[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 231 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 231

To amend the Foreign Trade Zones Act to permit the deferral of payment 
                of duty on certain production equipment.


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                   IN THE SENATE OF THE UNITED STATES

             January 27 (legislative day, January 5), 1993

  Mr. Inouye introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Foreign Trade Zones Act to permit the deferral of payment 
                of duty on certain production equipment.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEFERRAL OF DUTY ON CERTAIN PRODUCTION EQUIPMENT.

    (a) In General.--Section 3 of the Act of June 18, 1934 (commonly 
known as the Foreign Trade Zones Act, 19 U.S.C. 81c) is amended by 
adding at the end thereof the following new subsection:
    ``(e) Production Equipment.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, if all applicable customs laws are complied with (except 
        as otherwise provided in this subsection), merchandise which 
        may be admitted into a foreign trade zone for use within such 
        zone as production equipment, or parts thereof, shall not be 
        subject to duty until such merchandise is completely assembled, 
        installed, tested, and used in the production for which it was 
        admitted. The duty chargeable shall be at the same rate as 
        would have been imposed (but for the provisions of this 
        subsection) on such production machinery and related equipment, 
        and parts thereof, (taking into account the zone status of the 
        merchandise) had duty been imposed on such production machinery 
        and related equipment, and parts thereof, at the time of entry 
        into the customs territory of the United States.
            ``(2) Foreign trade zone.--For purposes of this subsection, 
        the term `foreign trade zone' includes a subzone as defined in 
        section 146.1(b)(17) of chapter 19, Code of Federal 
        Regulations.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to articles entered, or withdrawn from warehouse for 
consumption, after the date that is 15 days after the date of the 
enactment of this Act.

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