| Title: | WEST BANK/GAZA STRIP |
|---|---|
| Date: | 1996-12-03 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : JOHN ZZ-PIERCE
SUBJECT : WEST BANK/GAZA STRIP
DATE : 12/03/96
7337073
DECEMBER 2, 1996
FO:TA JAP
CATEGORY: IFTA
TO : PORT AND CMC DIRECTORS, IMPORT SPECIALISTS, ENTRY
SPECIALISTS, INSPECTORS, AND OTHER INTERESTED PARTIES
SUCH AS BROKERS AND IMPORTERS
FROM : DIRECTOR, TRADE AGREEMENTS
SUBJECT : DUTY-FREE TREATMENT TO PRODUCTS OF THE WEST BANK, THE
GAZA STRIP OR A QUALIFYING INDUSTRIAL ZONE
ADMINISTRATIVE MESSAGE 7327071, POSTED NOVEMBER 22, 1996, ADVISED
FIELD PERSONNEL THAT ON NOVEMBER 13, 1996, PRESIDENT CLINTON
_______
SIGNED PRESIDENTIAL PROCLAMATION 6955 PUBLISHED IN FEDERAL
________
REGISTER, VOL. 61, NO. 223 DATED MONDAY, NOVEMBER 18, 1996. THIS
PROCLAMATION MODIFIED GENERAL NOTES 3 AND 8 OF THE HARMONIZED
TARIFF SCHEDULE (HTS), TO PROVIDE DUTY-FREE TREATMENT TO PRODUCTS
_________________
IMPORTED DIRECTLY FROM THE WEST BANK, THE GAZA STRIP, A
QUALIFYING INDUSTRIAL ZONE, OR ISRAEL. THIS DUTY-FREE TREATMENT
BECAME EFFECTIVE ON THURSDAY, NOVEMBER 21, 1996.
THE FIELD WAS FURTHER ADVISED THAT ADDITIONAL INSTRUCTIONS WERE
FORTHCOMING REGARDING THIS CHANGE. BELOW IS AN ELECTRONIC
VERSION OF THE ANNEX TO PRESIDENTIAL PROCLAMATION 6955. THE
ANNEX PROVIDES ADDITIONAL INSTRUCTIONS AND THE CHANGES MADE TO
GENERAL NOTES 3 AND 8 OF THE HARMONIZED TARIFF SCHEDULE AS THEY
WILL APPEAR IN THE 1997 EDITION. PLEASE REFERENCE BOTH THE
FOLLOWING AND THE PRESIDENTIAL PROCLAMATION AS IT APPEARS IN THE
________________
FEDERAL REGISTER.
___________________________________________________________________
NOTE: TO DATE NO NOTICE HAS BEEN PUBLISHED IN THE FEDERAL REGISTER
_______________________________________________________
BY THE OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
____________________________________________
DESIGNATING ANY QUALIFYING INDUSTRIAL ZONES.
ANNEX
MODIFICATIONS TO GENERAL NOTES 3 AND 8 TO
THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
___________________________________________________________
EFFECTIVE WITH RESPECT TO GOODS ENTERED, OR WITHDRAWN FROM
_______________________________________________________________
WAREHOUSE FOR CONSUMPTION, ON AND AFTER THE THIRD DAY AFTER THE
_________________________________________________________________
DATE OF PUBLICATION OF THIS PROCLAMATION IN THE FEDERAL REGISTER:
1. GENERAL NOTE 3(A)(I) IS MODIFIED BY DELETING "SUBPARAGRAPH
(IV)" AND BY INSERTING IN LIEU THEREOF "SUBPARAGRAPHS (IV) AND
(V)".
2. THE FOLLOWING NEW PROVISIONS ARE INSERTED IN NUMERICAL
SEQUENCE IN GENERAL NOTE 3(A) TO THE HARMONIZED TARIFF SCHEDULE
OF THE UNITED STATES:
______________________________________________
"(V) PRODUCTS OF THE WEST BANK, THE GAZA STRIP OR A
___________________________
QUALIFYING INDUSTRIAL ZONE.
