MERCHANDISE PROCESSING FEE.

SEC. 203. MERCHANDISE PROCESSING FEE. (a) In General.—Section 13031(b)(10) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended by striking subparagraph (B) and inserting the following: “(B) No fee may be charged under paragraph (9) or (10) of subsection (a) with respect to goods that qualify as originating goods under section 202 of the United States-Mexico-Canada Agreement Implementation Act or qualify for duty-free treatment under Annex 6-A of the USMCA (as defined in section 3 of that Act). Any service for which an exemption from such fee is provided by reason of this paragraph may not be funded with money contained in the Customs User Fee Account.” . (b) [19 U.S.C. 58c note] Effective Date.— (1) In general.—The amendment made by subsection (a) shall— (A) take effect on the date on which the USMCA enters into force; and (B) apply with respect to a good entered or released on or after that date. (2) Transition from nafta treatment.—In the case of a good entered or released before the date on which the USMCA enters into force— (A) the amendments made by subsection (a) to section 13031(b)(10)(B) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)(B)) shall not apply with respect to the good; and (B) section 13031(b)(10)(B) of such Act, as in effect on the day before that date, shall continue to apply on and after that date with respect to the good. (3) Entered or released defined.—In this subsection, the term “entered or released” has the meaning given that term in section 13031(b)(8)(E) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(8)(E)).