page 19    CBERA
     Antigua and Barbuda        Grenada           St. Kitts and Nevis      Aruba           Guyana           Saint Lucia      Bahamas           Haiti            Saint Vincent and the      Barbados           Jamaica           Grenadines      Belize           Montserrat          Trinidad and Tobago      Curaçao           Netherlands          Virgin Islands, British      Dominica           Antilles 1/

(b) (i) Unless otherwise excluded from eligibility by the provisions of subdivisions (d) or (e) of this note, any article which is the growth, product, or manufacture of a beneficiary country shall be eligible for duty-free treatment if that article is provided for in a subheading for which a rate of duty of "Free" appears in the "Special" subcolumn followed by the symbol "E" or "E*" in parentheses, and if--

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

(B) the sum of (I) the cost or value of the materials produced in a beneficiary country or two or more beneficiary countries, plus (II) the direct costs of processing operations performed in a beneficiary country or countries is not less than 35 per centum of the appraised value of such article at the time it is entered. For purposes of determining the percentage referred to in (II) above, the term "beneficiary country" includes the Commonwealth of Puerto Rico, the United States Virgin Islands, and any former beneficiary country. The term “former beneficiary country” means a country that ceases to be designated as a beneficiary country under the Caribbean Basin Economic Recovery Act because the country has become a party to a free trade agreement with the United States. If the cost or value of materials produced in the customs territory of the United States (other than the Commonwealth of Puerto Rico) is included with respect to an article to which this note applies, an amount not to exceed 15 per centum of the appraised value of the article at the time it is entered that is attributed to such United States cost or value may be applied toward determining the percentage referred to in (II) above.

(C) For the purposes of this note, the former beneficiary countries are as follows:

El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic, Costa Rica, Panama

(ii) Pursuant to subsection 213(a)(2) of the CBERA, the Secretary of the Treasury shall prescribe such regulation as may be necessary to carry out this note including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under CBERA, an article must be wholly the growth, product, or manufacture of a beneficiary country, or must be a new or different article of commerce which has been grown, produced, or manufactured in the beneficiary country, and must be stated as such in a declaration by the appropriate party; but no article or material of a beneficiary 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.

(iii) As used in subdivision (b) of this note, the phrase "direct costs of processing operations" includes, but is not limited to--

(A) all actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training and the cost of engineering, supervisory, quality control, and similar personnel; and

(B) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise.

Such phrase does not include costs which are not directly attributable to the merchandise concerned or are not costs of manufacturing the product, such as (I) profit, and (II) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions or expenses.

(iv) Notwithstanding section 311 of the Tariff Act of 1930 (19 U.S.C. 1311), the products of a beneficiary country which are imported directly from such country into Puerto Rico may be entered under bond for processing or manufacturing in Puerto Rico. No duty shall be imposed on the withdrawal from warehouse of the product of such processing or manufacturing if, at the time of such withdrawal, such product meets the requirements of subdivision (b)(i)(B) above.

1/ Netherlands Antilles remains listed but, because of legal changes in its status, eligibility for its goods has ended.
page 20    CBERA
   (v) Pursuant to subsection 213(a)(5) of the CBERA, duty-free treatment shall be provided under the CBERA to an article (other than an article enumerated in subsection 213(b) of the CBERA) which is the growth, product, or manufacture of Puerto Rico if--

(A) the article is imported directly from the beneficiary country into the customs territory of the United States,

(B) the article was by any means advanced in value or improved in condition in a beneficiary country, and

(C) any materials are added to the article in a beneficiary country, such materials are a product of a beneficiary country or the United States.

(c) Articles provided for in a provision for which a rate of duty of "Free" appears in the "Special" subcolumn followed by the symbols "E" or "E*" in parentheses are eligible articles for purposes of the CBERA pursuant to section 213 of that Act. The symbol "E" indicates that all articles provided for in the designated provision are eligible for preferential treatment except those described in subdivision (e). The symbol "E*" indicates that some articles provided for in the designated provision are not eligible for preferential treatment, as further described in subdivision (d) of this note. Whenever an eligible article is imported into the customs territory of the United States in accordance with the provisions of subdivision (b) of this note from a country or territory listed in subdivision (a) of this note, it shall be eligible for duty-free treatment as set forth in the "Special" subcolumn, unless excluded from such treatment by subdivisions (d) or (e) of this note. Whenever a rate of duty other than "Free" appears in the special subcolumn followed by the symbol "E" in parentheses, articles imported into the customs territory of the United States in accordance with the provisions of subdivision (b) of this note from a country or territory listed in subdivision (a) of this note shall be eligible for such rate in lieu of the rate of duty set forth in the "General" subcolumn.

(d) Articles provided for in a provision for which a rate of duty of "Free" appears in the "Special" subcolumn followed by the symbol "E*" in parentheses shall be eligible for the duty-free treatment provided for in this note, except--

(i) articles of beef or veal, however provided for in chapter 2 or chapter 16 and heading 2301, and sugars, sirups and molasses, provided for in heading 1701 and subheadings 1702.90.20 and 2106.90.44, if a product of the following countries, pursuant to section 213(c) of the CBERA:

Antigua and Barbuda Montserrat Netherlands Antilles Saint Lucia Saint Vincent and the Grenadines

(ii) sugars, sirups and molasses, provided for in heading 1701 and subheadings 1702.90.20 and 2106.90.44, to the extent that importation and duty-free treatment of such articles are limited by additional U.S. note 4 of chapter 17, pursuant to section 213(d) of the CBERA; or

(iii) except as provided in subdivision (f) of this note, textile and apparel articles--

(A) of cotton, wool or fine animal hair, man-made fibers, or blends thereof in which those fibers, in the aggregate, exceed in weight each other single component fiber thereof; or

(B) in which either the cotton content or the man-made fiber content equals or exceeds 50 percent by weight of all component fibers thereof; or

(C) in which the wool or fine animal hair content exceeds 17 percent by weight of all component fibers thereof; or

(D) containing blends of cotton, wool or fine animal hair, or man-made fibers, which fibers, in the aggregate, amount to 50 percent or more by weight of all component fibers thereof;

provided, that beneficiary country exports of handloom fabrics of the cottage industry, or handmade cottage industry products made of such handloom fabrics, or traditional folklore handicraft textile products, if such products are properly certified under an arrangement established between the United States and such beneficiary country, are eligible for the duty-free treatment provided for in this note.