                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                     SUBTITLE II--SPECIAL PROVISIONS
 
                          Part I--Miscellaneous
 
Sec. 1313. Drawback and refunds


(a) Articles made from imported merchandise

    Upon the exportation or destruction under customs supervision of 
articles manufactured or produced in the United States with the use of 
imported merchandise, provided that those articles have not been used 
prior to such exportation or destruction, the full amount of the duties 
paid upon the merchandise so used shall be refunded as drawback, less 1 
per centum of such duties, except that such duties shall not be so 
refunded upon the exportation or destruction of flour or by-products 
produced from imported wheat. Where two or more products result from the 
manipulation of imported merchandise, the drawback shall be distributed 
to the several products in accordance with their relative values at the 
time of separation.

(b) Substitution for drawback purposes

    If imported duty-paid merchandise and any other merchandise (whether 
imported or domestic) of the same kind and quality are used in the 
manufacture or production of articles within a period not to exceed 
three years from the receipt of such imported merchandise by the 
manufacturer or producer of such articles, there shall be allowed upon 
the exportation, or destruction under customs supervision, of any such 
articles, notwithstanding the fact that none of the imported merchandise 
may actually have been used in the manufacture or production of the 
exported or destroyed articles, an amount of drawback equal to that 
which would have been allowable had the merchandise used therein been 
imported, but only if those articles have not been used prior to such 
exportation or destruction; but the total amount of drawback allowed 
upon the exportation or destruction under customs supervision of such 
articles, together with the total amount of drawback allowed in respect 
of such imported merchandise under any other provision of law, shall not 
exceed 99 per centum of the duty paid on such imported merchandise.

(c) Merchandise not conforming to sample or specifications

    Upon the exportation, or destruction under the supervision of the 
Customs Service, of merchandise--
        (1) not conforming to sample or specifications, shipped without 
    the consent of the consignee, or determined to be defective as of 
    the time of importation;
        (2) upon which the duties have been paid;
        (3) which has been entered or withdrawn for consumption; and
        (4) which, within 3 years after release from the custody of the 
    Customs Service, has been returned to the custody of the Customs 
    Service for exportation or destruction under the supervision of the 
    Customs Service;

the full amount of the duties paid upon such merchandise, less 1 
percent, shall be refunded as drawback.

(d) Flavoring extracts; medicinal or toilet preparations; bottled 
        distilled spirits and wines

    Upon the exportation of flavoring extracts, medicinal or toilet 
preparations (including perfumery) manufactured or produced in the 
United States in part from domestic alcohol on which an internal-revenue 
tax has been paid, there shall be allowed a drawback equal in amount to 
the tax found to have been paid on the alcohol so used.
    Upon the exportation of bottled distilled spirits and wines 
manufactured or produced in the United States on which an internal-
revenue tax has been paid or determined, there shall be allowed, under 
regulations to be prescribed by the Commissioner of Internal Revenue, 
with the approval of the Secretary of the Treasury, a drawback equal in 
amount to the tax found to have been paid or determined on such bottled 
distilled spirits and wines. In the case of distilled spirits, the 
preceding sentence shall not apply unless the claim for drawback is 
filed by the bottler or packager of the spirits and unless such spirits 
have been stamped or restamped, and marked, especially for export, under 
regulations prescribed by the Commissioner of Internal Revenue, with the 
approval of the Secretary of the Treasury.

(e) Imported salt for curing fish

    Imported salt in bond may be used in curing fish taken by vessels 
licensed to engage in the fisheries, and in curing fish on the shores of 
the navigable waters of the United States, whether such fish are taken 
by licensed or unlicensed vessels, and upon proof that the salt has been 
used for either of such purposes, the duties on the same shall be 
remitted.

(f) Exportation of meats cured with imported salt

    Upon the exportation of meats, whether packed or smoked, which have 
been cured in the United States with imported salt, there shall be 
refunded, upon satisfactory proof that such meats have been cured with 
imported salt, the duties paid on the salt so used in curing such 
exported meats, in amounts not less than $100.

(g) Materials for construction and equipment of vessels built for 
        foreigners

    The provisions of this section shall apply to materials imported and 
used in the construction and equipment of vessels built for foreign 
account and ownership, or for the government of any foreign country, 
notwithstanding that such vessels may not within the strict meaning of 
the term be articles exported.

(h) Jet aircraft engines

    Upon the exportation of jet aircraft engines manufactured or 
produced abroad that have been overhauled, repaired, rebuilt, or 
reconditioned in the United States with the use of imported merchandise, 
including parts, there shall be refunded, upon satisfactory proof that 
such imported merchandise has been so used, the duties which have been 
paid thereon, in amounts not less than $100.

(i) Time limitation on exportation

    No drawback shall be allowed under the provisions of this section 
unless the completed article is exported within five years after 
importation of the imported merchandise.

(j) Unused merchandise drawback

    (1) If imported merchandise, on which was paid any duty, tax, or fee 
imposed under Federal law because of its importation--
        (A) is, before the close of the 3-year period beginning on the 
    date of importation--
            (i) exported, or
            (ii) destroyed under customs supervision; and

