98 STAT. 3528
PROCLAMATION 5133—NOV. 30, 1983
ANNEX Modifications to the Tariff Schedules of the United States A. The TSUS is modified by adding the following new general headnote 3(g): "(g) Products of Countries Designated as Beneficiary Countries for Purposes of the Caribbean Basin Economic Recovery Act (CBERAJ. (1) The following countries and territories or successor political entities are designated beneficiary countries for the purposes of the CBERA, pursuant to section 212 of that Act (19 U.S.C. 2702): Barbados Costa Rica Dominica Dominican Republic Jamaica Netherlands Antilles
Panama Saint Christopher-Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago
(ii)(A) Unless otherwise excluded from eligibility by the provisions of subdivision (g)(iii) of this headnote, any article which is the growth, product, or manufacture of a beneficiary country shall receive duty-free treatment if— (1) that article is imported directly from a beneficiary country into the customs territory of the United States; and (2) 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 subparagraph (2) above, the term "beneficiary country" includes the Commonwealth of Puerto Rico and the United States Virgin Islands. 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 paragraph 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 subparagraph (2). (B) Pursuant to section 213(a)(2) of the CBERA, the Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out subdivision (g) of this headnote including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under the 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 manufacturer or exporter of the article accompanied by an endorsement thereof by the importer or consignee; but no article or material of a beneficiary country shall be eligible for such treatment by virtue of having merely undergone— (1) simple combining or packaging operations, or (2) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. (C) As used in subdivision (g)(ii) of this headnote, the phrase "direct costs of processing operations" includes, but is not limited to— (1) 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 (2) 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.
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