‘‘(i) remain under the control of the
customs authority in an intermediate coun-
try;
‘‘(ii) do not enter into the commerce
of an intermediate country except for the
purpose of a sale other than at retail, but
only if the articles are imported as a result
of the original commercial transactions be-
tween the importer and the producer or
the producer’s sales agent; and
‘‘(iii) have not been subjected to oper-
ations other than loading, unloading, or
other activities necessary to preserve the
article in good condition.
‘‘(6) DOCUMENTATION REQUIRED.—An article
is eligible for the duty exemption under this section
only if—
‘‘(A) the importer certifies that the article
meets the conditions for the duty exemption;
and
‘‘(B) when requested by the Customs Serv-
ice, the importer, manufacturer, or exporter
submits a declaration setting forth all pertinent
information with respect to the article, includ-
ing the following:
‘‘(i) A description of the article, quan-
tity, numbers, and marks of packages, in-
voice numbers, and bills of lading.
‘‘(ii) A description of the operations
performed in the production of the article
in the West Bank, the Gaza Strip, a quali-
fying industrial zone, or Israel and identi-
fication of the direct costs of processing
operations.
‘‘(iii) A description of any materials
used in production of the article which are
wholly the growth, product, or manufac-
ture of the West Bank, the Gaza Strip, a
qualifying industrial zone, Israel or United
States, and a statement as to the cost or
value of such materials.
‘‘(iv) A description of the operations
performed on, and a statement as to the
origin and cost or value of, any foreign
materials used in the article which are
claimed to have been sufficiently processed
in the West Bank, the Gaza Strip, a quali-
fying industrial zone, or Israel so as to be
materials produced in the West Bank, the
Gaza Strip, a qualifying industrial zone, or
Israel.
‘‘(v) A description of the origin and
cost or value of any foreign materials used
in the article which have not been substan-
tially transformed in the West Bank, the
Gaza Strip, or a qualifying industrial zone.
‘‘(c) SHIPMENT OF ARTICLES OF ISRAEL THROUGH
WEST BANK OR GAZA STRIP.—The President is author-
ized to proclaim that articles of Israel may be treated as
though they were articles directly shipped from Israel for
the purposes of the Agreement even if shipped to the Unit-
ed States from the West Bank, the Gaza Strip, or a quali-
fying industrial zone, if the articles otherwise meet the re-
quirements of the Agreement.
‘‘(d) TREATMENT OF COST OR VALUE OF MATE-
RIALS.—The President is authorized to proclaim that the
cost or value of materials produced in the West Bank, the
Gaza Strip, or a qualifying industrial zone may be in-
cluded in the cost or value of materials produced in Israel
under section 1(c)(i) of Annex 3 of the Agreement, and
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 oper-
ations performed in Israel under section 1(c)(ii) of Annex
3 of the Agreement.
‘‘(e) QUALIFYING INDUSTRIAL ZONE DEFINED.—
For purposes of this section, a ‘qualifying industrial zone’
means any area that—
‘‘(1) encompasses portions of the territory of Is-
rael 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.’’.
Passed the House of Representatives April 16, 1996.
Attest:
Clerk.