        (B) is not used within the United States before such exportation 
    or destruction;

then upon such exportation or destruction 99 percent of the amount of 
each duty, tax, or fee so paid shall be refunded as drawback. The 
exporter (or destroyer) has the right to claim drawback under this 
paragraph, but may endorse such right to the importer or any 
intermediate party.
    (2) Subject to paragraph (4), if there is, with respect to imported 
merchandise on which was paid any duty, tax, or fee imposed under 
Federal law because of its importation, any other merchandise (whether 
imported or domestic), that--
        (A) is commercially interchangeable with such imported 
    merchandise;
        (B) is, before the close of the 3-year period beginning on the 
    date of importation of the imported merchandise, either exported or 
    destroyed under customs supervision; and
        (C) before such exportation or destruction--
            (i) is not used within the United States, and
            (ii) is in the possession of, including ownership while in 
        bailment, in leased facilities, in transit to, or in any other 
        manner under the operational control of, the party claiming 
        drawback under this paragraph, if that party--
                (I) is the importer of the imported merchandise, or
                (II) received from the person who imported and paid any 
            duty due on the imported merchandise a certificate of 
            delivery transferring to the party the imported merchandise, 
            commercially interchangeable merchandise, or any combination 
            of imported and commercially interchangeable merchandise 
            (and any such transferred merchandise, regardless of its 
            origin, will be treated as the imported merchandise and any 
            retained merchandise will be treated as domestic 
            merchandise);

then upon the exportation or destruction of such other merchandise the 
amount of each such duty, tax, and fee paid regarding the imported 
merchandise shall be refunded as drawback, but in no case may the total 
drawback on the imported merchandise, whether available under this 
paragraph or any other provision of law or any combination thereof, 
exceed 99 percent of that duty, tax, or fee.
    (3) The performing of any operation or combination of operations 
(including, but not limited to, testing, cleaning, repacking, 
inspecting, sorting, refurbishing, freezing, blending, repairing, 
reworking, cutting, slitting, adjusting, replacing components, 
relabeling, disassembling, and unpacking), not amounting to manufacture 
or production for drawback purposes under the preceding provisions of 
this section on--
        (A) the imported merchandise itself in cases to which paragraph 
    (1) applies, or
        (B) the commercially interchangeable merchandise in cases to 
    which paragraph (2) applies,

shall not be treated as a use of that merchandise for purposes of 
applying paragraph (1)(B) or (2)(C).
    (4) Effective upon the entry into force of the North American Free 
Trade Agreement, the exportation to a NAFTA country, as defined in 
section 2(4) of the North American Free Trade Agreement Implementation 
Act [19 U.S.C. 3301(4)], 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) [19 U.S.C. 
3333(a)].

(k) Use of domestic merchandise acquired in exchange for imported 
        merchandise of same kind and quality

    For purposes of subsections (a) and (b) of this section, the use of 
any domestic merchandise acquired in exchange for imported merchandise 
of the same kind and quality shall be treated as the use of such 
imported merchandise if no certificate of delivery is issued with 
respect to such imported merchandise.

(l) Regulations

    Allowance of the privileges provided for in this section shall be 
subject to compliance with such rules and regulations as the Secretary 
of the Treasury shall prescribe, which may include, but need not be 
limited to, the authority for the electronic submission of drawback 
entries and the designation of the person to whom any refund or payment 
of drawback shall be made.

(m) Source of payment

    Any drawback of duties that may be authorized under the provisions 
of this chapter shall be paid from the customs receipts of Puerto Rico, 
if the duties were originally paid into the Treasury of Puerto Rico.

(n) Refunds, waivers, or reductions under North American Free Trade 
        Agreement Implementation Act

    (1) For purposes of this subsection and subsection (o) of this 
section--
        (A) the term ``NAFTA Act'' means the North American Free Trade 
    Agreement Implementation Act [19 U.S.C. 3301 et seq.];
        (B) the terms ``NAFTA country'' and ``good subject to NAFTA 
    drawback'' have the same respective meanings that are given such 
    terms in sections 2(4) and 203(a) of the NAFTA Act [19 U.S.C. 
    3301(4), 3333(a)]; and
        (C) a refund, waiver, or reduction of duty under paragraph (2) 
    of this subsection or paragraph (1) of subsection (o) of this 
    section is subject to section 1508(b)(2)(B) of this title.

    (2) For purposes of subsections (a), (b), (f), (h), (p), and (q) of 
this section, if an article that is exported to a NAFTA country is a 
good subject to NAFTA drawback, no customs duties on the good may be 
refunded, waived, or reduced in an amount that exceeds the lesser of--
        (A) the total amount of customs duties paid or owed on the good 
    on importation into the United States, or
        (B) the total amount of customs duties paid on the good to the 
    NAFTA country.

    (3) If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, then for purposes of subsections (a), (b), (f), (h), (j)(2), 
and (q) of this section, 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 Implementation Act of 1988 does not constitute 
an exportation.

(o) Vessels built for account of resident of NAFTA country

    (1) For purposes of subsection (g) of this section, 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 drawback,

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 suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, then for purposes of subsection (g) of this section, vessels 
built for Canadian account and ownership, or for the Government of 
Canada, may not be considered to be built for any foreign account and 
ownership, or for the government of any foreign country, 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.

(p) Substitution of finished petroleum derivatives

                           (1) In general

        Notwithstanding any other provision of this section, if--
            (A) an article (hereafter referred to in this subsection as 
        the ``exported article'') of the same kind and quality as a 
        qualified article is exported;
            (B) the requirements set forth in paragraph (2) are met; and
            (C) a drawback claim is filed regarding the exported 
        article;

    drawback shall be allowed as described in paragraph (4).

                          (2) Requirements

        The requirements referred to in paragraph (1) are as follows:
            (A) The exporter of the exported article--
                (i) manufactured or produced a qualified article in a 
            quantity equal to or greater than the quantity of the 
            exported article,
                (ii) purchased or exchanged, directly or indirectly, a 
            qualified article from a manufacturer or producer described 
            in subsection (a) or (b) of this section in a quantity equal 
            to or greater than the quantity of the exported article,
                (iii) imported a qualified article in a quantity equal 
            to or greater than the quantity of the exported article, or
                (iv) purchased or exchanged, directly or indirectly, a 
            qualified article from an importer in a quantity equal to or 
            greater than the quantity of the exported article.