(A) SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH,
ARTICLES WHICH ARE IMPORTED DIRECTLY FROM THE
WEST BANK, THE GAZA STRIP, A QUALIFYING
INDUSTRIAL ZONE AS DEFINED IN SUBDIVISION (G) OF
THIS SUBPARAGRAPH OR ISRAEL AND ARE--
(1) WHOLLY THE GROWTH, PRODUCT OR MANUFACTURE OF
THE WEST BANK, THE GAZA STRIP OR A
QUALIFYING INDUSTRIAL ZONE; OR
(2) NEW OR DIFFERENT ARTICLES OF COMMERCE THAT
HAVE BEEN GROWN, PRODUCED OR
MANUFACTURED IN THE WEST BANK, THE GAZA
STRIP OR A QUALIFYING INDUSTRIAL ZONE, AND
THE SUM OF--
(I) THE COST OR VALUE OF THE MATERIALS
PRODUCED IN THE WEST BANK, THE GAZA
STRIP, A QUALIFYING INDUSTRIAL ZONE
OR ISRAEL, PLUS
(II) THE DIRECT COSTS OF PROCESSING
OPERATIONS (NOT INCLUDING SIMPLE
COMBINING OR PACKAGING OPERATIONS,
AND NOT INCLUDING MERE DILUTION WITH
WATER OR WITH ANOTHER SUBSTANCE THAT
DOES NOT MATERIALLY ALTER THE
CHARACTERISTICS OF SUCH ARTICLES)
PERFORMED IN THE WEST BANK, THE GAZA
STRIP, A QUALIFYING INDUSTRIAL
ZONE OR ISRAEL,
IS NOT LESS THAN 35 PERCENT OF THE APPRAISED
VALUE OF SUCH ARTICLES;
SHALL BE ELIGIBLE FOR DUTY-FREE ENTRY INTO THE
CUSTOMS TERRITORY OF THE UNITED STATES.
FOR PURPOSES OF SUBDIVISION (A)(2), MATERIALS
WHICH ARE USED IN THE PRODUCTION OF ARTICLES IN
THE WEST BANK, THE GAZA STRIP OR A QUALIFYING
INDUSTRIAL ZONE, AND WHICH ARE THE PRODUCT OF THE
UNITED STATES, MAY BE COUNTED IN AN AMOUNT UP TO
15 PERCENT OF THE APPRAISED VALUE OF SUCH ARTICLES.
___________________
(B) ARTICLES ARE "IMPORTED DIRECTLY" FOR THE PURPOSES
OF THIS PARAGRAPH IF--
(1) THEY ARE SHIPPED DIRECTLY FROM THE WEST BANK,
THE GAZA STRIP, A QUALIFYING INDUSTRIAL
ZONE OR ISRAEL INTO THE UNITED STATES
WITHOUT PASSING THROUGH THE TERRITORY OF
ANY INTERMEDIATE COUNTRY; OR
(2) THEY ARE SHIPPED THROUGH THE TERRITORY OF AN
INTERMEDIATE COUNTRY, AND THE ARTICLES IN
THE SHIPMENT DO NOT ENTER INTO THE COMMERCE
OF ANY INTERMEDIATE COUNTRY AND THE INVOICES,
BILLS OF LADING AND OTHER SHIPPING DOCUMENTS
SPECIFY THE UNITED STATES AS THE FINAL
DESTINATION; OR
(3) THEY ARE SHIPPED THROUGH AN INTERMEDIATE
COUNTRY, AND THE INVOICES AND OTHER
DOCUMENTS DO NOT SPECIFY THE UNITED
STATES AS THE FINAL DESTINATION,
AND THE ARTICLES--
(I) REMAIN UNDER THE CONTROL OF THE
CUSTOMS AUTHORITY IN AN
INTERMEDIATE COUNTRY;
(II) DO NOT ENTER INTO THE COMMERCE OF AN
INTERMEDIATE COUNTRY EXCEPT FOR THE
PURPOSE OF A SALE OTHER THAN AT
RETAIL, BUT ONLY IF THE ARTICLES ARE
IMPORTED AS A RESULT OF THE ORIGINAL
COMMERCIAL TRANSACTIONS BETWEEN THE
IMPORTER AND THE PRODUCER OR THE
PRODUCER'S SALES AGENT; AND
(III) HAVE NOT BEEN SUBJECTED TO OPERATIONS
OTHER THAN LOADING, UNLOADING OR
OTHER ACTIVITIES NECESSARY TO
PRESERVE THE ARTICLES IN GOOD CONDITION.
