[Federal Register Volume 66, Number 116 (Friday, June 15, 2001)]
[Notices]
[Pages 32660-32661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15177]


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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 Zarqa Industrial Zone as a qualifying 
industrial zone (QIZ) under the IFTA Act and expanding the already-
designated QIZ area of the Ad-Dulayl Industrial Park.

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), Presidential 
Proclamation 6955 of November 13, 1996 (61 FR 58761) proclaimed certain 
tariff treatment for goods of the West Bank, the Gaza Strip, and 
Qualifying Industrial Zones. In particular, the Presidential 
Proclamation modified 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, the 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 excise taxes; and (3) has been specified by the President as 
a qualifying industrial zone.'' Presidential Proclamation 6955 
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 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), October 24, 2000 (65 FR 64472), and December 12, 2000 
(65 FR 77688).
    The Government of Israel and the Government of the Hashemite 
Kingdom of Jordan agreed in a protocol dated March 1, 2001 to the 
designation of Hillwood-Hashemite University LLC, registered under the 
name of Global Investments in Industrial Zones & Technology Parks 
Company (``Zarqa Industrial Zone''), as a qualifying industrial zone. 
The Government of Israel and the Government of the Hashemite Kingdom of 
Jordan also agreed in a protocol dated March 1, 2001 to the expansion 
of the already-designated QIZ area of the Ad-Dulayl Industrial Park. 
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 
Zarqa Industrial Zone and Ad-Dulayl Industrial Park qualifying 
industrial zones. Accordingly, the Zarqa Industrial Zone and Ad-Dulayl 
Industrial Park meet the criteria under paragraphs 9(e)(1) and (2) of 
the IFTA Act.
    Therefore, pursuant to the authority delegated to me by 
Presidential Proclamation 6955, I hereby designate the Zarqa Industrial 
Zone and the expanded Ad-Dulayl Industrial Park, as

[[Page 32661]]

established by the March 1, 2001 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.

Robert B. Zoellick,
United States Trade Representative.
[FR Doc. 01-15177 Filed 6-14-01; 8:45 am]
BILLING CODE 3190-01-M