            (B) In the case of the requirement described in subparagraph 
        (A)(ii), the manufacturer or producer produced the qualified 
        article in a quantity equal to or greater than the quantity of 
        the exported article.
            (C) In the case of the requirement of subparagraph (A)(i) or 
        (A)(ii), the exported article is exported during the period that 
        the qualified article described in subparagraph (A)(i) or 
        (A)(ii) (whichever is applicable) is manufactured or produced, 
        or within 180 days after the close of such period.
            (D) In the case of the requirement of subparagraph (A)(i) or 
        (A)(ii), the specific petroleum refinery or production facility 
        which made the qualified article concerned is identified.
            (E) In the case of the requirement of subparagraph (A)(iii) 
        or (A)(iv), the exported article is exported within 180 days 
        after the date of entry of an imported qualified article 
        described in subparagraph (A)(iii) or (A)(iv) (whichever is 
        applicable).
            (F) Except as otherwise specifically provided in this 
        subsection, the drawback claimant complies with all requirements 
        of this section, including providing certificates which 
        establish the drawback eligibility of articles for which 
        drawback is claimed.
            (G) The manufacturer, producer, importer, transferor, 
        exporter, and drawback claimant of the qualified article and the 
        exported article maintain all records required by regulation.

               (3) ``Qualified article'' defined, etc.

        For purposes of this subsection--
            (A) The term ``qualified article'' means an article--
                (i) described in--
                    (I) headings 2707, 2708, 2709.00, 2710, 2711, 2712, 
                2713, 2714, 2715, 2901, and 2902, and subheadings 
                2903.21.00, 2909.19.14, 2917.36, 2917.39.04, 2917.39.15, 
                2926.10.00, 3811.21.00, and 3811.90.00 of the Harmonized 
                Tariff Schedule of the United States, or
                    (II) headings 3901 through 3914 of such Schedule (as 
                such headings apply to the primary forms provided under 
                Note 6 to chapter 39 of the Harmonized Tariff Schedule 
                of the United States), and

                (ii) which is--
                    (I) manufactured or produced as described in 
                subsection (a) or (b) of this section from crude 
                petroleum or a petroleum derivative,
                    (II) imported duty-paid, or
                    (III) an article of the same kind and quality as 
                described in subparagraph (B), or any combination 
                thereof, that is transferred, as so certified in a 
                certificate of delivery or certificate of manufacture 
                and delivery in a quantity not greater than the quantity 
                of articles purchased or exchanged.

          The transferred merchandise described in subclause (III), 
            regardless of its origin, so designated on the certificate 
            of delivery or certificate of manufacture and delivery shall 
            be the qualified article for purposes of this section. A 
            party who issues a certificate of delivery, or certificate 
            of manufacture and delivery, shall also certify to the 
            Commissioner of Customs that it has not, and will not, issue 
            such certificates for a quantity greater than the amount 
            eligible for drawback and that appropriate records will be 
            maintained to demonstrate that fact.

            (B) An article, including an imported, manufactured, 
        substituted, or exported article, is of the same kind and 
        quality as the qualified article for which it is substituted 
        under this subsection if it is a product that is commercially 
        interchangeable with or referred to under the same eight-digit 
        classification of the Harmonized Tariff Schedule of the United 
        States as the qualified article. If an article is referred to 
        under the same eight-digit classification of the Harmonized 
        Tariff Schedule of the United States as the qualified article on 
        January 1, 2000, then whether or not the article has been 
        reclassified under another eight-digit classification after 
        January 1, 2000, the article shall be deemed to be an article 
        that is referred to under the same eight-digit classification of 
        such Schedule as the qualified article for purposes of the 
        preceding sentence.
            (C) The term ``drawback claimant'' means the exporter of the 
        exported article or the refiner, producer, or importer of either 
        the qualified article or the exported article. Any person 
        eligible to file a drawback claim under this subparagraph may 
        designate another person to file such claim.

                     (4) Limitation on drawback

        The amount of drawback payable under this subsection shall not 
    exceed the amount of drawback that would be attributable to the 
    article--
            (A) manufactured or produced under subsection (a) or (b) of 
        this section by the manufacturer or producer described in clause 
        (i) or (ii) of paragraph (2)(A), or
            (B) imported under clause (iii) or (iv) of paragraph (2)(A) 
        had the claim qualified for drawback under subsection (j) of 
        this section.

(q) Packaging material

                           (1) In general

        Packaging material, when used on or for articles or merchandise 
    exported or destroyed under subsection (a), (b), (c), or (j) of this 
    section, shall be eligible under such subsection for refund, as 
    drawback, of 99 percent of any duty, tax, or fee imposed under 
    Federal law on the importation of such material.

                     (2) Additional eligibility

        Packaging material produced in the United States, which is used 
    by the manufacturer or any other person on or for articles which are 
    exported or destroyed under subsection (a) or (b) of this section, 
    shall be eligible under such subsection for refund, as drawback, of 
    99 percent of any duty, tax, or fee imposed on the importation of 
    such material used to manufacture or produce the packaging material.

(r) Filing drawback claims

    (1) A drawback entry and all documents necessary to complete a 
drawback claim, including those issued by the Customs Service, shall be 
filed or applied for, as applicable, within 3 years after the date of 
exportation or destruction of the articles on which drawback is claimed, 
except that any landing certificate required by regulation shall be 
filed within the time limit prescribed in such regulation. Claims not 
completed within the 3-year period shall be considered abandoned. No 
extension will be granted unless it is established that the Customs 
Service was responsible for the untimely filing.
    (2) A drawback entry for refund filed pursuant to any subsection of 
this section shall be deemed filed pursuant to any other subsection of 
this section should it be determined that drawback is not allowable 
under the entry as originally filed but is allowable under such other 
subsection.
    (3)(A) The Customs Service may, notwithstanding the limitation set 
forth in paragraph (1), extend the time for filing a drawback claim for 
a period not to exceed 18 months, if--
        (i) the claimant establishes to the satisfaction of the Customs 
    Service that the claimant was unable to file the drawback claim 
    because of an event declared by the President to be a major disaster 
    on or after January 1, 1994; and
        (ii) the claimant files a request for such extension with the 
    Customs Service--
            (I) within 1 year from the last day of the 3-year period 
        referred to in paragraph (1), or
            (II) within 1 year after October 11, 1996,

    whichever is later.