_______________________________________
(C) THE TERM "NEW OR DIFFERENT ARTICLES OF COMMERCE"
MEANS THAT ARTICLES MUST HAVE BEEN
SUBSTANTIALLY TRANSFORMED IN THE WEST BANK, THE
GAZA STRIP OR A QUALIFYING INDUSTRIAL ZONE INTO
ARTICLES WITH A NEW NAME, CHARACTER OR USE.
(D) (1) FOR THE PURPOSES OF SUBDIVISION (A)(2)(I),
THE COST OR VALUE OR MATERIALS PRODUCED
IN THE WEST BANK, THE GAZA STRIP OR A
QUALIFYING INDUSTRIAL ZONE INCLUDES--
(I) THE MANUFACTURER'S ACTUAL COST FOR
THE MATERIALS;
(II) WHEN NOT INCLUDED IN THE
MANUFACTURER'S ACTUAL COST FOR
THE MATERIALS, THE FREIGHT, INSURANCE,
PACKING AND SIT OTHER COSTS INCURRED IN
TRANSPORTING THE MATERIALS TO THE
MANUFACTURER'S PLANT;
(III) THE ACTUAL COST OF WASTE OR SPOILAGE,
LESS THE VALUE OF RECOVERABLE
SCRAP; AND
(IV) TAXES OR DUTIES IMPOSED ON THE
MATERIALS BY THE WEST BANK, THE
GAZA STRIP OR A QUALIFYING
INDUSTRIAL ZONE, IF SUCH TAXES ARE
NOT REMITTED ONEXPORTATION.
(2) IF A MATERIAL IS PROVIDED TO THE MANUFACTURER
WITHOUT CHARGE, OR AT LESS THAN FAIR
MARKET VALUE, ITS COST OR VALUE SHALL BE
DETERMINED BY COMPUTING THE SUM OF--
(I) SIT EXPENSES INCURRED IN THE GROWTH,
PRODUCTION OR MANUFACTURER OF THE
MATERIAL, INCLUDING GENERAL EXPENSES;
(II) AN AMOUNT FOR PROFIT; AND
(III) FREIGHT, INSURANCE, PACKING AND SIT
OTHER COSTS INCURRED IN
TRANSPORTING THE MATERIAL TO THE
MANUFACTURER'S PLANT.
(3) IF THE INFORMATION NECESSARY TO COMPUTE THE
COST OR VALUE OF A MATERIAL IS NOT
AVAILABLE, THE CUSTOMS SERVICE MAY
ASCERTAIN OR ESTIMATE THE VALUE THEREOF
USING ALL REASONABLE METHODS.
