[Federal Register Volume 64, Number 53 (Friday, March 19, 1999)] [Notices] [Pages 13623-13624] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-6793] ======================================================================= ----------------------------------------------------------------------- OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE United States-Israel Free Trade Area Implementation Act; Designation of Qualifying Industrial Zones AGENCY: Office of the United States Trade Representative. ACTION: Notice. ----------------------------------------------------------------------- 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 Gateway Projects Industrial Zone and an expanded Israeli- Jordanian Irbid Qualifying Industrial Zone as qualifying industrial zones under the FTA Act. FOR FURTHER INFORMATION CONTACT: Madelyn Spirnak, Director for the Middle East and Mediterranean, (202) 395-3320, Office of USTR, 600 17th St., NW, Washington, DC 20508. 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 23, 1998, the Government of Israel and the Government of Jordan agreed to the creation of the Gateway Projects 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 Gateway Industrial Zone without payment of duty or excise taxes. The Gateway Projects Industrial Zone accordingly meets the criteria under paragraphs 9(e) (1) and (2) of the FTA Act. 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. In a notice published on March 13, 1998 (63 FR 12572), the United States Trade Representative designated the Irbid Qualifying Industrial Zone as a qualifying industrial zone under section 9 of the FTA Act. In an agreement dated November 23, 1998, the Government of Israel and the Government of Jordan agreed to an [[Page 13624]] expansion of the Irbid Qualifying Industrial Zone, as specified in maps accompanying that agreement. The expanded Irbid Qualifying Industrial Zone, like the original Irbid Qualifying Industrial Zone, encompasses areas under the customs control of the respective Governments. In addition, the Government of Israel and the Government of Jordan agreed that merchandise may enter the expanded Irbid Qualifying Industrial Zone without payment of duty or excise taxes. The expanded 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 Gateway Projects Industrial Zone and the expanded Irbid Qualifying Industrial Zone as qualifying industrial zones under section 9 of the FTA Act, effective upon the date of publication of this notice. Dated: March 15, 1999. Charlene Barshefsky, United States Trade Representative. [FR Doc. 99-6793 Filed 3-18-99; 8:45 am] BILLING CODE 3190-01-M