    (B) If an extension is granted with respect to a request filed under 
this paragraph, the periods of time for retaining records set forth in 
subsection (t) of this section and section 1508(c)(3) of this title 
shall be extended for an additional 18 months or, in a case to which 
subparagraph (A)(ii) applies, for a period not to exceed 1 year from the 
date the claim is filed.
    (C) For purposes of this paragraph, the term ``major disaster'' has 
the meaning given that term in section 5122(2) of title 42.

(s) Designation of merchandise by successor

    (1) For purposes of subsection (b) of this section, a drawback 
successor may designate imported merchandise used by the predecessor 
before the date of succession as the basis for drawback on articles 
manufactured by the drawback successor after the date of succession.
    (2) For purposes of subsection (j)(2) of this section, a drawback 
successor may designate--
        (A) imported merchandise which the predecessor, before the date 
    of succession, imported; or
        (B) imported merchandise, commercially interchangeable 
    merchandise, or any combination of imported and commercially 
    interchangeable merchandise for which the predecessor received, 
    before the date of succession, from the person who imported and paid 
    any duty due on the imported merchandise a certificate of delivery 
    transferring to the predecessor such merchandise;

as the basis for drawback on merchandise possessed by the drawback 
successor after the date of succession.
    (3) For purposes of this subsection, the term ``drawback successor'' 
means an entity to which another entity (in this subsection referred to 
as the ``predecessor'') has transferred by written agreement, merger, or 
corporate resolution--
        (A) all or substantially all of the rights, privileges, 
    immunities, powers, duties, and liabilities of the predecessor; or
        (B) the assets and other business interests of a division, 
    plant, or other business unit of such predecessor, but only if in 
    such transfer the value of the transferred realty, personalty, and 
    intangibles (other than drawback rights, inchoate or otherwise) 
    exceeds the value of all transferred drawback rights, inchoate or 
    otherwise.

    (4) No drawback shall be paid under this subsection until either the 
predecessor or the drawback successor (who shall also certify that it 
has the predecessor's records) certifies that--
        (A) the transferred merchandise was not and will not be claimed 
    by the predecessor, and
        (B) the predecessor did not and will not issue any certificate 
    to any other person that would enable that person to claim drawback.

(t) Drawback certificates

    Any person who issues a certificate which would enable another 
person to claim drawback shall be subject to the recordkeeping 
provisions of this chapter, with the retention period beginning on the 
date that such certificate is issued.

(u) Eligibility of entered or withdrawn merchandise

    Imported merchandise that has not been regularly entered or 
withdrawn for consumption shall not satisfy any requirement for use, 
exportation, or destruction under this section.

(v) Multiple drawback claims

    Merchandise that is exported or destroyed to satisfy any claim for 
drawback shall not be the basis of any other claim for drawback; except 
that appropriate credit and deductions for claims covering components or 
ingredients of such merchandise shall be made in computing drawback 
payments.

(w) Limited applicability for certain agricultural products

                           (1) In general

        No drawback shall be available with respect to an agricultural 
    product subject to the over-quota rate of duty established under a 
    tariff-rate quota, except pursuant to subsection (j)(1) of this 
    section.

                     (2) Application to tobacco

        Notwithstanding paragraph (1), drawback shall also be available 
    pursuant to subsection (a) of this section with respect to any 
    tobacco subject to the over-quota rate of duty established under a 
    tariff-rate quota.

(x) Drawbacks for recovered materials

    For purposes of subsections (a), (b), and (c) of this section, the 
term ``destruction'' includes a process by which materials are recovered 
from imported merchandise or from an article manufactured from imported 
merchandise. In determining the amount of duties to be refunded as 
drawback to a claimant under this subsection, the value of recovered 
materials (including the value of any tax benefit or royalty payment) 
that accrues to the drawback claimant shall be deducted from the value 
of the imported merchandise that is destroyed, or from the value of the 
merchandise used, or designated as used, in the manufacture of the 
article.

(June 17, 1930, ch. 497, title III, Sec. 313, 46 Stat. 693; May 17, 
1932, ch. 190, 47 Stat. 158; June 26, 1936, ch. 830, title IV, 
Secs. 402, 403, 49 Stat. 1960; Aug. 8, 1951, ch. 297, 65 Stat. 175; Aug. 
8, 1953, ch. 397, Sec. 12, 67 Stat. 515; Aug. 6, 1956, ch. 1021, Sec. 2, 
70 Stat. 1076; Pub. L. 85-673, Sec. 1, Aug. 18, 1958, 72 Stat. 624; Pub. 
L. 90-630, Sec. 2(b), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 91-692, 
Sec. 3(a), Jan. 12, 1971, 84 Stat. 2076; Pub. L. 96-609, title II, 
Sec. 201(a), Dec. 28, 1980, 94 Stat. 3560; Pub. L. 98-573, title II, 
Sec. 202, Oct. 30, 1984, 98 Stat. 2973; Pub. L. 99-514, title XVIII, 
Sec. 1888(2), Oct. 22, 1986, 100 Stat. 2924; Pub. L. 100-449, title II, 
Sec. 204(c)(3), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 101-382, title 
I, Sec. 134(a)(1), (2), title III, Sec. 484A(a), Aug. 20, 1990, 104 
Stat. 649, 707; Pub. L. 103-182, title II, Sec. 203(b)(3), (c), title 
VI, Sec. 632(a), Dec. 8, 1993, 107 Stat. 2089, 2092, 2192; Pub. L. 103-
465, title IV, Secs. 404(e)(5)(A), 422(d), Dec. 8, 1994, 108 Stat. 4961, 
4965; Pub. L. 104-295, Secs. 7, 10, 21(e)(4), Oct. 11, 1996, 110 Stat. 
3518, 3519, 3530; Pub. L. 106-36, title II, Secs. 2404(a), 2419(a), 
2420(a)-(d), June 25, 1999, 113 Stat. 169, 178, 179; Pub. L. 106-476, 
title I, Secs. 1422(a)(1), (b), 1462(a), Nov. 9, 2000, 114 Stat. 2156, 
2172.)