_________
(E) (1) FOR PURPOSES OF THIS PARAGRAPH, THE "DIRECT
COSTS OF PROCESSING OPERATIONS
PERFORMED IN THE WEST BANK, THE GAZA
STRIP OR A QUALIFYING INDUSTRIAL ZONE"
WITH RESPECT TO AN ARTICLE ARE THOSE
COSTS EITHER DIRECTLY INCURRED IN,
OR WHICH CAN BE REASONABLY ALLOCATED
TO, THE GROWTH,PRODUCTION, MANUFACTURE OR
ASSEMBLY OF THAT ARTICLE. SUCH COSTS INCLUDE,
BUT ARE NOT LIMITED TO, THE FOLLOWING TO
THE EXTENT THAT THEY ARE INCLUDIBLE IN THE
APPRAISED VALUE OF ARTICLES IMPORTED INTO
THE UNITED STATES:
(I) ALL ACTUAL LABOR COSTS INVOLVED IN THE
GROWTH, PRODUCTION, MANUFACTURE
OR ASSEMBLY OF THE ARTICLE, INCLUDING
FRINGE BENEFITS, ON-THE-JOB TRAINING AND
COSTS OF ENGINEERING, SUPERVISORY, QUALITY
CONTROL AND SIMILAR PERSONNEL;
(II) DIES, MOLDS, TOOLING AND DEPRECIATION
ON MACHINERY AND EQUIPMENT WHICH ARE
ALLOCABLE TO SUCH ARTICLES;
(III) RESEARCH, DEVELOPMENT, DESIGN,
ENGINEERING AND BLUEPRINT COSTS
INSOFAR AS THEY ARE ALLOCABLE TO
SUCH ARTICLES; AND
(IV) COSTS OF INSPECTING AND TESTING SUCH
ARTICLES.
(2) THOSE ITEMS THAT ARE NOT INCLUDED AS DIRECT
COSTS OF PROCESSING OPERATIONS WITH
RESPECT TO AN ARTICLE ARE THOSE WHICH ARE
NOT DIRECTLY ATTRIBUTABLE TO THE ARTICLE OR ARE
NOT COSTS OF MANUFACTURING THE ARTICLE. SUCH ITEMS
INCLUDE, BUT ARE NOT LIMITED TO--
(I) PROFIT; AND
(II) GENERAL EXPENSES OF DOING BUSINESS
WHICH ARE EITHER NOT ALLOCABLE TO THE
ARTICLE OR ARE NOT RELATED TO THE
GROWTH, PRODUCTION, MANUFACTURE OR
ASSEMBLY OF THE ARTICLE, SUCH AS
ADMINISTRATIVE SALARIES, CASUALTY
AND LIABILITY INSURANCE, ADVERTISING AND
SALESMEN'S SALARIES, COMMISSIONS OR EXPENSES.
(F) WHENEVER ARTICLE ARE ENTERED WITH A CLAIM FOR THE
DUTY EXEMPTION PROVIDED IN THIS PARAGRAPH--
(1) THE IMPORTER SHALL BE DEEMED TO CERTIFY THAT
SUCH ARTICLES MEET ALL OF THE
CONDITIONS FOR DUTY EXEMPTION; AND
(2) WHEN REQUESTED BY THE CUSTOMS SERVICE, THE
IMPORTER, MANUFACTURER OR EXPORTER
SUBMITS A DECLARATION SETTING FORTH ALL
PERTINENT INFORMATION WITH RESPECT TO SUCH
ARTICLES, INCLUDING THE FOLLOWING:
(I) A DESCRIPTION OF SUCH ARTICLES,
QUANTITIES, NUMBERS AND MARKS OF
PACKAGES, INVOICE NUMBERS AND BILLS OF
LADING;
(II) A DESCRIPTION OF THE OPERATIONS
PERFORMED IN THE PRODUCTION OF
SUCH ARTICLES IN THE WEST BANK, THE
GAZA STRIP, A QUALIFYING INDUSTRIAL
ZONE OR ISRAEL AND AN IDENTIFICATION
OF THE DIRECT COSTS OF PROCESSING OPERATIONS;
(III) A DESCRIPTION OF THE MATERIALS USED IN
THE PRODUCTION OF SUCH ARTICLES WHICH
ARE WHOLLY THE GROWTH, PRODUCT OR MANUFACTURE
OF THE WEST BANK, THE GAZA STRIP,
