T A R I F F SCHEDULES OF THE UNITED STATES
GENERAL HEADNOTES AND RULES OF INTERPRETATION
1. Tariff Treatment of Imported Articles. All articles Imported Into the customs territory of the United States from outside thereof are subject to duty or exempt therefrom as prescribed In general headnote 3. 2. Customs Territory of the United States. The term "customs territory of the United States", as used In the schedules, includes only the States, the District of Columbia, and Puerto Rico. 3. Rates of Duty. The rates of duty In the "Rates of Duty" columns numbered I and 2 of the schedules apply to articles Imported into the customs territory of the United States as hereinafter provided in this headnote: (a) Products of Insular Possessions. (I) Articles imported from insular possessions of the United States which are outside the customs territory of *-he United States are subject to the rates of duty set forth in column numbered I of the schedules, except that all 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 50 percent of their total value, 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 50 percent, no material shall be considered foreign which, at the time such article is entered, may be imported into the customs territory from a foreign country, other than Cuba or the Philippine Republic, and entered free of duty. (bl Products of Cuba. Products of Cuba 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 I of the schedules. Preferential rates of duty for such products apply only as shown In the said column I. 1/ Ic) Products of the Philippine Republic. (I) Products of the Philippine Republic imported Into the customs territory of the United States, whether Imported directly or Indirectly, are subject to the rates of duty which are set forth in column numbered I of the schedules or to fractional parts of the rates In the said column I, as hereinafter prescribed in subdivisions (cKIII and (c)(iiil of this headnote. (II) Except as otherwise prescribed in the schedules, a Philippine article, as defined in subdivision (c)(Iv) of this headnote, imported into the customs territory of the United States and entered on or before July 3, 1974, is subject to that rate which results
1 / By virtue of section 401 of the Tariff Classification Act of 1962, the application to products of Cuba of either a preferential or other reduced rate of duty in column 1 is suspended. See general headnote 3 C d), infra. The provisions for preferential Cuban rates continue to be reflected in the schedules because, under section 401, the rates therefor in column 1 still form the bases for determining the rates of duty applicable to certain products, including "Philippine articles".
from the application of the following percentages to the most favorable rate of duty (I.e., Including a preferential rate prescribed for any product of Cuba) set forth In column numbered I of the schedules: (A) 20 percent, during calendar years 1963 through 1964, (B) 40 percent, during calendar years 1965 through 1967, (C) 60 percent, during calendar years 1963 through 1970, (D) 80 percent, during calendar years 1971 through 1973, (E) 100 percent, during the period fromi January I, 1974, through July 3, 1974. ( H i) Except as otherwise prescribed in the schedules, products of the Philippine Republic, other than Philippine articles, are subject to the rates of duty (except any preferential rates prescribed for products of Cuba) set forth in column numbered I of the schedules. (Ivl The terra "Philippine article", as used in the schedules, means an article which is the product of the Philippines, but does not include any article produced with the use of materials Imported into the Philippines 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 Philippine port of entry, exclusive of any landing cost and Philippine duty, was more than 20 percent of the appraised customs value of the article Imported into the customs territory of the United States. Id) 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 257l«)(2) of the Trade Expansion Act of 1962, or to action taken by the President thereunder! AI ban la Bui gar !a China (any part of which may be under Communist domination or control) Cuba 2/ Czechoslovakia Estonia Germany (the Soviet zone and the Soviet sector of BerI in) Hungary Indochina (any part of Cambodia, Laos, or Vietnam which may be under Communist domination or control) Korea (any part which may be under Communist domination or control) Kurile Islands Latvia Lithuania Outer Mongol la Ruman i a Southern Sakha I in Tanna Tuva Tibet Union of Soviet Socialist Republics and the area in East Prussia under the provisional administration of the Union of Soviet Social 1st RepublIcs.
2 / In Proclamation 3447, dated February 3, 1962,"the President, acting under authority of section 620(a) of the Foreign Assistance Act of I96I (75 Stat. 4 4 5), 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
�
