(B) that article is imported directly from Israel into the customs territory of the United States; and (C) the sum of— (i) the cost of value of the materials produced in Israel, plus (ii) the direct costs of processing operations performed in Israel, is not less than 35 percent of the appraised value of such article at the time it is entered. If the cost or value of materials produced in the customs territory of the United States is included with respect to an article to which this subsection applies, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the percentage referred to in subparagraph (C). (2) No article may be considered to meet the requirements of paragraph (1)(A) 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. (b) As used in this section, 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 (A) profit, and (B) 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. (c) REGULATIONS.-The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this section. SEC. 403. APPLICATION OF CERTAIN OTHER TRADE LAW PROVISIONS. (a) SUSPENSION OF DUTY-FREE TREATMENT.-The President may by proclamation suspend the reduction or elimination of any duty provided under any trade agreement provision entered into with İsrael under the authority of section 102(b)(1) of the Trade Act of 1974 with respect to any article and may proclaim a duty rate for such article if such action is proclaimed under section 203 of the Trade Act of 1974 or section 232 of the Trade Expansion Act of 1962. (b) ITC REPORTS.-In any report by the United States International Trade Commission (hereinafter referred to in this title as the "Commission") to the President under section 202(f) of the Trade Act of 1974 regarding any article for which a reduction or elimina tion of any duty is provided under a trade agreement entered into with Israel under section 102(b)(1) of the Trade Act of 1974, the Commission shall state whether and to what extent its findings and recommendations apply to such an article when imported from Israel. (c) For purposes of section 203 of the Trade Act of 1974, the suspension of the reduction or elimination of a duty under subsection (a) shall be treated as an increase in duty. (d) No proclamation which provides solely for a suspension referred to in subsection (a) with respect to any article shall be made under section 203 of the Trade Act of 1974 unless the Commission, in addition to making an affirmative determination with respect to such article under section 202(b) of the Trade Act of 1974, determines in the course of its investigation under that section that the serious injury (or threat thereof) substantially caused by imports to the domestic industry producing a like or directly competitive article results from the reduction or elimination of any duty provided under any trade agreement provision entered into with Israel under under section 102(b)(1) of the Trade Act of 1974. (e)(1) Any proclamation issued under section 203 of the Trade Act of 1974 that is in effect when an agreement with Israel is entered into under section 102(b)(1) of the Trade Act of 1974 shall remain in effect until modified or terminated. (2) If any article is subject to import relief at the time an agreement is entered into with Israel under section 102(b)(1) of the Trade Act of 1974, the President may reduce or terminate the application of such import relief to the importation of such article before the otherwise scheduled date on which such reduction or termination would occur pursuant to the criteria and procedures of sections 203 and 204 of the Trade Act of 1974. SEC. 404. FAST TRACK PROCEDURES FOR PERISHABLE ARTICLES. (a) If a petition is filed with the Commission under the provisions of section 202(a) of the Trade Act of 1974 regarding a perishable product which is subject to any reduction or elimination of a duty imposed by the United States under a trade agreement entered into with Israel under section 102(b)(1) of the Trade Act of 1974 and alleges injury from imports of that product, then the petition may also be filed with the Secretary of Agriculture with a request that emergency relief be granted under subsection (c) with respect to such article. (b) Within 14 days after the filing of a petition under subsection (a) (1) if the Secretary of Agriculture has reason to believe that a perishable product from Israel is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing a perishable product like or directly competitive with the imported product and that emergency action is warranted, he shall advise the President and recommend that the President take emergency action; or (2) the Secretary of Agriculture shall publish a notice of his determination not to recommend the imposition of emergency action and so advise the petitioner. (c) Within 7 days after the President receives a recommendation from the Secretary of Agriculture to take emergency action under subsection (b), he shall issue a proclamation withdrawing the reduction or elimination of duty provided to the perishable product under any trade agreement provision entered into under section 102(b)(1) of the Trade Act of 1974 or publish a notice of his determination not to take emergency action. (d) The emergency action provided under subsection (c) shall cease to apply (1) upon the taking of action under section 203 of the Trade Act of 1974; (2) on the day a determination of the President under section 203 of such Act not to take action becomes final; (3) in the event of a report of the Commission containing a negative finding, on the day the Commission's report is submitted to the President; or (4) whenever the President determines that because of changed circumstances such relief is no longer warranted. (e) For purposes of this section, the term "perishable product" means any (1) live plants and fresh cut flowers provided for in chapter 6 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202, hereinafter referred to as the "HTS"): (2) vegetables, edible nuts or fruit provided for in chapters 7 and 8, heading 1105, subheadings 1106.10.00 and 1106.30, heading 1202, subheadings 1214.90.00 and 1704.90.60, headings 2001 through 2008 (excluding subheadings 2001.90.20 and 2004.90.10) and