[Federal Register Volume 78, Number 48 (Tuesday, March 12, 2013)]
[Notices]
[Pages 15802-15803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05657]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


United States-Israel Free Trade Area Implementation Act; Re-
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 (IFTA Act), articles of qualifying industrial zones (QIZs) 
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 modifying the designation of 
the previously-designated Al Minya, Alexandria, Beni Suief, Central 
Delta, Greater Cairo, and Suez Canal zones in Egypt under the IFTA Act 
to provide that all present and future facilities in these zones are 
potentially able to export goods duty-free to the United States. This 
modification would also clarify and, in some cases, adjust the 
geographic boundaries of the QIZs.

FOR FURTHER INFORMATION CONTACT: Sonia Franceski, 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 articles 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 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 
six qualifying industrial zones in Egypt 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), June 15, 2001 (66 FR 32660) January 
28, 2004 (69 FR 4199), December 29, 2004 (69 FR 78094), November 16, 
2005 (70 FR 69622) and January 28, 2009 (74 FR 4482). In each of those 
designations, the USTR designated as qualifying industrial zones the 
areas occupied by

[[Page 15803]]

currently producing factories, as specified on maps and materials 
submitted by Egypt and Israel.
    The governments of Israel and Egypt submitted a request for 
designation of additional factories in two zones, the Beni Suief and Al 
Minya zones, on December 5, 2012. Following this request, during 
consultations in Washington on January 7, 2013, USTR discussed with 
representatives of Egypt and Israel a proposal to modify the 
designation of the existing QIZs to provide that all present and future 
facilities in these zones are potentially able to export goods duty-
free to the United States. This modification would also clarify and, in 
some cases, adjust the geographic boundaries of each of the six 
existing zones. The geographic boundaries of each the six zones being 
designated are specified on maps and materials on file with the Office 
of the U.S. Trade Representative. Israel and Egypt have each confirmed 
that merchandise may enter, without payment of duty or excise taxes, 
areas under their respective customs control that comprise the Greater 
Cairo zone, the Alexandria zone, the Suez Canal zone, the Central Delta 
zone, the Beni Suief zone and the Al Minya zone, as described in this 
notice. Further, the operation and administration of these zones are 
provided for in the previously agreed ``Protocol between the Government 
of the State of Israel and the Government of the Arab Republic of Egypt 
On Qualifying Industrial Zones.'' Accordingly, each of the six zones 
meet the criteria under sections 9(e)(1) and (2) of the IFTA Act.
    Therefore, pursuant to the authority delegated to me by 
Presidential Proclamation 6955, I hereby re-designate the areas that 
comprise the Al Minya zone, the Alexandria zone, the Beni Suief zone, 
the Central Delta zone, the Greater Cairo zone, and the Suez Canal 
zone, as specified on maps and materials on file at the office of the 
United States Trade Representative, as qualifying industrial zones 
under section 9 of the IFTA Act, effective upon the date of publication 
of this notice, applicable to articles shipped from these qualifying 
industrial zones after such date. This re-designation supersedes any 
previous designation of these zones.

Ron Kirk,
Ambassador, United States Trade Representative.
[FR Doc. 2013-05657 Filed 3-11-13; 8:45 am]
BILLING CODE 3190-W13-P