                       References in Text

    The North American Free Trade Agreement Implementation Act, referred 
to in subsec. (n)(1)(A), is Pub. L. 103-182, Dec. 8, 1993, 107 Stat. 
2057. For complete classification of this Act to the Code, see Short 
Title note set out under section 3301 of this title and Tables.
    Section 204 of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988, referred to in subsecs. (n)(3) and (o)(2), 
is section 204 of Pub. L. 100-449, which is set out in a note under 
section 2112 of this title.
    The Harmonized Tariff Schedule of the United States, referred to in 
subsec. (p)(3)(A)(i), (B), is not set out in the Code. See Publication 
of Harmonized Tariff Schedule note set out under section 1202 of this 
title.


                            Prior Provisions

    Provisions similar to those in this section were contained in act 
Oct. 3, 1913, ch. 16, Sec. IV, O, 38 Stat. 200, which was superseded by 
act Sept. 21, 1922, ch. 356, title III, Sec. 313, 42 Stat. 940, and 
repealed by section 321 thereof. Section 313 of the 1922 act was 
superseded by section 313 of act June 17, 1930, comprising this section, 
and repealed by section 651(a)(1) of the 1930 act.
    Earlier provisions relating to this subject were made by the Tariff 
Acts of Oct. 1, 1890, ch. 1244, Sec. 25, 26 Stat. 617; Aug. 27, 1894, 
ch. 349, Sec. 22, 28 Stat. 551; July 24, 1897, ch. 11, Sec. 30, 30 Stat. 
211; and Aug. 5, 1909, ch. 6, Sec. 25, 36 Stat. 90, which superseded 
provisions of a similar nature contained in R.S. Secs. 3019, 3020, 3026, 
as amended by act Mar. 10, 1880, ch. 37, 21 Stat. 67, and said sections 
3019, 3020, and 3026, were also repealed by act Sept. 21, 1922, ch. 356, 
title IV, Sec. 642, 42 Stat. 989.
    The provisions of section IV, O, of the act of 1913, similar to 
subdivision (g) of this section concerning materials used in the 
construction and equipment of vessels built for foreign account, 
superseded a similar provision of act June 26, 1884, ch. 121, Sec. 17, 
23 Stat. 57.
    The provisions of subsec. (e) of this section concerning imported 
salt used in curing fish superseded somewhat similar provisions in R.S. 
Sec. 3022, which was repealed by act Sept. 21, 1922, ch. 356, title IV, 
Sec. 642, 42 Stat. 989.
    Section 642 of the act of Sept. 21, 1922, also repealed sections 
3015 to 3026, inclusive, 3028 to 3047, inclusive, and 3049 to 3057, 
inclusive of the Revised Statutes, which were concerned with the subject 
of drawback.
    R.S. Sec. 3048, which was not repealed, read as follows: ``So much 
money as may be necessary for the payment of debentures or drawbacks and 
allowances which may be authorized and payable, is hereby appropriated 
for that purpose out of any money in the Treasury, to be expended under 
the direction of the Secretary of that Department, according to the laws 
authorizing debentures or drawbacks and allowances. The collectors of 
the customs shall be the disbursing agents to pay such debentures, 
drawbacks, and allowances. All debenture certificates issued according 
to law shall be received in payment of duties at the customhouse where 
the same have been issued, the laws regulating drawbacks having been 
complied with.''
    Permanent appropriations to pay debentures and other charges arising 
from duties, drawbacks, bounties, and allowances were also contained in 
R.S. Sec. 3689, incorporated in section 711 of former Title 31, Money 
and Finance, prior to repeal effective July 1, 1935, by act June 26, 
1934, ch. 756, Secs. 1, 2, 48 Stat. 1225.


