A of part 7 of schedule 7, and except as provided in section 423 of the Tax Reform Act of 1986, articles imported from insular possessions of the United States which are outside the customs territory of the United States are subject to the rates of duty set forth in column numbered 1 of the schedules, except that all such articles the growth or product of any such possession, or manufactured or produced in any such possession from materials the growth, product, or manufacture of any such possession or of the customs territory of the United States, or of both, which do not contain foreign materials to the value of more than 70 percent of their total value (or more than 50 percent of their total value with respect to articles described in section 213(b) of the Caribbean Basin Economic Recovery Act [19 U.S.C. 2703(b)]), coming to the customs territory of the United States directly from any such possession, and all articles previously imported into the customs territory of the United States with payment of all applicable duties and taxes imposed upon or by reason of importation which were shipped from the United States, without remission, refund, or drawback of such duties or taxes, directly to the possession from which they are being returned by direct shipment, are exempt from duty.

(ii) In determining whether an article produced or manufactured in any such insular possession contains foreign materials to the value of more than 70 percent, no material shall be considered foreign which either

or

(A) at the time such article is entered,

(B) at the time such material is imported into the insular possession, may be imported into the customs territory from a foreign country, other than Cuba or the Philippine Republic, and entered free of duty; except that no article containing material to which (B) of this subdivision applies shall be exempt from duty under subdivision (i) unless adequate documentation is supplied to show that the material has been incorporated into such article during the 18-month period after the date on which such material is imported into the insular possession.

[See main edition for text of (iii)]

(iv) Subject to the provisions in section 213 of the Caribbean Basin Economic Recovery Act [19 U.S.C. 2703], articles which are imported from insular possessions of the United States shall receive duty treatment no less favorable than the treatment afforded such articles when they are imported from a beneficiary country under such Act [19 U.S.C. 2701 et seq.).

[See main edition for text of (b)]

(c) Products of Canada

(i) Products of Canada imported into the customs territory of the United States, whether imported directly or indirectly, are subject to the rates of duty set forth in

column numbered 1 of the schedules. The rates of duty for a Canadian article, as defined in subdivision (e)(ii) of this headnote, apply only as shown in the said column numbered 1.

(ii) The term "Canadian article", as used in the schedules, means an article which is the product of Canada, but does not include any article produced with the use of materials imported into Canada which are products of any foreign country (except materials produced within the customs territory of the United States), if the aggregate value of such imported materials when landed at the Canadian port of entry (that is, the actual purchase price, or, if not purchased, the export value, of such materials, plus, if not included therein, the cost of transporting such materials to Canada but exclusive of any landing cost and Canadian duty) was

(A) with regard to any motor vehicle or automobile truck tractor entered on or before December 31, 1967, more than 60 percent of the appraised value of the article imported into the customs territory of the United States; and

(B) with regard to any other article (including any motor vehicle or automobile truck tractor entered after December 31, 1967), more than 50 percent of the appraised value of the article imported into the customs territory of the United States.

(d) Products of Communist Countries-Notwithstanding any of the foregoing provisions of this headnote, the rates of duty shown in column numbered 2 shall apply to products, whether imported directly or indirectly, of the following countries and areas pursuant to section 401 of the Tariff Classification Act of 1962, to section 231 or 257(e)(2) of the Trade Expansion Act of 1962, or to action taken by the President thereunder: 2 Afghanistan, Albania, Bulgaria, Cuba,3

Czechoslovakia, Estonia,

German Democratic Republic and East Berlin,

Indochina (any part of Cambodia, Laos, or Vietnam which may be under Communist domination or control),

'In Proclamation 4697, dated October 23, 1979, the President, acting under authority of section 404(a) of the Trade Act of 1974 (88 Stat. 1978) amended general headnote 3(f) by deleting "China (any part of which may be under Communist domination or control)" and "Tibet", effective February 1, 1980, the date on which written notices of acceptance were exchanged, following adoption on January 24, 1980 by the Congress of a concurrent resolution of approval extending nondiscriminatory treatment to the products of the People's Republic of China.

'In Proclamation 3447, dated February 3, 1962, the President, acting under authority of section 620(a) of the Foreign Assistance Act of 1961 (75 Stat. 445), as amended, prohibited the importation into the United States of all goods of Cuban origin and all goods imported from or through Cuba, subject to such exceptions as the Secretary of the Treasury determines to be consistent with the effective operation of the embargo.

