[Federal Register Volume 65, Number 209 (Friday, October 27, 2000)]
[Notices]
[Page 64472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27702]


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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.

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SUMMARY: Under the Unites--Israel Free Trade Area Implementation Act 
(``the ``IFTA 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 Industry and 
Information Technology Park Development Co. (Jordan Cyber City Co.), 
and the Aqaba Industrial Estate as qualifying industrial zones under 
the IFTA Act.

FOR FURTHER INFORMATION CONTACT: Adam Shub, Director for the Middle 
East and Mediterranean, (202) 395-9569, Office of USTR, 600 17th 
Street, NW, Washington, D.C. 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 IFTA 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 
performing in Israel under section 1(c)(ii) of Annex 3 of the 
Agreement.
    Section 9(e) of the IFTA 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 exercise 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.
    On March 13, 1998 (63 FR 12572), I designated the Irbid Qualifying 
Industrial Zone as a qualifying industrial zone under section 9 of the 
IFTA Act. On March 19, 1999 (64 FR 113623), I designated the Gateway 
Projects Industrial Zone and the expanded Irbid Qualifying Industrial 
Zone as qualifying industrial zone under section 9 of the IFTA Act. On 
October 15, 1999 (64 FR 56015) I designated Al-Kerak Industrial Estate, 
the Ad-Dulayl Industrial Park, and the Al-Tajamouat Industrial City as 
qualifying industrial zones under section 9 of the IFTA Act.
    In a agreement dated August 6, 2000, the Government of Israel and 
the Government of the Hashemite Kingdom of Jordan agreed to the 
creation of two additional Qualifying Industrial Zones: Industry and 
Information Technology Park Development Co. (Jordan Cyber City Co.), 
and the Aqaba Industrial Estate. These zones encompass areas under the 
customs control of the respective Governments. The Government of Israel 
and the Government of Jordan further agreed that merchandise may enter 
these areas without payment of duty or excise taxes. Accordingly, the 
Industry and Information Technology Park Development Co. (Jordan Cyber 
City Co.), and the Aqaba Industrial estate meet the criteria under 
paragraphs 9(e)(1) and (2) of the IFTA Act.
    Therefore, pursuant to the authority delegated to may by the 
President in Proclamation 6955, I hereby designate the Industry and 
Information Technology Park Development Co. (Jordan Cyber City Co.), 
and the Aqaba Industrial Estate as qualifying industrial zones under 
section 9 of the IFTA Act, effective upon the date of publication of 
this notice, applicable to goods shipped from these Qualifying 
Industrial Zones after such date.

    Dated: October 24, 2000.
Charlene Barshefsky,
United States Trade Representative.
[FR Doc. 00-27702 Filed 10-26-00; 8:45 am]
BILLING CODE 3901-01-M