                               Amendments

    2000--Subsec. (p)(3)(A)(i)(I). Pub. L. 106-476, Sec. 1422(a)(1), 
inserted ``2709.00,'' after ``2708,'' and substituted ``and 2902, and 
subheadings 2903.21.00, 2909.19.14, 2917.36, 2917.39.04, 2917.39.15, 
2926.10.00, 3811.21.00, and 3811.90.00'' for ``2902, and 2909.19.14''.
    Subsec. (p)(3)(B). Pub. L. 106-476, Sec. 1422(b), inserted at end 
``If an article is referred to under the same eight-digit classification 
of the Harmonized Tariff Schedule of the United States as the qualified 
article on January 1, 2000, then whether or not the article has been 
reclassified under another eight-digit classification after January 1, 
2000, the article shall be deemed to be an article that is referred to 
under the same eight-digit classification of such Schedule as the 
qualified article for purposes of the preceding sentence.''
    Subsec. (x). Pub. L. 106-476, Sec. 1462(a), added subsec. (x).
    1999--Subsec. (p)(1). Pub. L. 106-36, Sec. 2420(a), substituted 
concluding provisions for former concluding provisions which read as 
follows: ``the amount of the duties paid on, or attributable to, such 
qualified article shall be refunded as drawback to the drawback 
claimant''.
    Subsec. (p)(2)(A)(i) to (iii). Pub. L. 106-36, Sec. 2420(b)(1)(A), 
substituted ``a qualified article'' for ``the qualified article''.
    Subsec. (p)(2)(A)(iv). Pub. L. 106-36, Sec. 2420(b)(1)(B), 
substituted ``a qualified article'' for ``an imported qualified 
article''.
    Subsec. (p)(2)(G). Pub. L. 106-36, Sec. 2420(b)(2), inserted 
``transferor,'' after ``importer,''.
    Subsec. (p)(3)(A)(i)(I). Pub. L. 106-36, Sec. 2419(a), substituted 
``2902, and 2909.19.14'' for ``and 2902''.
    Subsec. (p)(3)(A)(i)(II). Pub. L. 106-36, Sec. 2420(c)(1)(A), 
substituted ``the primary forms provided under Note 6 to chapter 39 of 
the Harmonized Tariff Schedule of the United States'' for ``liquids, 
pastes, powders, granules, and flakes''.
    Subsec. (p)(3)(A)(ii). Pub. L. 106-36, Sec. 2420(c)(1)(B), added 
subcl. (III) and concluding provisions.
    Subsec. (p)(3)(B). Pub. L. 106-36, Sec. 2420(c)(2), substituted 
``article, including an imported, manufactured, substituted, or exported 
article,'' for ``exported article''.
    Subsec. (p)(3)(C). Pub. L. 106-36, Sec. 2420(c)(3), substituted 
``either the qualified article or the exported article.'' for ``such 
article.''
    Subsec. (p)(4)(B). Pub. L. 106-36, Sec. 2420(d), inserted ``had the 
claim qualified for drawback under subsection (j) of this section'' 
before period at end.
    Subsec. (q). Pub. L. 106-36, Sec. 2404(a), designated existing 
provisions as par. (1), inserted heading, realigned margins, and added 
par. (2).
    1996--Subsec. (j)(2). Pub. L. 104-295, Sec. 21(e)(4)(A), realigned 
margins.
    Subsec. (r)(3). Pub. L. 104-295, Sec. 7, added par. (3).
    Subsec. (s)(2)(B). Pub. L. 104-295, Sec. 10, substituted 
``predecessor'' for ``successor'' in two places.
    Subsec. (t). Pub. L. 104-295, Sec. 21(e)(4)(B), made technical 
amendment to reference in original act which appears as reference to 
this chapter.
    1994--Subsec. (w). Pub. L. 103-465, Sec. 422(d), designated existing 
provisions as par. (1), inserted heading, and added par. (2).
    Pub. L. 103-465, Sec. 404(e)(5)(A), added subsec. (w).
    1993--Subsec. (a). Pub. L. 103-182, Sec. 632(a)(1), inserted ``or 
destruction under customs supervision'' after ``Upon the exportation'', 
``provided that those articles have not been used prior to such 
exportation or destruction,'' after ``use of imported merchandise,'', 
and ``or destruction'' after ``refunded upon the exportation'', and 
substituted ``by-products produced from imported wheat'' for ``by-
products produced from wheat imported after ninety days after June 17, 
1930''.
    Subsec. (b). Pub. L. 103-182, Sec. 632(a)(2), substituted ``any 
other merchandise (whether imported or domestic)'' for ``duty-free or 
domestic merchandise'', inserted ``, or destruction under customs 
supervision,'' after ``there shall be allowed upon the exportation'', 
substituted ``production of the exported or destroyed articles'' for 
``production of the exported articles'', inserted ``, but only if those 
articles have not been used prior to such exportation or destruction'' 
after ``merchandise used therein been imported'' and ``or destruction 
under customs supervision'' after ``but the total amount of drawback 
allowed upon the exportation''.
    Subsec. (c). Pub. L. 103-182, Sec. 632(a)(3), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``Upon the 
exportation of merchandise not conforming to sample or specifications or 
shipped without the consent of the consignee upon which the duties have 
been paid and which have been entered or withdrawn for consumption and, 
within ninety days after release from customs custody, unless the 
Secretary authorizes in writing a longer time, returned to customs 
custody for exportation, the full amount of the duties paid upon such 
merchandise shall be refunded as drawback, less 1 per centum of such 
duties.''
    Subsec. (j). Pub. L. 103-182, Sec. 203(c)(1), (2), substituted 
``Subject to paragraph (4), if'' for ``If'' in par. (2) and added par. 
(4). See Construction of 1993 Amendment note below.
    Pub. L. 103-182, Sec. 632(a)(4), amended subsec. (j) generally, 
substituting present provisions for provisions which authorized 
drawbacks for imported merchandise which, upon either exportation or 
destruction, was in the same condition as when imported.
    Subsec. (l). Pub. L. 103-182, Sec. 632(a)(5), substituted ``the 
authority for the electronic submission of drawback entries'' for ``the 
fixing of a time limit within which drawback entries or entries for 
refund under any of the provisions of this section or section 1309(b) of 
this title shall be filed and completed,''.
    Subsecs. (n), (o). Pub. L. 103-182, Sec. 203(b)(3), amended subsecs. 
(n) and (o) generally, substituting present provisions for provisions 
which related to, in subsec. (n), drawback-eligible goods under United 
States-Canada Free-Trade Agreement Implementation Act of 1988 and, in 
subsec. (o), vessels built for Canadian account or for Government of 
Canada.
    Subsec. (p). Pub. L. 103-182, Sec. 632(a)(6), amended subsec. (p) 
generally, substituting present provisions for provisions relating to 
substitution of crude petroleum or petroleum derivatives.
    Subsecs. (q) to (v). Pub. L. 103-182, Sec. 632(a)(7), added subsecs. 
(q) to (v).
    1990--Subsec. (n). Pub. L. 101-382, Sec. 134(a)(1), inserted ``, 
except an article'' before ``made from'' and substituted comma for ``of 
1988'' before ``does not''.
    Subsec. (o). Pub. L. 101-382, Sec. 134(a)(2), inserted at end ``This 
subsection shall apply to vessels delivered to Canadian account or 
owner, or to the Government of Canada, on and after January 1, 1994 (or, 
if later, the date proclaimed by the President under section 
204(b)(2)(B) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988).''
    Subsec. (p). Pub. L. 101-382, Sec. 484A(a), added subsec. (p).
    1988--Subsecs. (n), (o). Pub. L. 100-449 added subsecs. (n) and (o).
    1986--Subsec. (j)(2), (3). Pub. L. 99-514, Sec. 1888(2)(A), 
redesignated par. (3) as (2) and redesignated par. (4) relating to 
imported packaging material as (3).
    Subsec. (j)(4). Pub. L. 99-514, Sec. 1888(2), redesignated par. (4) 
relating to imported packaging material as (3) and amended par. (4) 
relating to the performing of incidental operations generally. Prior to 
amendment, such par. (4) read as follows: ``The performing of incidental 
operations (including, but not limited to, testing, cleaning, repacking, 
and inspecting) on the imported merchandise itself, not amounting to 
manufacture or production for drawback purposes under the preceding 
provisions of this section, shall not be treated as a use of that 
merchandise for purposes of applying paragraph (1)(B).''
    1984--Subsec. (j)(2) to (4). Pub. L. 98-573, Sec. 202(1), 
redesignated par. (2), relating to the performing of incidental 
operations, as (4), and inserted after par. (1) new pars. (3) and (4).
    Subsecs. (k) to (m). Pub. L. 98-573, Sec. 202(2), (3), added subsec. 
(k) and redesignated former subsecs. (k) and (l) as (l) and (m), 
respectively.
    1980--Subsecs. (j) to (l). Pub. L. 96-609, Sec. 201(a), added 
subsec. (j) and redesignated former subsecs. (j) and (k) as (k) and (l), 
respectively.
    1971--Subsecs. (h) to (k). Pub. L. 91-692 added subsec. (h) and 
redesignated former subsecs. (h) to (j) as (i) to (k), respectively.
    1968--Subsec. (d). Pub. L. 90-630 permitted, under Treasury 
regulations, the drawback of tax with regard to distilled spirits 
exported as ships' stores where the stamping, restamping, or marking is 
done after the spirits have been removed from the original bottling 
plant.
    1958--Subsec. (b). Pub. L. 85-673 substituted ``merchandise'' for 
``sugar, or metal, or ore containing metal, or flaxseed or linseed, or 
flaxseed or linseed oil, or printing papers coated or uncoated,'' after 
``duty-paid'' and ``allowable had the''.
    1956--Subsec. (b). Act Aug. 6, 1956, inserted ``or printing papers, 
coated or uncoated,'' after ``linseed oil,'' wherever appearing.
    1953--Subsec. (b). Act Aug. 8, 1953, Sec. 12(a), extended from one 
year to three years the period during which substitution for drawback 
purposes may be made.
    Subsec. (c). Act Aug. 8, 1953, Sec. 12(b), extended the period 
during which the merchandise can be returned to customs custody for 
exportation from thirty days to ninety days or such longer period as the 
Secretary of the Treasury may allow; and provided for the refunding of 
duties in cases where the merchandise upon which the duties have been 
paid was sent to the consignee without his consent.
    Subsec. (h). Act Aug. 8, 1953, Sec. 12(c), substituted reference to 
``this section'' for ``this section or of section 152a of this title 
(relating to drawback on shipments to the Philippine Islands),''; struck 
out another reference to the Philippine Islands; and substituted ``five 
years'' for ``three years''.
    Subsec. (i). Act Aug. 8, 1953, Sec. 12(c), broadened the authority 
of the Secretary of the Treasury to make such regulations for the 
administration of the drawback provisions as may be necessary.
    1951--Subsec. (b). Act Aug. 8, 1951, extended the provisions of such 
subsection to flaxseed and linseed, and flaxseed and linseed oil, and 
omitted ``(or shipment to the Philippine Islands)'' before ``of any such 
articles''.
    1936--Subsec. (d). Act June 26, 1936, inserted second par.

