114 STAT. 2162
PUBLIC LAW 106-476—NOV. 9, 2000
SEC. 1433. AMENDMENTS TO HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES.
(a) HEADING. — Subchapter XVII of Chapter 98 is amended by
inserting in numerical sequence the following new heading:
Deadline.
Prototypes to be used exclusively for development, testing,
product evaluation, or quality
control purposes
The rate applicable in the absence of this
heading
(b) U.S. NOTE. — The U.S. Notes to subchapter XVII of chapter
98 are amended by adding at the end the following:
"6. The following provisions apply to heading 9817.85.01:
"(a) For purposes of this subchapter, including heading 9817.85.01,
the term 'prototypes' means originals or models of articles that—
"(i) are either in the preproduction, production, or postproduction
stage and are to be used exclusively for development, testing,
product evaluation, or quality control purposes; and
"(ii) in the case of originals or models of articles that are either
in the production or postproduction stage, are associated with
a design change from current production (including a refinement,
advancement, improvement, development, or quality control in
either the product itself or the means for producing the product).
For purposes of clause (i), automobile racing for purse, prize, or
commercial competition shall not be considered to be "development, testing, product evaluation, or quality control.".
"(b)(i) Prototypes may be imported only in limited noncommercial
quantities in accordance with industry practice.
"(ii) Except as provided for by the Secretary of the Treasury, prototypes or parts of prototypes may not be sold after importation
into the United States or be incorporated into other products
that are sold.
"(c) Articles subject to quantitative restrictions, antidumping orders,
or countervailing duty orders may not be classified as prototypes
under this note. Articles subject to licensing requirements, or
which must comply with laws, rules, or regulations administered
by agencies other than the United States Customs Service before
being imported, may be classified as prototypes if they comply
with all applicable provisions of law and otherwise meet the
definition of'prototypes' under paragraph (a).".
SEC. 1434. REGULATIONS RELATING TO ENTRY PROCEDURES AND
SALES OF PROTOTYPES.
(a) IDENTIFICATION OF PROTOTYPES.—The Secretary of the
Treasury shall promulgate regulations regarding the identification
of prototypes at the time of importation into the United States
in accordance with the provisions of this chapter and the amendments made by this chapter.
(b) SALES OF PROTOTYPES.—Not later than 10 months after
the date of the enactment of this Act, the Secretary of the Treasury
shall promulgate final regulations regarding the sale of prototypes
entered under heading 9817.85.01 of the Harmonized Tariff
Schedule of the United States as scrap, or waste, or for recycling,
if all duties are tendered for sales of the prototj^pes, including
prototj^es and parts of prototypes incorporated into other products,
as scrap, waste, or recycled materials, at the rate of duty in effect
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