Page:United States Statutes at Large Volume 106 Part 6.djvu/796

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106 STAT. 5354 PROCLAMATION 6455—JULY 2, 1992 ANNEX DESIGNATION OF BENEFICIARY COUNTRY AND IMPLEMENTATION OF DUTY-FME ENTRY FOR CERTAIN GOODS Section (a). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after IS days after the date of publication of this proclamation in the Federal Register. (1) General note 3(c)(i)(a) to the Harmonized Tariff Schedule of the United States (HTS) is. modified by ins^ting at the end of such subdivision the following: "Andean Trade Preference Act JorJ*" (2) The following new subdivision (ix) is added to general note 3(c) to the HTS: "(ix) Products of Countries Designated as Beneficiary Countries for Purposes of the Andean Trade Preference Act (ATPA). (A) The following countries or successor political entities are designated beneficiary countries for purposes of the ATPA, pursuant to section 203 of that Act (19 U.S.Q 3203): Colombia - (B)(1) Unless otherwise excluded from eligibility by the provisions of subdivisions (c)(b()(D) or (c)(ix)(E) of this note, any article which is the growUi, product, or manufacture of a beneficiary country shall be eligible for duty-free treatment if that article is provided for in a provision for which a rate of duty of "Free" appears in the "Special" subcoliunn followed by the symbol "J" or "J* " in parentheses, and if— (I) that article is imported directly from a beneficiary country into the customs territory of the United States; and (D) the sum of (A) the cost or value of the materials produced in a beneficiary country or two or more beneficiary countries (under the ATPA or the CBERA), plus (B) the .. direct cost of processing operations performed in a beneficiary country or countries (under the ATPA or the CBERA) is not less than 35 percent of the appraised value of such article at the time it is entered. For purposes of determining the percentage referred to in (n)(B) 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 subdivision (c)(ix) applies, an amount not to exceed 15 percent 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)(B) above. (2) Pursuant to subsection 204(a)(2) of the ATPA, the Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out subdivision (c)(ix) of this note including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under the ATPA, 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; but no article or material of a beneficiary country shall be eligible for such treatment by virtue of having merely undergone— (I) simple combining or packaging operations, OF (II) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. (3) As used in subdivisiim (c)(ix)(B) of this note, the phrase "direct costs of processing operations" includes, but is not limited to^ (I) 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 (II) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise. Such phrase does not include costs which are not directly attributable to the merchandise concerned or are not costs of manufacturing the product, such as (I) profit, and (n) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advratising. interest, and salesmen's salaries, commissions or expenses. (C) Articles provided for in a provision for which a rate of duty of "Free" appears in the "Special" subcolumn followed by the symbol ")" or "J*" in parentheses are eligible articles for purposes of the ATPA pursuant to section 204 of that Act Whenever an eligible