Ill STAT. 2818 PROCLAMATION 6955—NOV. 13, 1996 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NOTES 3 AND 8 TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES Effective with respect to goods entered, or withdrawn from varehouse for consumption, on and after the third day after the date of publication of this proclamation In the Federal Register: 1.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)(1) 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) PrcKfciCts of th» U**t BiTfc. th« C«i« Strip or > omlifvina inAntrlat lotw. (A) SubJMt to th* provUtons of this poragrifiti, •rtlclts Nhich art ioporttd directly froM the Wnt Sank, th* Gaza Strip, a qualifying industrial zone as defined in subdivision (G> of this subparagraph or Israel and arc-- (1) Hhotly the growth, product or nanufacture of the Uest Bank, the Gaza Strip or a qualifying industrial zone; or (2) new or different articles of commerce that have been growi, produced or Manufactured in the Uest Banic, the Gaza Strip or a qualifying Industrial zone, and the SUB of-- (I) the cost or value of the nsterials produced In the Uest tank, the Gaza Strip, a qualifying Industrial zone or Israel, plus <II) the direct costs of processing operations (not Including sinplc coablning or packaging operations, and not including aers dilution Hith water or with another sUjstance that doe* not •aterially attar the characteristics of such articles) performed In the Uest Bank, the Gaza Strip, a qualifying industrial zone or Israel, Is not lass than 35 percent of the appraised value of such srticles; shall be eligible for duty-free entry into the custoas territory of the United States. For purposes of siliivision (A)(2), nsterials which are used inthe production of articles in the Uest Bank, the Gaza Strip or a qualifying industrial zone, snd which are the product of the United States, May be counted in an sMount I4> to IS percent of the appraised value of such articles. (B) Articles are "Imported directly" for the purposes of this paragraph If-- (1) they ar* shipped directly froM the Uest Bank, th* Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any Intenaediate country; or (2) they are shipped through th* territory of an intenaediate country, and the articles in the shipment do not enter Into the coanerce of any Internedlate country and the Invoices, bills of lading and other shipping doctannt* specify th* United States as th* final destination; or (3) they ar* shippal through an Intarnediat* country and th* invoices and other docunsnts do not specify the United States as the final destination, and the srticles-- (I) rsHein under th* control of th* custoM* authority in an Intanaedlat* country; (II) do not enter into the eoMMerc* of an intcrsisdiatc country except for the purpose of a sale other than at retail, but only if th* articlas ar* imported as a result of the original coasarclat transactions between the iaportcr and the producer or th* producer's sales agent; and (lit) have not been subjected to operations other than loading, unloading or other activities necessary to preserve the articles in good condition. (C) The tens "new or different articles of eomerce* Means that articles nust have been substantially transfonaad in the Uest Bank, th* Gaza Strip or a qualifying Industrial zone Into articles with a new naMe, character oruse. (D) (1) For the purposes of subdivision (A)(2)(I), the cost or value or Materials produced in the Uest Bank, th* Gaza Strip or a qualifying industrial zon* Includ**-- (I) th* Manufacturer's actual cost for theMaterials; (II) when not included in the Manufacturer's actual cost for the Meterials, the freight, insurance, packing and all other costs Incurred in transporting th* Materials to the Manufacturer's plant;
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