Korea (any part of which may be under
Communist domination or control),
Kurile Islands,

Latvia,

Lithuania,

Outer Mongolia,

Southern Sakhalin,

Tanna Tuva,

Union of Soviet Socialist Republics and the area in East Prussia under the provisional administration of the Union of Soviet So

cialist Republics.

(e) Products Eligible for Special Tariff Treatment.

(i) The "Special" column reflects rates of duty available under one or more special tariff treatment programs which are provided for in subdivision (e) of this headnote and which are identified in parentheses immediately following the rate(s) of duty set out in such column. Upon application in proper form by a person who possesses the right to make entry for the imported article, a special rate shall be applied to such article only if

(A) it is classified in an item for which a special rate (or rates) is set out in the "Special" column opposite such item;

(B) it is imported from a country

(1) which is designated as an eligible country with respect to such item under a program designated in the "Special" column opposite such item, and

(2) which is otherwise eligible for column 1 rates of duty; and

(C) it has satisfied all other requirements for eligibility for such program or programs.

(ii) Programs under which special tariff treatment may be provided to imported articles, and the corresponding symbols for such programs as they are indicated in the "Special" column, are as follows:

(iii)(A) Articles which are eligible for the special tariff treatment provided for in subdivision (e) of this headnote and which are subject to temporary modification under any provision of part 1 of the Appendix to these schedules shall be subject, for the period indicated in the "Effective Period" column in the Appendix, to rates of duty as follows:

(1) if the "Special" column in the Appendix is blank, the rate of duty in column numbered 1 therein shall apply;

(2) if a rate of duty for which the article may be eligible is set forth in the "Special" column in the Appendix followed by one or more symbols described above, such rate shall apply in lieu of the rate followed by the corresponding symbol(s) set forth for such article in the "Special" column in schedules 1 to 8; or

(3) if "No change" followed by one or more symbols described above appears in the "Special" column in the Appendix and subdivision (iii)(A)(2) above does not apply, the rate of duty in column numbered 1 in the Appendix or the applicable rate(s) of duty set forth in the "Special" column in schedules 1 to 8, whichever is lower, shall apply.

(B) Unless the context requires otherwise, articles which are eligible for the special tariff treatment provided for in subdivision (e) of this headnote and which are subject to temporary modification under any provision of parts 2 or 3 of the Appendix to these schedules shall be subject, for the period indicated in the Appendix, to the rates of duty in column numbered 1 therein.

(iv) Whenever any rate of duty set forth in the "Special" column in schedules 1 to 8 is equal to, or higher than, the corresponding rate of duty provided in column numbered 1 in such schedules, such rate of duty in the "Special" column shall be deleted; except that, if the rate of duty in the "Special" column is an intermediate stage in a series of staged rate reductions for that item, such rate shall be treated as a suspended rate and shall be set forth in the "Special" column, followed by one or more symbols described above, and followed by an "s" in parentheses. If no rate of duty for which the article may be eligible is provided in the "Special" column for a particular item in schedules 1 to 8, the rate of duty provided in column numbered 1 shall apply. (v) Products of Countries Designated Beneficiary Developing Countries for Purposes of the Generalized System of Preferences (GSP).

(A) The following countries, territories, and associations of countries eligible for treatment as one country (pursuant to section 502(a)(3) of the Trade Act of 1974 (19 U.S.C. 2462(a)(3))) are designated beneficiary developing countries for the purposes of the Generalized System of Preferences, provided for in Title V of the Trade Act of 1974, as amended (19 U.S.C. 2461 et seq.):

Independent Countries —Angola, Antigua and Barbuda, Argentina, Bahamas, Bahrain, Bangladesh, Barbados, Belize, Benin, Bhutan, Bolivia, Botswana, Brazil, Brunei Darussalam, Burkina Faso, Burma, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Colombia, Comoros, Congo, Costa Rica, Cote d'Ivoire, Cyprus, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Federated States of Micronesia, Fiji, Ghana, Grenada, Guatemala, Guinea, Guinea Bissau, Guyana, Haiti, Honduras, India, Indonesia, Israel, Jamaica, Jordan, Kenya, Kiribati, Korea, Repub