                         Change of Name

    ``Puerto Rico'' substituted in subsec. (j) for ``Porto Rico'' 
pursuant to act May 17, 1932, which is classified to section 731a of 
Title 48, Territories and Insular Possessions.


                    Effective Date of 2000 Amendment

    Pub. L. 106-476, title I, Sec. 1422(a)(2), Nov. 9, 2000, 114 Stat. 
2156, provided that: ``The amendments made by paragraph (1) [amending 
this section] shall take effect on the date of the enactment of this Act 
[Nov. 9, 2000], and shall apply to--
        ``(A) any drawback claim filed on or after such date of 
    enactment; and
        ``(B) any drawback entry filed before such date of enactment if 
    the liquidation of the entry is not final on such date of 
    enactment.''
    Pub. L. 106-476, title I, Sec. 1462(b), Nov. 9, 2000, 114 Stat. 
2173, provided that: ``The amendment made by this section [amending this 
section] shall apply to drawback claims filed on or after the date of 
the enactment of this Act [Nov. 9, 2000].''
    Amendment by title I of Pub. L. 106-476, except as otherwise 
provided, applicable with respect to goods entered, or withdrawn from 
warehouse, for consumption, on or after the 15th day after Nov. 9, 2000, 
see section 1471 of Pub. L. 106-476, set out as a note under section 58c 
of this title.