subheading 2103.20.40 of the HTS; (3) concentrated citrus fruit juice provided for in subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS. (f) No trade agreement entered into with Israel under section 102(b)(1) of the Trade Act of 1974 shall affect fees imposed under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624). SEC. 405. CONSTRUCTION OF TITLE. Neither the taking effect of any trade agreement provision entered into with Israel under section 102(b)(1), nor any proclamation issued to implement any such provision, may affect in any manner, or to any extent, the application to any Israeli articles of section 232 of the Trade Expansion Act of 1962, section 337 of title VII of the Tariff Act of 1930, chapter 1 of title II and chapter 1 of title III of the Trade Act of 1974, or any other provision of law under which relief from injury caused by import competition or by unfair import trade practices may be sought. United States-Israel Free Trade Area Implementation Act of 1985 [19 U.S.C. 2112; P.L. 99-47] SECTION 1. SHORT TITLE. This Act may be cited as the "United States-Israel Free Trade Area Implementation Act of 1985". SEC. 2. PURPOSES. The purposes of this Act are— (1) to approve and implement the agreement on the establishment of a free trade area between the United States and Israel negotiated under the authority of section 102 of the Trade Act of 1974; (2) to strengthen and develop the economic relations between the United States and Israel for their mutual benefit; and (3) to establish free trade between the two nations through the removal of trade barriers. SEC. 3. APPROVAL OF A FREE TRADE AREA AGREEMENT. Pursuant to section 102 and 151 of the Trade Act of 1974 (19 U.S.C. 2112; 2191), the Congress approves (1) the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel (hereinafter in this Act referred to as "the Agreement") entered into on April 22, 1985, and submitted to the Congress on April 29, 1985, and (2) the statement of administrative action proposed to implement the Agreement that was submitted to the Congress on April 29, 1985. SEC. 4. PROCLAMATION AUTHORITY. (a) TARIFF MODIFICATIONS.-Except as provided in subsection (c), the President may proclaim (1) such modifications or continuance of any existing duty, (2) such continuance of existing duty-free or excise treatment, or (3) such additional duties, as the President determines to be required or appropriate to carry out the schedule of duty reductions with respect to Israel set forth in annex 1 of the Agreement. (b) ADDITIONAL TARIFF MODIFICATION AUTHORITY.-Except as provided in subsection (c), whenever the President determines that it is necessary to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the Agreement, the President may proclaim (1) such withdrawal, suspension, modification, or continuance of any duty, (2) such continuance of existing duty-free or excise treatment, or (3) such additional duties, as the President determines to be required or appropriate to carry out the Agreement. (c) EXCEPTION TO AUTHORITY.-No modification of any duty imposed on any article provided for in paragraph (4) of annex 1 of the Agreement that may be proclaimed under subsection (a) or (b) shall take effect prior to January 1, 1995. SEC. 5. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW. (a) UNITED STATES STATUTES TO PREVAIL IN CONFLICT.-No provision of the Agreement, nor the application of any such provision to any person or circumstance, which is in conflict with (1) title IV of the Trade and Tariff Act of 1984, or shall be given effect under the laws of the United States. (b) IMPLEMENTING REGULATIONS.-Regulations that are necessary or appropriate to carry out actions proposed in any statement of proposed administrative action submitted to the Congress under section 102 of the Trade Act of 1974 (19 U.S.C. 2112) in orde: implement the Agreement shall be prescribed. Initial regulations to carry out such action shall be issued within one year after the date of the entry into force of the Agreement. (c) CHANGES IN STATUTES TO IMPLEMENT A REQUIREMENT, AMEND MENT, OR RECOMMENDATION.— (1) Except as otherwise provided in paragraph (2), the provi sions of section 3(c) of the Trade Agreements Act of 1979 19 U.S.C. 2504(c)) shall apply with respect to the Agreement and (A) no requirement of, amendment to, or recommenda tion under the Agreement shall be implemented under United States law, and (B) no amendment, repeal, or enactment of a statute of the United States to implement any such requirement amendment, or recommendation shall enter into force with respect to the United States, unless there has been compliance with the provisions of section 3(c) of the Trade Agreements Act of 1979. (2) The provisions of section 3(c)(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2504(c)(4)) shall apply to any bill impie menting any requirement of, amendment to, or recommenda tion made under, the Agreement that reduces or eliminates any duty imposed on any article provided for in paragraph 4 of Annex 1 of the Agreement only if (A) any reduction of such duty provided in such bill (i) takes effect after December 31, 1989, and (ii) takes effect gradually over the period that begins on January 1, 1990, and ends on December 31, 1994. (B) any elimination of such duty provided in such bi does not take effect prior to January 1, 1995, and (C) the consultations required under section 3(c)1) of such Act occur at least ninety days prior to the date or which such bill is submitted to the Congress under section 3(c) of such Act. (d) PRIVATE REMEDIES NOT CREATED.-Neither the entry into force of the Agreement with respect to the United States, nor the enactment of this Act, shall be construed as creating any private right of action or remedy for which provision is not explicitly made under this Act or under the laws of the United States. SEC. 6. TERMINATION. The provisions of section 125(a) of the Trade Act of 1974 9 U.S.C. 2135(a)) shall not apply to the Agreement. [SEC. 7. LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT UNDER TRADE AGREEMENTS ACT OF 1979 IN THE CASE OF CERTAIN ISRAELI PRODUCTS. Amendment to section 308(4) of the Trade Agreements Act of 1979.1 |