'Pursuant to section 4(b)(1) of the Taiwan Relations Act (22 U.S.C. 3303(b)(1)) the reference to countries includes Taiwan.

lic of, Lebanon, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mauritania, Mauritius, Mexico, Morocco, Mozambique, Nauru, Nepal, Niger, Oman, Pakistan, Papua New Guinea, Peru, Philippines, Republic of Marshall Islands, Rwanda, Saint Christopher and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Singapore, Solomon Islands, Somalia, Sri Lanka, Sudan, Suriname, Swaziland, Syria, Taiwan, Tanzania, Thailand, The Gambia, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Tuvalu, Uganda, Uruguay, Vanuatu, Venezuela, Western Samoa, Yemen Arab Republic (Sanaá), Yugoslavia, Zaire, Zambia, Zimbabwe.

Non-Independent Countries and Territories-Anguilla, Aruba, Bermuda, British Indian Ocean Territory, Cayman Islands, Christmas Island (Australia), Cocos (Keeling) Islands, Cook Islands, Falkland Islands (Islas Malvinas), French Polynesia, Gibraltar, Greenland, Heard Island and McDonald Islands, Hong Kong, Macau, Montserrat, Netherlands Antilles, New Caledonia, Niue, Norfolk Island, Pitcairn Islands, Saint Helena, Tokelau, Trust Territory of the Pacific Islands (Palau), Turks and Caicos Islands, Virgin Islands, British, Wallis and Futuna, Western Sahara.

Associations of Countries (treated as one country)

Member Countries of the Cartagena Agreement (Andean Group) Consisting of: Bolivia, Colombia, Ecuador, Peru, Venezuela.

Association of South East Asian Nations (ASEAN) Consisting of: Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand.

Member Countries of the Caribbean Common Market (CARICOM) Consisting of: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, Saint Christopher and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad, and Tobago.

(B) The following beneficiary countries are designated as least-developed beneficiary developing countries pursuant to section 504(c)(6) of the Trade Act of 1974, as amended [19 U.S.C. 2464(c)(6)]: Bangladesh, Benin, Bhutan, Botswana, Burkina Faso, Burundi, Cape Verde, Central African Republic, Chad, Comoros, Djibouti, Equatorial Guinea, Guinea, GuineaBissau, Haiti, Lesotho, Malawi, Maldives, Mali, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, Somalia, Sudan, Tanzania, The Gambia, Togo, Uganda, Western Samoa, Yemen Arab Republic (Sanaá).

Whenever an eligible article is imported into the customs territory of the United States directly from one of the countries

designated as a least-developed beneficiary developing country, it shall be entitled to receive the duty-free treatment provided for in subdivision (e)(v)(C) of this headnote without regard to the limitations on preferential treatment of eligible articles in section 504(c) of the Trade Act, as amended (19 U.S.C. 2464(c)).

(C) Articles provided for in an item for which a rate of duty appears in the "Special" column followed by the symbols "A" or "A" in parentheses are those designated by the President to be eligible articles for purposes of the GSP pursuant to section 503 of the Trade Act of 1974 [19 U.S.C. 2463]. The symbol "A" indicates that all beneficiary developing countries are eligible for preferential treatment with respect to all articles provided for in the designated TSUS item. The symbol "A" indicates that certain beneficiary developing countries, specifically enumerated in subdivision (e)(v)(D) of this headnote, are not eligible for such preferential treatment with regard to any article provided for in the designated TSUS item. Whenever an eligible article is imported into the customs territory of the United States directly from a country or territory listed in subdivision (e)(v)(A) of this headnote, it shall be eligible for duty-free treatment as set forth in the "Special" column, unless excluded from such treatment by subdivision (e)(v)(D) of this headnote; provided that, in accordance with regulations promulgated by the Secretary of the Treasury the sum of (1) 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 502(a)(3) of the Trade Act of 1974 [19 U.S.C. 2462(a)(3)], plus (2) 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.

(D) Articles provided for in an item for which a rate of duty appears in the "Special" column followed by the symbol “A*” in parentheses, if imported from a beneficiary developing country set opposite the TSUS item numbers listed below, are not eligible for the duty-free treatment provided in subdivision (e)(v)(C) of this headnote: