[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4026 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4026

To amend the Harmonized Tariff Schedule of the United States to provide 
    duty-free treatment for certain foodstuffs originating in NAFTA 
                               countries.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2000

   Mr. Shaw introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Harmonized Tariff Schedule of the United States to provide 
    duty-free treatment for certain foodstuffs originating in NAFTA 
                               countries.

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

SECTION 1. DUTY-FREE TREATMENT OF CERTAIN FOODSTUFFS ORIGINATING IN 
              NAFTA COUNTRIES.

    (a) Amendments to U.S. Notes.--Subchapter II of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by adding 
after U.S. note 6 the following new note:
``7. Food preparations that are the product of Canada or Mexico 
        consisting of, or processed using, a material exported from the 
        United States.--The following provisions apply only to 
        subheading 9802.00.95:
        ``(a) Entry of any product described by subheading 9802.00.95:
                ``(i) shall not be subject to duty under the provisions 
                        of subchapter IV of chapter 99; and
                ``(ii) if a tariff-rate quota provision would have 
                        applied to such product but for subheading 
                        9802.00.95, the quantity of the product entered 
                        under that subheading shall not be counted 
                        against the quantity specified as the in-quota 
                        quantity for any such product.
        ``(b) The term `product of Canada or Mexico' means a good:
                ``(i) that is determined to be a product of Canada or 
                        of Mexico under rules of origin promulgated by 
                        the Secretary of the Treasury pursuant to Annex 
                        311 of the North American Free Trade Agreement, 
                        as implemented under the North American Free 
                        Trade Agreement Implementation Act; or
                ``(ii) that is processed, packaged, or otherwise 
                        advanced in value or improved in condition in 
                        Canada or Mexico (or both) and that is 
                        determined to be a product of the United States 
                        under such rules of origin.
        ``(c) The term `products of the United States' means goods or 
                materials that are determined to be products of the 
                United States under rules of origin promulgated by the 
                Secretary of the Treasury pursuant to Annex 311 of the 
                North American Free Trade Agreement, as implemented 
                under the North American Free Trade Agreement 
                Implementation Act.
        ``(d) The term `manufactured or processed in Canada or Mexico 
                (or both) using a good or material that was exported 
                from the United States' includes, but is not limited 
                to:
                ``(i) processing in Canada or Mexico using a good or 
                        material that previously was imported into the 
                        United States; and
                ``(ii) processing in Canada or Mexico using a good or 
                        material that was processed in a country or 
                        countries other than Canada or Mexico after 
                        exportation from the United States, if such 
                        processing did not effect a change in the 
                        country of origin of the good as exported from 
                        the United States.''.
    (b) Duty-Free Treatment.--Subchapter II of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by inserting 
in numerical sequence the following new heading:
      

``       9802.00.95       Any good of chapter  Free (see U.S. note
                           4, 18, 19, or 21,    7 of this
                           of heading 1704,     subchapter)                                                   ''
                           or of subheading                                                                    .
                           1517.90.50,
                           1517.90.60,
                           1701.91.44,
                           1701.91.48,
                           1701.91.54,
                           1701.91.58,
                           2202.90.24, or
                           2202.90.28, that
                           is a product of
                           Canada or Mexico
                           and that was
                           manufactured or
                           processed in
                           Canada or Mexico
                           (or both) using a
                           good or material
                           exported from the
                           United States, if
                           the following
                           conditions are
                           met: (1) the good
                           as imported into
                           the United States
                           is an originating
                           good satisfying
                           the requirements
                           of General Note 12
                           of the tariff
                           schedule; (2) any
                           goods or materials
                           of heading 0401,
                           0402, 0403, 0404,
                           0405, or 0406 and
                           any goods or
                           materials
                           described in
                           additional U.S.
                           note 1 to chapter
                           4 that were used
                           in the processing
                           of the good in
                           Canada or Mexico
                           were products of
                           the United States;
                           (3) if the good as
                           imported into the
                           United States is
                           described in any
                           of headings 0401
                           through 0406, any
                           good or material
                           classified within
                           any such heading
                           that was used in
                           the processing in
                           Canada or in
                           Mexico (or both)
                           was a product of
                           the United States,
                           and such
                           processing did not
                           effect a change in
                           the tariff
                           classification of
                           such good or
                           material to
                           another such
                           heading; and (4)
                           if the good as
                           imported into the
                           United States is
                           described in
                           additional U.S.
                           note 2, 3, or 4 to
                           chapter 17 or
                           additional note 2
                           to chapter 19,
                           such good does not
                           contain more than
                           10 percent by dry
                           weight of sugar
                           derived from sugar
                           cane or sugar
                           beets grown in any
                           foreign country or
                           countries.........

    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to goods entered, or withdrawn from warehouse for 
consumption on or after the 15th day after the date of the enactment of 
this Act.
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