B) imported materials that are used in the construction
and equipment of the vessel are goods subject to NAFTA draw-
back,
the amount of customs duties refunded, waived, or reduced on
such materials may not exceed the lesser of the total amount
of customs duties paid or owed on the materials on importation
into the United States or the total amount of customs duties paid
on the vessel to the NAFTA country.
‘‘(2) If Canada ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-Trade Agree-
ment thereafter terminates, then for purposes of subsection (g),
vessels built for Canadian account and ownership, or for the Govern-
ment of Canada, may not be considered to be built for any foreign
account and ownership, or for the government of any foreign coun-
try, except to the extent that the materials in such vessels are
drawback eligible goods under section 204(a) of the United States-
Canada Free-Trade Implementation Act of 1988.’’.
(4) MANIPULATION IN WAREHOUSE.—Section 562 of the Tar-
iff Act of 1930 (19 U.S.C. 1562) is amended—
(A) in the second sentence by striking out ‘‘without
payment of duties—’’ and inserting a dash;
(B) by striking out paragraphs (1), (2), and (3) and
inserting the following:
‘‘(1) without payment of duties for exportation to a NAFTA
country, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, if the merchandise is
of a kind described in any of paragraphs (1) through (8) of
section 203(a) of that Act;
‘‘(2) for exportation to a NAFTA country if the merchandise
consists of goods subject to NAFTA drawback, as defined in
section 203(a) of that Act, except that—
‘‘(A) the merchandise may not be withdrawn from ware-
house without assessment of a duty on the merchandise
in its condition and quantity, and at its weight, at the
time of withdrawal from the warehouse with such additions
to or deductions from the final appraised value as may
be necessary by reason of change in condition, and
‘‘(B) duty shall be paid on the merchandise before
the 61st day after the date of exportation, but upon the
presentation, before such 61st day, of satisfactory evidence
of the amount of any customs duties paid to the NAFTA
country on the merchandise, the customs duty may be
waived or reduced (subject to section 508(b)(2)(B)) in an
amount that does not exceed the lesser of—
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H. R. 3450—35
‘‘(i) the total amount of customs duties paid or
owed on the merchandise on importation into the
United States, or
‘‘(ii) the total amount of customs duties paid on
the merchandise to the NAFTA country;
‘‘(3) without payment of duties for exportation to any for-
eign country other than to a NAFTA country or to Canada
when exports to that country are subject to paragraph (4);
‘‘(4) without payment of duties for exportation to Canada
(if that country ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-Trade
Agreement thereafter terminates), but the exemption from the
payment of duties under this paragraph applies only in the
case of an exportation during the period such Agreement is
in operation of merchandise that—
‘‘(A) is only cleaned, sorted, or repacked in a bonded
warehouse, or
‘‘(B) is a drawback eligible good under section 204(a)
of the United States-Canada Free-Trade Agreement
Implementation Act of 1988; and
‘‘(5) without payment of duties for shipment to the Virgin
Islands, American Samoa, Wake Island, Midway Island, King-
man Reef, Johnston Island or the island of Guam.’’; and
(B) in the third sentence by striking out ‘‘paragraph
(1) of the preceding sentence’’ and inserting ‘‘paragraph
(4) of the preceding sentence’’.
(5) FOREIGN TRADE ZONES.—Section 3(a) of the Act of June
18, 1934 (commonly known as the ‘‘Foreign Trade Zones Act’’;
19 U.S.C. 81c(a)) is amended—
(A) in the last proviso—
(i) by inserting after ‘‘That’’ the following: ‘‘, if
Canada ceases to be a NAFTA country and the suspen-
sion of the operation of the United States-Canada Free-
Trade Agreement thereafter terminates,’’; and
(ii) by striking out ‘‘on or after January 1, 1994,
or such later date as may be proclaimed by the Presi-
dent under section 204(b)(2)(B) of such Act of 1988,’’
and inserting ‘‘during the period such Agreement is
in operation’’; and
(B) by inserting before such last proviso the following
new proviso: ‘‘: Provided, further, That no merchandise
that consists of goods subject to NAFTA drawback, as
defined in section 203(a) of the North American Free Trade
Agreement Implementation Act, that is manufactured or
otherwise changed in condition shall be exported to a
NAFTA country, as defined in section 2(4) of that Act,
without an assessment of a duty on the merchandise in
its condition and quantity, and at its weight, at the time
of its exportation (or if the privilege in the first proviso
to this subsection was requested, an assessment of a duty
on the merchandise in its condition and quantity, and
at its weight, at the time of its admission into the zone)
and the payment of the assessed duty before the 61st
day after the date of exportation of the article, except
that upon the presentation, before such 61st day, of satis-
factory evidence of the amount of any customs duties paid
or owed to the NAFTA country on the article, the customs
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H. R. 3450—36
duty may be waived or reduced (subject to section
508(b)(2)(B) of the Tariff Act of 1930) in an amount that
does not exceed the lesser of (1) the total amount of customs
duties paid or owed on the merchandise on importation
into the United States, or (2) the total amount of customs
duties paid on the article to the NAFTA country:’’.
