[Federal Register Volume 65, Number 239 (Tuesday, December 12, 2000)]
[Notices]
[Pages 77688-77689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31627]


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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 United States-Israel Free Trade Area Implementation 
Act (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 Mushatta International Complex, 
the El Zay Ready Wear Manufacturing Company Duty Free Area and the Al 
Qastal Industrial Zone as Qualifying Industrial Zones under the IFTA 
Act.

FOR FURTHER INFORMATION CONTACT: Edmund Saums, Director for Middle East 
Affairs, (202) 395-4987, Office of the United States Trade 
Representative, 600 17th Street, 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 (IFTA Act), 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 performed 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.
    The United States Trade Representative has previously designated 
Qualifying Industrial Zones

[[Page 77689]]

under Section 9 of the IFTA Act on March 13, 1998 (63 FR 12572), March 
19, 1999 (64 FR 13623), October 15, 1999 (64 FR 56015), and October 24, 
2000 (65 FR 64472).
    The Government of Israel and the Government of the Hashemite 
Kingdom of Jordan have agreed to the designation of the Mushatta 
International Complex (protocol dated November 22, 2000), the El Zay 
Ready Wear Manufacturing Company Duty Free Area (protocol dated January 
12, 2000) and the Al Qastal Industrial Zone (protocol dated November 
22, 2000) as Qualifying Industrial Zones. The Government of Israel and 
the Government of Jordan further agreed that merchandise may enter, 
without payment of duty or excise taxes, areas under their respective 
customs control in association with the Mushatta, El Zay and Al Qastal 
Qualifying Industrial Zones. Accordingly, the Mushatta International 
Complex, the El Zay Ready Wear Manufacturing Company Duty Free Area and 
the Al Qastal Industrial Zone meet the criteria under paragraphs 
9(e)(1) and (2) of the IFTA Act.
    Therefore, pursuant to the authority delegated to me by the 
President in Proclamation 6955, I hereby designate the Mushatta 
International Complex, the El Zay Ready Wear Manufacturing Company Duty 
Free Area and the Al Qastal Industrial Zone, as established by the 
January 12, 2000 and November 22, 2000 Amending Protocols to the 
Agreement Between the Government of the Hashemite Kingdom of Jordan and 
the Government of the State of Israel on Irbid Qualifying Industrial 
Zone, 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: December 4, 2000.
Charlene Barshefsky,
United States Trade Representative.
[FR Doc. 00-31627 Filed 12-11-00; 8:45 am]
BILLING CODE 3901-01-P