                    Effective Date of 1999 Amendment

    Pub. L. 106-36, title II, Sec. 2404(b), June 25, 1999, 113 Stat. 
169, provided that: ``The amendment made by this section [amending this 
section] applies with respect to goods entered, or withdrawn from 
warehouse for consumption, on or after the 15th day after the date of 
the enactment of this Act [June 25, 1999].''
    Pub. L. 106-36, title II, Sec. 2419(b), June 25, 1999, 113 Stat. 
178, provided that: ``The amendment made by this section [amending this 
section] shall take effect on the date of the enactment of this Act 
[June 25, 1999], and shall apply to drawback claims filed on and after 
such date.''
    Pub. L. 106-36, title II, Sec. 2420(e), June 25, 1999, 113 Stat. 
179, provided that: ``The amendments made by this section [amending this 
section] shall take effect as if included in the amendment made by 
section 632(a)(6) of the North American Free Trade Agreement 
Implementation Act [Pub. L. 103-182, amending this section]. For 
purposes of section 632(b) of that Act [set out as a note below], the 3-
year requirement set forth in section 313(r) of the Tariff Act of 1930 
[19 U.S.C. 1313(r)] shall not apply to any drawback claim filed within 6 
months after the date of the enactment of this Act [June 25, 1999] for 
which that 3-year period would have expired.''


                    Effective Date of 1994 Amendment

    Section 404(e)(5)(B) of Pub. L. 103-465 provided that: ``The 
amendment made by subparagraph (A) [amending this section] shall take 
effect on the earlier of the date of entry into force of the WTO 
Agreement with respect to the United States [Jan. 1, 1995] or January 1, 
1995.''
    Amendment by section 422(d) of Pub. L. 103-465 effective Sept. 13, 
1995, see section 422(e) of Pub. L. 103-465, set out as a note under 
section 1314i of Title 7, Agriculture.


                    Effective Date of 1993 Amendment

    Amendment by section 203(b)(3) of Pub. L. 103-182 applicable (1) 
with respect to exports from the United States to Canada on Jan. 1, 
1996, if Canada is a NAFTA country on that date and after such date for 
so long as Canada continues to be a NAFTA country and (2) with respect 
to exports from the United States to Mexico on Jan. 1, 2001, if Mexico 
is a NAFTA country on that date and after such date for so long as 
Mexico continues to be a NAFTA country, see section 213(c) of Pub. L. 
103-182, set out as an Effective Date note under section 3331 of this 
title.
    Amendment by section 203(c) of Pub. L. 103-182 effective on the date 
the North American Free Trade Agreement enters into force with respect 
to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. 103-
182, set out as an Effective Date note under section 3331 of this title.
    Section 632(b) of Pub. L. 103-182 provided that: ``Notwithstanding 
section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) or any other 
provision of law, the amendment made by paragraph (6) of subsection (a) 
[amending this section] shall apply to--
        ``(1) claims filed or liquidated on or after January 1, 1988, 
    and
        ``(2) claims that are unliquidated, under protest, or in 
    litigation on the date of the enactment of this Act [Dec. 8, 
    1993].''


                    Effective Date of 1990 Amendment

    Amendment by section 484A(a) of Pub. L. 101-382 applicable to claims 
filed or liquidated on or after Jan. 1, 1988, and claims that are 
unliquidated, under protest, or in litigation on Aug. 20, 1990, see 
section 484A(c) of Pub. L. 101-382, set out as a note under section 1309 
of this title.


            Effective and Termination Dates of 1988 Amendment

    Amendment by Pub. L. 100-449 effective on date the United States-
Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to 
cease to have effect on date Agreement ceases to be in force, see 
section 501(a), (c) of Pub. L. 100-449, set out in a note under section 
2112 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-573 effective on 15th day after Oct. 30, 
1984, see section 214(a), (b) of Pub. L. 98-573, set out as a note under 
section 1304 of this title.


                    Effective Date of 1980 Amendment

    Section 201(b) of Pub. L. 96-609 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to articles entered, or withdrawn from warehouse, for consumption on or 
after the date of the enactment of this Act [Dec. 28, 1980].''


                    Effective Date of 1971 Amendment

    Section 3(b) of Pub. L. 91-692 provided that: ``The amendments made 
by subsection (a) [amending this section] shall apply with respect to 
articles exported on or after the date of the enactment of this Act 
[Jan. 12, 1971].''


                    Effective Date of 1968 Amendment

    For effective date of amendment by Pub. L. 90-630, see section 4 of 
Pub. L. 90-630, set out as a note under section 5008 of Title 26, 
Internal Revenue Code.


                    Effective Date of 1958 Amendment

    Section 2 of Pub. L. 85-673 provided that: ``The amendment made by 
the first section of this Act [amending this section] shall be effective 
with respect to articles exported on or after the 30th day after the 
date of the enactment of this Act [Aug. 18, 1958].''


           Effective Date of 1953 Amendment; Savings Provision

    Amendment by act Aug. 8, 1953, effective on and after thirtieth day 
following Aug. 8, 1953, and savings provision, see notes set out under 
section 1304 of this title.


                     Construction of 1993 Amendment

    Amendment by section 203(c) of Pub. L. 103-182 to be made after 
amendment by section 632(a) of Pub. L. 103-182 is executed, see section 
212 of Pub. L. 103-182, set out as a note under section 58c of this 
title.

                          Transfer of Functions

    Functions of all officers of Department of the Treasury and 
functions of all agencies and employees of such Department transferred, 
with certain exceptions, to Secretary of the Treasury, with power vested 
in him to authorize their performance or performance of any of his 
functions, by any of such officers, agencies, and employees, by Reorg. 
Plan No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 
Stat. 1280, 1281, set out in the Appendix to Title 5, Government 
Organization and Employees. Commissioner of Internal Revenue, referred 
to in this section, is an officer of Department of the Treasury.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1801-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of Title 26, 
Internal Revenue Code.

                  Section Referred to in Other Sections

    This section is referred to in section 1508 of this title; title 7 
section 5676.
