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 a material 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 its territory 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 Dispute Settlement 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
and Phytosanitary 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
the production 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had been withdrawn for domestic consumption; and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 has been 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 exported good 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 in the
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
in the same condition, its origin for purposes of this subparagraph,
may be determined on the basis of the inventory methods provided
for in the Uniform Regulations established under Article 511 (Uniform
Regulations);
c) a good imported into the territory of a Party that is
deemed to be exported from its territory, or used as a material
in the production of another good that is deemed to be 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 deemed to be exported to the territory of another
Party, by reason of
(i) delivery to a duty-free shop,
(ii) delivery for ship's stores or supplies for ships or aircraft,
or
(iii) delivery for use in joint undertakings of two or more
of the Parties and that will subsequently become the property
of the Party into whose territory the good was deemed to be imported;
d) a refund of customs duties by a Party on a particular
good imported into its territory and subsequently exported to
the territory of another Party, where that refund is granted by
reason of the failure of such good to conform to sample or specification,
or by reason of the shipment of such good without the consent
of the consignee;
e) an originating good that is imported into the territory
of a Party and is subsequently exported to the territory of another
Party, or used as a material in the production 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; or
f) a good set out in Annex 303.6.
7. Except for paragraph 2(d), this Article shall apply as
of the date set out in each Party's Section of Annex 303.7.
8. Notwithstanding any other provision of this Article and
except as specifically provided in Annex 303.8, no Party may refund
the amount of customs duties paid, or waive or reduce the amount
of customs duties owed, on a non-originating good provided for
in item 8540.11.aa (color cathode-ray television picture tubes,
including video monitor tubes, with a diagonal exceeding 14 inches)
or 8540.11.cc (color cathoderay television picture tubes for high
definition television, with a diagonal exceeding 14 inches) that
is imported into the Party's territory and subsequently exported
to the territory of another Party, or is used as a material in
the production 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.
9. For purposes of this Article:
customs duties are the customs duties that would be
applicable to a good entered for consumption in the customs territory
of a Party if the good were not exported to the territory of another
party;
identical or similar goods means "identical or
similar goods" as defined in Article 415 (Rules of Origin
Definitions);
material means "material" as defined in Article
415;
used means "used" as defined in Article 415.
10. For purposes of the Article:
Where a good referred to by a tariff item number in this Article
is described in parentheses following the tariff item number,
the description is provided for purposes of reference only.