§2463. Eligible articles

(a) Lists of articles to be considered for designation

The President shall, from time to time, publish and furnish the International Trade Commission with lists of articles which may be considered for designation as eligible articles for purposes of this subchapter. Before any such list is furnished to the Commission, there shall be in effect an Executive order or Presidential proclamation under section 2462 of this title designating beneficiary developing countries. The provisions of sections 2151, 2152, 2153, and 2154 of this title shall be complied with as though action under section 2461 of this title were action under section 2111 of this title to carry out a trade agreement entered into under section 2111 of this title. After receiving the advice of the Commission with respect to the listed articles, the President shall designate those articles he considers appropriate to be eligible articles for purposes of this subchapter by Executive order or Presidential proclamation.

(b) Eligible articles qualifying for duty-free treatment

(1) The duty-free treatment provided under section 2461 of this title shall apply to any eligible article which is the growth, product, or manufacture of a beneficiary developing country if-

(A) that article is imported directly from a beneficiary developing country into the customs territory of the United States; and

(B) the sum of (i) the cost or value of the materials produced in the beneficiary developing country or any 2 or more countries which are members of the same association of countries which is treated as one country under section 2462(a)(3) of this title, plus (ii) the direct costs of processing operations performed in such beneficiary developing country or such member countries is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States.

(2) The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this subsection, including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under this subchapter, an article must be wholly the growth, product, or manufacture of a beneficiary developing country, or must be a new or different article of commerce which has been grown, produced, or manufactured in the beneficiary developing country; but no article or material of a beneficiary developing country shall be eligible for such treatment by virtue of having merely undergone-

(A) simple combining or packaging operations, or

(B) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.

(c) Articles which may not be designated as eligible articles

(1) The President may not designate any article as an eligible article under subsection (a) of this section if such article is within one of the following categories of import-sensitive articles-

(A) textile and apparel articles which are subject to textile agreements,

(B) watches, except those watches entered after June 30, 1989, that the President specifically determines, after public notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions,

(C) import-sensitive electronic articles,

(D) import-sensitive steel articles,

(E) footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel which were not eligible articles for purposes of this subchapter on April 1, 1984,

(F) import-sensitive semimanufactured and manufactured glass products, and

(G) any other articles which the President determines to be import-sensitive in the context of the Generalized System of Preferences.

(2) No article shall be an eligible article for purposes of this subchapter for any period during which such article is the subject of any action proclaimed pursuant to section 2253 of this title or section 1862 or 1981 of this title.

(d) Tariff-rate quotas

No quantity of an agricultural product subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for duty-free treatment under this subchapter.

( Pub. L. 93–618, title V, §503, Jan. 3, 1975, 88 Stat. 2069 ; Pub. L. 96–39, title XI, §1111(a)(3), July 26, 1979, 93 Stat. 315 ; Pub. L. 98–573, title V, §504, Oct. 30, 1984, 98 Stat. 3020 ; Pub. L. 99–47, §8(b)(2), June 11, 1985, 99 Stat. 85 ; Pub. L. 99–514, title XVIII, §1889(7), Oct. 22, 1986, 100 Stat. 2926 ; Pub. L. 100–418, title I, §1903, Aug. 23, 1988, 102 Stat. 1313 ; Pub. L. 101–382, title II, §226, Aug. 20, 1990, 104 Stat. 660 ; Pub. L. 103–465, title IV, §404(e)(3), Dec. 8, 1994, 108 Stat. 4961 .)

Amendments

1994-Subsec. (d). Pub. L. 103–465 added subsec. (d).

1990-Subsec. (b). Pub. L. 101–382 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "The duty-free treatment provided under section 2461 of this title with respect to any eligible article shall apply only-

"(1) to an article which is imported directly from a beneficiary developing country into the customs territory of the United States; and

"(2) If the sum of (A) the cost or value of the materials produced in the beneficiary developing country or any 2 or more countries which are members of the same association of countries which is treated as one country under section 2462(a)(3) of this title, plus (B) the direct costs of processing operations performed in such beneficiary developing country or such member countries is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States.

The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this subsection."

1988-Subsec. (c)(1)(B). Pub. L. 100–418 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "watches,".

1986-Pub. L. 99–514 made a technical correction to directory language of Pub. L. 98–573, §504(a), requiring no change in text. See 1984 Amendment note below.

1985-Subsec. (a). Pub. L. 99–47 inserted "or Presidential proclamation" after "Executive order" in two places.

1984-Subsec. (b). Pub. L. 98–573, §504(a), as amended by Pub. L. 99–514, inserted ", after consulting with the United States Trade Representative," after "Secretary of the Treasury" in last sentence.

Subsec. (c)(1)(E). Pub. L. 98–573, §504(b), substituted "footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel which were not eligible articles for purposes of this subchapter on April 1, 1984" for "footwear articles specified in items 700.05 through 700.27, 700.29 through 700.53, 700.55.23 through 700.55.75, and 700.60 through 700.80 of the Tariff Schedules of the United States".

1979-Subsec. (b). Pub. L. 96–39 restated par. (2) so as to reduce the minimum value-added requirement from 50 percent to 35 percent for associations of countries comparable to the existing minimum percentage for individual countries or single members of an association, and struck out provision following par. (2) which defined "country" as used in par. (2)(a).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–465 effective on the date of entry into force of the WTO Agreement with respect to the United States [Jan. 1, 1995], except as otherwise provided, see section 451 of Pub. L. 103–465, set out as an Effective Date note under section 3601 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–573 effective Jan. 4, 1985, see section 508 of Pub. L. 98–573, set out as a note under section 2461 of this title.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an Effective Date note under section 2581 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1801–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code.

Section Referred to in Other Sections

This section is referred to in section 3011 of this title; title 7 section 1444–2.