[Federal Register Volume 63, Number 49 (Friday, March 13, 1998)]
[Notices]
[Pages 12572-12573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6413]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


United States-Israel Free Trade Area Implementation Act 
Designation of Qualifying Industrial Zone

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: Under the United States-Israel Free Trade Area Implementation 
Act (the ``FTA Act''), products of qualifying industrial zones 
encompassing portions of Israel and Jordan or Israel and Egypt are 
eligible to receive duty-free treatment. Effective upon publication of 
this notice, the United States Trade Representative, pursuant to 
authority delegated by the President, is designating the Israeli-
Jordanian Irbid Qualifying Industrial Zone as a qualifying industrial 
zone under the FTA Act.

FOR FURTHER INFORMATION CONTACT:

[[Page 12573]]

Daniel A. Clune, Director for the Middle East and Mediterranean (202) 
395-4620.

SUPPLEMENTARY INFORMATION: Pursuant to authority granted under Section 
9 of the United States-Israel Free Trade Area Implementation Act of 
1985, as amended (19 U.S.C. 2112 note), the President proclaimed 
certain tariff treatment for the West Bank, the Gaza Strip, and 
qualifying industrial zones (Proclamation 6955 of November 13, 1996 (61 
FR 58761)). In particular, the President proclaimed modifications to 
general notes 3 and 8 of the Harmonized Tariff Schedule of the United 
States: (a) To provide duty-free treatment to qualifying articles that 
are the product of the West Bank or Gaza Strip or a qualifying 
industrial zone and are entered in accordance with the provisions of 
section 9 of the FTA Act; (b) to provide that articles of Israel may be 
treated as though they were articles directly shipped from Israel for 
the purposes of the United States-Israel Free Trade Area Agreement (the 
``Agreement'') even if shipped to the United States from the West Bank, 
the Gaza Strip, or a qualifying industrial zone, if the articles 
otherwise meet the requirements of the Agreement; and (c) to provide 
that the cost or value of materials produced in the West Bank, the Gaza 
Strip, or a qualifying industrial zone may be included in the cost or 
value of materials produced in Israel under section 1(c)(i) of Annex 3 
of the Agreement, and that the direct costs of processing operations 
performed in the West Bank, the Gaza Strip, or a qualifying industrial 
zone may be included in the direct costs of processing operations 
performed in Israel under section 1(c)(ii) of Annex 3 of the Agreement.
    Section 9(e) of the FTA Act defines a ``qualifying industrial 
zone'' as an area that ``(1) Encompasses portions of the territory of 
Israel and Jordan or Israel and Egypt; (2) has been designated by local 
authorities as an enclave where merchandise may enter without payment 
of duty or excise taxes; and (3) has been specified by the President as 
a qualifying industrial zone.'' In Proclamation 6955, the President 
delegated to the United States Trade Representative the authority to 
designate qualifying industrial zones.
    In an agreement dated November 16, 1997, the Government of Israel 
and the Government of Jordan agreed to the creation of the Irbid 
Qualifying Industrial Zone, encompassing areas under the customs 
control of the respective Governments. The Government of Israel and the 
Government of Jordan further agreed that merchandise may enter the 
Irbid Qualifying Industrial Zone without payment of duty or excise 
taxes, and both Governments subsequently implemented this agreement 
pursuant to their domestic legal procedures. The Irbid Qualifying 
Industrial Zone accordingly meets the criteria under paragraphs 9(e) 
(1) and (2) of the FTA Act.
    Pursuant to the authority delegated by the President in 
Proclamation 6955, the United States Trade Representative hereby 
designates the Irbid Qualifying Industrial Zone as a qualifying 
industrial zone under section 9 of the FTA Act, effective upon the date 
of publication of this notice.

    Dated: March 6, 1998.
Charlene Barshefsky,
United States Trade Representative.
[FR Doc. 98-6413 Filed 3-12-98; 8:45 am]
BILLING CODE 3190-01-M