I
106TH CONGRESS
2D SESSION
H. R. 4026
To amend the Harmonized Tariff Schedule of the United States to provide
duty-free treatment for certain foodstuffs originating in NAFTA countries.
IN THE HOUSE OF REPRESENTATIVES
MARCH 16, 2000
Mr. SHAW introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Harmonized Tariff Schedule of the United
States to provide duty-free treatment for certain food-
stuffs originating in NAFTA countries.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DUTY-FREE TREATMENT OF CERTAIN FOOD-
STUFFS ORIGINATING IN NAFTA COUNTRIES.
(a) AMENDMENTS TO U.S. NOTES.—Subchapter II
of chapter 98 of the Harmonized Tariff Schedule of the
United States is amended by adding after U.S. note 6 the
following new note:
‘‘7. Food preparations that are the product of Canada or
Mexico consisting of, or processed using, a material
exported from the United States.—The following pro-
visions apply only to subheading 9802.00.95:
‘‘(a) Entry of any product described by subheading
9802.00.95:
‘‘(i) shall not be subject to duty under the pro-
visions of subchapter IV of chapter 99; and
‘‘(ii) if a tariff-rate quota provision would have
applied to such product but for subheading
9802.00.95, the quantity of the product
entered under that subheading shall not be
counted against the quantity specified as
the in-quota quantity for any such product.
‘‘(b) The term ‘product of Canada or Mexico’ means
a good:
‘‘(i) that is determined to be a product of Can-
ada or of Mexico under rules of origin pro-
mulgated by the Secretary of the Treasury
pursuant to Annex 311 of the North
American Free Trade Agreement, as im-
plemented under the North American Free
Trade Agreement Implementation Act; or
‘‘(ii) that is processed, packaged, or otherwise
advanced in value or improved in condition
in Canada or Mexico (or both) and that is
determined to be a product of the United
States under such rules of origin.
‘‘(c) The term ‘products of the United States’ means
goods or materials that are determined to be
products of the United States under rules of or-
igin promulgated by the Secretary of the Treas-
ury pursuant to Annex 311 of the North Amer-
ican Free Trade Agreement, as implemented
under the North American Free Trade Agree-
ment Implementation Act.
‘‘(d) The term ‘manufactured or processed in Can-
ada or Mexico (or both) using a good or mate-
rial that was exported from the United States’
includes, but is not limited to:
‘‘(i) processing in Canada or Mexico using a
good or material that previously was im-
ported into the United States; and
‘‘(ii) processing in Canada or Mexico using a
good or material that was processed in a
country or countries other than Canada or
Mexico after exportation from the United
States, if such processing did not effect a
change in the country of origin of the good
as exported from the United States.’’.
(b) DUTY-FREE TREATMENT.—Subchapter II of
chapter 98 of the Harmonized Tariff Schedule of the
United States is amended by inserting in numerical se-
quence the following new heading:
‘‘
9802.00.95
Any good of chapter 4, 18, 19, or
21, of heading 1704, or of sub-
heading 1517.90.50, 1517.90.60,
1701.91.44, 
1701.91.48,
1701.91.54, 
1701.91.58,
2202.90.24, or 2202.90.28, that is
a product of Canada or Mexico and
that was manufactured or proc-
essed in Canada or Mexico (or
both) using a good or material ex-
ported from the United States, if
the following conditions are met:
(1) the good as imported into the
United States is an originating
good satisfying the requirements of
General Note 12 of the tariff
schedule; (2) any goods or mate-
rials of heading 0401, 0402, 0403,
0404, 0405, or 0406 and any goods
or materials described in additional
U.S. note 1 to chapter 4 that were
used in the processing of the good
in Canada or Mexico were products
of the United States; (3) if the
good as imported into the United
States is described in any of head-
ings 0401 through 0406, any good
or material classified within any
such heading that was used in the
processing in Canada or in Mexico
(or both) was a product of the
United States, and such processing
did not effect a change in the tariff
classification of such good or mate-
rial to another such heading; and
(4) if the good as imported into the
United States is described in addi-
tional U.S. note 2, 3, or 4 to chap-
ter 17 or additional note 2 to chap-
ter 19, such good does not contain
more than 10 percent by dry
weight of sugar derived from sugar
cane or sugar beets grown in any
foreign country or countries ...........
Free (see U.S.
note 7 of this
subchapter)
’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall apply to goods entered, or
withdrawn from warehouse for consumption on or after
the 15th day after the date of the enactment of this Act.
Æ