CSMS Message: 95-000725

TO : ALL ABI BROKERS.

FROM : JOHN PIERCE

SUBJECT : STA-95 HTS CORRECTIONS

DATE : 07/21/95

JULY 21, 1995
5202011

FO:TC:C:S JP

TO : BULLETIN BOARD OTO5, BROKERS

FROM : DIRECTOR, CARGO CONTROL AND ENTRY

RE : MODIFICATIONS TO THE 1995 HTS

PASS TO: ALL USERS OF THE HARMONIZED TARIFF SCHEDULE

1. PLEASE MAKE THE FOLLOWING CHANGES TO THE 1995 HARMONIZED
TARIFF SCHEDULE SUPPLEMENT 1:

PAGE HTS ITEM CORRECTION

61-38 6110.90.9036 CATEGORY NUMBER SHOULD
6110.90.9038 READ "(846)", NOT "(845).

62-27 6204.39.30 RATE FOR MEXICO (MX) SHOULD
READ "16.4 ", NOT "17.9 ".

DO NOT DISCARD PAGE 16 OF THE HARMONIZED TARIFF
SCHEDULE(1995); IT CONTAINS INFORMATION OMITTED IN THE
SUPPLEMENT. (SEE PAGE 16 OF THE HTS (1995) ATTACHED BELOW)

2. QUESTIONS REGARDING THIS NOTICE SHOULD BE DIRECTED TO
STATISTICS, TRADE COMPLIANCE, AT (202) 927-1249.

THOMAS P. BANNER

ATTACHED

HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (1995)
ANNOTATED FOR STATISTICAL REPORTING PURPOSES

PAGE 16

GENERAL NOTES(CON):

7. PRODUCTS OF COUNTRIES DESIGNATED AS BENEFICIARY COUNTRIES
FOR PURPOSES OF THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT
(CBERA).

(A) THE FOLLOWING COUNTRIES AND TERRITORIES OR SUCCESSOR
POLITICAL ENTITIES ARE DESIGNATED BENEFICIARY
COUNTRIES FOR THE PURPOSES OF THE CBERA, PURSUANT TO
SECTION 212 OF THAT ACT (19 U.S.C. 2702):

ANTIGUA AND BARBUDA GRENADA NICARAGUA
ARUBA GUATEMALA PANAMA
BAHAMAS GUYANA ST. KITTS AND
BARBADOS HAITI NEVIS
BELIZE HONDURAS SAINT LUCIA
COSTA RICA JAMAICA SAINT VINCENT
DOMINICA MONTSERRAT AND THE GRENADINES
DOMINICAN REPUBLIC NETHERLANDS ANTILLES
EL SALVADOR TRINIDAD AND
TOBAGO
VIRGIN ISLANDS,
BRITISH

(B) (I) UNLESS OTHERWISE EXCLUDED FROM ELIGIBILITY BY THE
PROVISIONS OF SUBDIVISIONS (D) OR (E) OF THIS
NOTE, ANY ARTICLE WHICH IS THE GROWTH, PRODUCT, OR
MANUFACTURE OF A BENEFICIARY COUNTRY SHALL BE
ELIGIBLE FOR DUTY-FREE TREATMENT IF THAT ARTICLE
IS PROVIDED FOR IN A SUBHEADING FOR WHICH A RATE
OF DUTY OF "FREE" APPEARS IN THE "SPECIAL"
SUBCOLUMN FOLLOWED BY THE SYMBOL "E" OR "E*" IN
PARENTHESES, AND IF--

(A) THAT ARTICLE IS IMPORTED DIRECTLY FROM A
BENEFICIARY COUNTRY INTO THE CUSTOMS
TERRITORY OF THE UNITED STATES; AND

(B) THE SUM OF (I) THE COST OR VALUE OF THE
MATERIALS PRODUCED IN A BENEFICIARY COUNTRY
OR TWO OR MORE BENEFICIARY COUNTRIES, PLUS
(II) THE DIRECT COSTS OF PROCESSING
OPERATIONS PERFORMED IN A BENEFICIARY COUNTRY
OR COUNTRIES IS NOT LESS THAN 35 PER CENTUM
OF THE APPRAISED VALUE OF SUCH ARTICLE AT THE
TIME IT IS ENTERED. FOR PURPOSES OF
DETERMINING THE PERCENTAGE REFERRED TO IN
(II) ABOVE, THE TERM "BENEFICIARY COUNTRY"
INCLUDES THE COMMONWEALTH OF PUERTO RICO AND
THE UNITED STATES VIRGIN ISLANDS. IF THE
COST OR VALUE OF MATERIALS PRODUCED IN THE
CUSTOMS TERRITORY OF THE UNITED STATES (OTHER
THAN THE COMMONWEALTH OF PUERTO RICO) IS
INCLUDED WITH RESPECT TO AN ARTICLE TO WHICH
THIS NOTE APPLIES, AN AMOUNT NOT TO EXCEED
15 PER CENTUM OF THE APPRAISED VALUE OF THE
ARTICLE AT THE TIME IT IS ENTERED THAT IS
ATTRIBUTED TO SUCH UNITED STATES COST OR
VALUE MAY BE APPLIED TOWARD DETERMINING THE
PERCENTAGE REFERRED TO IN (II) ABOVE.

(II) PURSUANT TO SUBSECTION 213(A)(2) OF THE CBERA, THE
SECRETARY OF THE TREASURY SHALL PRESCRIBE SUCH
REGULATION AS MAY BE NECESSARY TO CARRY OUT THIS
NOTE INCLUDING, BUT NOT LIMITED TO, REGULATIONS
PROVIDING THAT, IN ORDER TO BE ELIGIBLE FOR DUTY-
FREE TREATMENT UNDER CBERA, AN ARTICLE MUST BE
WHOLLY THE GROWTH, PRODUCT, OR MANUFACTURE OF A
BENEFICIARY COUNTRY, OR MUST BE A NEW OR DIFFERENT
ARTICLE OF COMMERCE WHICH HAS BEEN GROWN,
PRODUCED, OR MANUFACTURED IN THE BENEFICIARY
COUNTRY, AND MUST BE STATED AS SUCH IN A
DECLARATION BY THE APPROPRIATE PARTY; BUT NO
ARTICLE OR MATERIAL OF A BENEFICIARY COUNTRY SHALL
BE ELIGIBLE FOR SUCH TREATMENT BY VIRTUE OF HAVING
MERELY UNDERGONE--

(A) SIMPLE COMBINING OR PACKAGING OPERATIONS, OR

(B) MERE DILUTION WITH WATER OR MERE DILUTION
WITH ANOTHER SUBSTANCE THAT DOES NOT
MATERIALLY ALTER THE CHARACTERISTICS OF THE
ARTICLE.

(III) AS USED IN SUBDIVISION (B) OF THIS NOTE, THE
PHRASE "DIRECT COSTS OF PROCESSING
OPERATIONS" INCLUDES, BUT IS NOT LIMITED TO--

(A) ALL ACTUAL LABOR COSTS INVOLVED IN THE
GROWTH, PRODUCTION, MANUFACTURE, OR ASSEMBLY
OF THE SPECIFIC MERCHANDISE, INCLUDING FRINGE
BENEFITS, ON-THE-JOB TRAINING AND THE COST OF
ENGINEERING, SUPERVISORY, QUALITY CONTROL,
AND SIMILAR PERSONNEL; AND

(B) DIES, MOLDS, TOOLING, AND DEPRECIATION ON
MACHINERY AND EQUIPMENT WHICH ARE ALLOCABLE
TO THE SPECIFIC MERCHANDISE.