Nafta 303, 304

NAFTA Article 303, 304
Article 303: Restriction on Drawback and Duty Deferral Programs
1. Except as otherwise provided in this Article, no Party may refund the amount of customs duties paid, or waive or reduce the amount of customs duties owed, on a good imported into its territory, on condition that the good is:
a) subsequently exported to the territory of another Party,
b) used as amaterial in the production of another good that is subsequently exported to the territory of another Party, or
c) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party, in an amount that exceeds the lesser of the total amount of customs duties paid or owed on the good on importation into itsterritory and the total amount of customs duties paid to another Party on the good that has been subsequently exported to the territory of that other Party.
2. No Party may, on condition of export, refund, waive or reduce:
a) an antidumping or countervailing duty that is applied pursuant to a Party's domestic law and that is not applied inconsistently with Chapter Nineteen (Review and DisputeSettlement in Antidumping and Countervailing Duty Matters);
b) a premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels;
c) a fee applied pursuant to section 22 of the U.S. Agricultural Adjustment Act, subject to Chapter Seven (Agriculture and Sanitary andPhytosanitary Measures); or
d) customs duties paid or owed on a good imported into its territory and substituted by an identical or similar good that is subsequently exported to the territory of another Party.
3. Where a good is imported into the territory of a Party pursuant to a duty deferral program and is subsequently exported to the territory of another Party, or is used as a material in theproduction of another good that is subsequently exported to the territory of another Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party, the Party from whose territory the good is exported:
a) shall assess the customs duties as if the exported good had been withdrawn fordomestic consumption; and
b) may waive or reduce such customs duties to the extent permitted under paragraph 1.
4. In determining the amount of customs duties that may be refunded, waived or reduced pursuant to paragraph 1 on a good imported into its territory, each Party shall require presentation of satisfactory evidence of the amount of customs duties paid to another Party on the good that hasbeen subsequently exported to the territory of that other Party.
5. Where satisfactory evidence of the customs duties paid to the Party to which a good is subsequently exported under a duty deferral program described in paragraph 3 is not presented within 60 days after the date of exportation, the Party from whose territory the good was exported:
a) shall collect customs duties as if the exportedgood had been withdrawn for domestic consumption; and
b) may refund such customs duties to the extent permitted under paragraph 1 on the timely presentation of such evidence under its laws and regulations.
6. This Article does not apply to:
a) a good entered under bond for transportation and exportation to the territory of another Party;
b) a good exported to the territory of another Party inthe same condition as when imported into the territory of the Party from which the good was exported (processes such as testing, cleaning, repacking or inspecting the good, or preserving it in its same condition, shall not be considered to change a good's condition). Except as provided in Annex 703.2, Section A, paragraph 12, where such a good has been commingled with fungible goods and exported...