Country of Origin Marking of Products From the West Bank and Gaza

DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 97-16]

Country of Origin Marking of Products From the West Bank and Gaza

AGENCY: U.S. Customs Service, Department of the Treasury

ACTION: Notice of policy.

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SUMMARY: This document clarifies T.D. 95-25 by notifying the public

that, with respect to imported goods which are produced in the West

Bank and Gaza Strip, acceptable country of origin markings consist of

``West Bank/Gaza,'' ``West Bank/Gaza Strip,'' ``West Bank and Gaza,''

and ``West Bank and Gaza Strip'' as well as ``West Bank,'' ``Gaza'' or

``Gaza Strip.''

EFFECTIVE DATE: The position set forth in this document is effective

for merchandise entered or withdrawn from warehouse for consumption on

or after March 14, 1997.

FOR FURTHER INFORMATION CONTACT: Craig Walker, Special Classification

and Marking Branch (202) 482-6980.

SUPPLEMENTARY INFORMATION:

Background

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304),

provides that, unless excepted, every article of foreign origin (or its

container) imported into the U.S. shall be marked in a conspicuous

place as legibly, indelibly, and permanently as the nature of the

article (or its container) will permit, in such a manner as to indicate

to the ultimate purchaser in the U.S. the English name of the country

of origin of the article. Failure to mark an article in accordance with

the requirements of 19 U.S.C. 1304 shall result in the levy of a duty

of ten percent ad valorem. Part 134, Customs Regulations (19 CFR Part

134), implements the country of origin marking requirements and

exceptions of 19 U.S.C. 1304.

T.D. 95-25

T.D. 95-25, published in the Federal Register on April 6, 1995 (60

FR 17607), discussed the proper country of origin marking for imported

goods produced in the West Bank and Gaza Strip. Prior to the issuance

of the T.D., Customs had taken the position that, in order for the

country of origin marking of a good which was produced in the West Bank

or Gaza Strip to be considered acceptable, the word ``Israel'' must

appear in the marking designation. However, by letter dated October 24,

1994, the Department of State advised the Department of the Treasury

that, in view of certain developments, principally the Israeli-PLO

Declaration of Principles on Interim Self-Government Arrangements

(signed on September 13, 1993), the primary purpose of 19 U.S.C. 1304

would be best served if goods produced in the West Bank and Gaza Strip

were permitted to be marked ``West Bank'' or ``Gaza Strip.''

Accordingly, as Customs has previously relied upon advice received

from the Department of State in making determinations regarding the

``country of origin'' of a good for marking purposes, Customs notified

the public in T.D. 95-25 that, unless excepted from marking, goods

produced in the West Bank or Gaza Strip shall be marked as ``West

Bank,'' ``Gaza,'' or ``Gaza Strip.'' The T.D. further stated that the

country of origin markings of such goods shall not contain the words

``Israel,'' ``Made in Israel,'' ``Occupied Territories-Israel,'' or

words of similar meaning.

Clarification

Subsequent to the issuance of T.D. 95-25, the Israeli-Palestinian

Interim Agreement was signed, granting additional powers and

responsibilities to the Palestinian Authority. In addition, an

amendment to the United States-Israel Free Trade Area Implementation

Act of 1985 (19 U.S.C. 2112 note), enacted on October 3, 1996,

authorized the President to proclaim duty-free treatment to products of

the West Bank and Gaza Strip. Such duty-free treatment was implemented

by Presidential Proclamation 6955 dated November 13, 1996, effective

for products of the West Bank and Gaza Strip entered or withdrawn from

warehouse for consumption on or after November 21, 1996.

By letter dated January 13, 1997, the Department of State advised

the Department of the Treasury that the Palestinian Authority has asked

that the U.S. accept the country of origin marking ``West Bank/Gaza''

so as to reaffirm the territorial unity of the two areas. The

Department of State further advised that it considers the West Bank and

Gaza Strip to be one area for political, economic, legal and other

purposes. Accordingly, the Department of State requested that Customs

accept the country of origin markings ``West

[[Page 12270]]

Bank/Gaza'' and ``West Bank and Gaza'' for products from those areas,

and that Customs continue to accept the markings ``West Bank,''

``Gaza'' and ``Gaza Strip.''

Pursuant to the request of the Department of State, this document

notifies the public that acceptable country of origin markings for

goods produced in the territorial areas known as the West Bank or Gaza

Strip consist of the following: ``West Bank/Gaza,'' ``West Bank/Gaza

Strip,'' ``West Bank and Gaza,'' ``West Bank and Gaza Strip,'' ``West

Bank,'' ``Gaza,'' and ``Gaza Strip.'' The position stated in this

document is effective for merchandise which is entered or withdrawn

from warehouse for consumption on or after the date of publication in

the Federal Register.

Dated: March 7, 1997.

Stuart P. Seidel,

Assistant Commissioner, Office of Regulations and Rulings.

[FR Doc. 97-6434 Filed 3-13-97; 8:45 am]

BILLING CODE 4820-02-P