(c) CONSEQUENTIAL AMENDMENT WITH IMMEDIATE EFFECT.—
Section 313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is
amended—
(1) by striking out ‘‘If’’ in paragraph (2) and inserting
‘‘Subject to paragraph (4), if’’; and
(2) by adding at the end the following new paragraph:
‘‘(4) Effective upon the entry into force of the North Amer-
ican Free Trade Agreement, the exportation to a NAFTA coun-
try, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, of merchandise that is
fungible with and substituted for imported merchandise, other
than merchandise described in paragraphs (1) through (8) of
section 203(a) of that Act, shall not constitute an exportation
for purposes of paragraph (2).’’.
(d) ELIMINATION OF DRAWBACK FOR SECTION 22 FEES.—Not-
withstanding any other provision of law, the Secretary of the Treas-
ury may not, on condition of export, refund or reduce a fee applied
pursuant to section 22 of the Agricultural Adjustment Act (7 U.S.C.
624) with respect to goods included under subsection (a) that are
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.
(e) INAPPLICABILITY
TO COUNTERVAILING
AND ANTIDUMPING
DUTIES.—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.
SEC. 204. CUSTOMS USER FEES.
Paragraph (10) of section 13031(b) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended
to read as follows:
‘‘(10)(A) The fee charged under subsection (a) (9) or (10) with
respect to goods of Canadian origin (as determined under section
202 of the United States-Canada Free-Trade Agreement) when the
United States-Canada Free-Trade Agreement is in force shall be
in accordance with section 403 of that Agreement.
‘‘(B) For goods qualifying under the rules of origin set out
in section 202 of the North American Free Trade Agreement
Implementation Act, the fee under subsection (a) (9) or (10)—
‘‘(i) may not be charged with respect to goods that qualify
to be marked as goods of Canada pursuant to Annex 311
of the North American Free Trade Agreement, for such time
as Canada is a NAFTA country, as defined in section 2(4)
of such Implementation Act; and
‘‘(ii) may not be increased after December 31, 1993, and
may not be charged after June 29, 1999, with respect to goods
that qualify to be marked as goods of Mexico pursuant to
such Annex 311, for such time as Mexico is a NAFTA country.
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H. R. 3450—37
Any service for which an exemption from such fee is provided
by reason of this paragraph may not be funded with money con-
tained in the Customs User Fee Account.’’.
SEC. 205. ENFORCEMENT.
(a) RECORDKEEPING REQUIREMENTS.—Section 508 of the Tariff
Act of 1930 (19 U.S.C. 1508) is amended as follows:
(1) Subsection (b) is amended to read as follows:
‘‘(b) EXPORTATIONS TO FREE TRADE COUNTRIES.—
‘‘(1) DEFINITIONS.—As used in this subsection—
‘‘(A) The term ‘associated records’ means, in regard
to an exported good under paragraph (2), records associated
with—
‘‘(i) the purchase of, cost of, value of, and payment
for, the good;
‘‘(ii) the purchase of, cost of, value of, and payment
for, all material, including indirect materials, used in
the production of the good; and
‘‘(iii) the production of the good.
For purposes of this subparagraph, the terms ‘indirect
material’, ‘material’, ‘preferential tariff treatment’, ‘used’,
and ‘value’ have the respective meanings given them in
articles 415 and 514 of the North American Free Trade
Agreement.
‘‘(B) The term ‘NAFTA Certificate of Origin’ means
the certification, established under article 501 of the North
American Free Trade Agreement, that a good qualifies
as an originating good under such Agreement.
‘‘(2) EXPORTS TO NAFTA COUNTRIES.—
‘‘(A) IN GENERAL.—Any person who completes and signs
a NAFTA Certificate of Origin for a good for which pref-
erential treatment under the North American Free Trade
Agreement is claimed shall make, keep, and render for
examination and inspection all records relating to the origin
of the good (including the Certificate or copies thereof)
and the associated records.
‘‘(B) CLAIMS FOR CERTAIN WAIVERS, REDUCTIONS, OR
REFUNDS OF DUTIES OR FOR CREDIT AGAINST BONDS.—
‘‘(i) IN
GENERAL.—Any person that claims with
respect to an article—
‘‘(I) a waiver or reduction of duty under the
last paragraph of section 311, section 312(b) (1)
or (4), section 562(2), or the last proviso to section
3(a) of the Foreign Trade Zones Act;
‘‘(II) a credit against a bond under section
312(d); or
‘‘(III) a refund, waiver, or reduction of duty
under section 313 (n)(2) or (o)(1);
must disclose to the Customs Service the information
described in clause (ii).
‘‘(ii) INFORMATION
REQUIRED.—Within 30 days
after making a claim described in clause (i) with
respect to an article, the person making the claim
must disclose to the Customs Service whether that
person has prepared, or has knowledge that another
person has prepared, a NAFTA Certificate of Origin
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