[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 87 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 87

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

  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 is 
        entered into a foreign trade zone for use within such zone as 
        production equipment or as parts for such equipment, shall not 
        be subject to duty until such merchandise is completely 
        assembled, installed, tested, and used in the production for 
        which it was entered. The duty imposed on such merchandise 
        shall be at the same rate as would have been imposed (but for 
        the provisions of this subsection) on such merchandise had duty 
        been imposed on such merchandise 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with respect to merchandise entered, or withdrawn from warehouse for 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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