A QUALIFYING INDUSTRIAL ZONE, ISRAEL
OR THE UNITED STATES, AND A
STATEMENT AS TO THE COST OR VALUE OF
SUCH MATERIALS;
(IV) A DESCRIPTION OF THE OPERATIONS
PERFORMED ON, AND A STATEMENT AS TO
THE ORIGIN AND COST OR VALUE OF, ANY
FOREIGN MATERIALS USED IN SUCH ARTICLES
WHICH ARECLAIMED TO HAVE BEEN SUFFICIENTLY
PROCESSED IN THE WEST BANK, THE GAZA STRIP,
A QUALIFYING INDUSTRIAL ZONE OR ISRAEL SO
AS TO BE MATERIALS PRODUCED IN THE
WEST BANK, THE GAZA STRIP, A QUALIFYING
INDUSTRIAL ZONE OR ISRAEL; AND
(V) DESCRIPTION OF THE ORIGIN AND COST OR
VALUE OF ANY FOREIGN MATERIALS USED
IN THE ARTICLE WHICH HAVE NOT BEEN
SUBSTANTIALLY TRANSFORMED IN THE WEST BANK,
THE GAZA STRIP OR A QUALIFYING
INDUSTRIAL ZONE.
(G) FOR THE PURPOSES OF THIS PARAGRAPH, A
____________________________
"QUALIFYING INDUSTRIAL ZONE" MEANS ANY AREA
THAT--
_____________________________________________
(1) ENCOMPASSES PORTIONS OF THE TERRITORY OF
______________________________________
ISRAEL AND JORDAN OR ISRAEL AND EGYPT;
________________________________________________
(2) HAS BEEN DESIGNATED BY LOCAL AUTHORITIES AS
______________________________________
AN ENCLAVE WHERE MERCHANDISE MAY ENTER
________________________________________
WITHOUT PAYMENT OF DUTY OR EXCISE TAXES; AND
_____________________________________________
(3) HAS BEEN DESIGNATED BY THE UNITED STATES
_________________________________
TRADE REPRESENTATIVE IN A NOTICE
_____________________________________
PUBLISHED IN THE FEDERAL REGISTER AS
_______________________________
A QUALIFYING INDUSTRIAL ZONE."
3. GENERAL NOTE 8 IS MODIFIED AS FOLLOWS:
(A) BY INSERTING IN SUBDIVISION (B)(II) OF SUCH NOTE THE
EXPRESSION "(OR DIRECTLY FROM THE WEST BANK, THE GAZA DEFINED
IN GENERAL NOTE 3(A)(V)(G) TO "ISRAEL";
(B) BY INSERTING IN SUBDIVISION AND INCLUDING THE COST OR
VALUE OF GAZA STRIP OR A QUALIFYING INDUSTRIAL STRIP OR A
QUALIFYING INDUSTRIAL ZONE AS THE TARIFF SCHEDULE)" IMMEDIATELY
AFTER (B)(III)(A) OF SUCH NOTE THE EXPRESSION MATERIALS PRODUCED
IN THE WEST BANK, THE ZONE PURSUANT TO GENERAL NOTE 3(A)(V) TO
THE TARIFF SCHEDULE," IMMEDIATELY AFTER "ISRAEL"; AND
(C) BY INSERTING IN SUBDIVISION (B)(III)(B) OF SUCH NOTE
THE EXPRESSION AND INCLUDING THE DIRECT COSTS OF PROCESSING
OPERATIONS PERFORMED IN THE WEST BANK, THE GAZA STRIP OR A
QUALIFYING INDUSTRIAL ZONE PURSUANT TO GENERAL NOTE 3(A)(V) TO
THE TARIFF SCHEDULE," IMMEDIATELY AFTER "ISRAEL,".
QUESTIONS REGARDING THIS NOTICE ARE TO BE DIRECTED TO JOHN PIERCE
TRADE AGREEMENTS, AT (202) 927-1249.
JOYCE METZGER
\S\