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Technical Details About QIZ for Question & Answer Session?
A1. Yes. The QIZ producer has the right to mix his share between the two ways. For example, if he is able to satisfy only 3% out of his 11.7% share, he can make up the difference from his 20% share of cost of production and vice versa, as long as his share and that of the Israeli and West Bank and Gaza Strip amount to a minimum of 35% of the U.S. appraised value of the product. Q2. Is every product produced in a QIZ entitled to duty-free entry into the U.S.? What rules of origin apply? A2. No. Products from QIZs are entitled for duty-free entry if and only if: No articles should be considered a new or different articles of commerce, and no materials shall be included for purposes of determining the 35% requirement, by virtue of merely having undergone simple combining or packaging operations, or mere dilution with water, or with another substance that does not materially alter the characteristics of the article. Q3. How is a new and different article of commerce defined? A3. A new and different article of commerce is one, which has been substantially transformed as a result of manufacture in a QIZ into an article having a new name, character or use. Example of substantial transformation includes weaving fabric from yarn, making orange juice concentrate from oranges and other ingredients and so on.
Q4. How does the U.S. Customs determine the "Appraised Value" of imported merchandise from the QIZ against which the 35% value-content requirement is calculated? Dose the appraised value include cost incurred subsequent to manufacture in the QIZ, such as shipping and insurance costs and taxes? A4. Appraised value is determined in accordance with the WTO Agreement on Customs Valuation. Generally, the appraised value of all merchandise imported into the U.S. is transaction value of the goods. Transaction value is the price actually paid or payable by the buyer to the seller for the merchandise when sold for exportation to the U.S., plus certain amounts such as the packing costs incurred by the buyer. Transaction value does not include international freight, insurance and other C.I.F. charges that the buyer makes to the seller. It also does not include the cost to transport goods after importation into the U.S. or U.S. Federal Duties or Taxes. Taxes assessed by a Foreign Government which are included in the price actually paid or payable by the buyer to the seller are included in the transaction value, unless the taxes are refunded by the Foreign Government prior to the importation on the goods into the U.S. Procedures and Approval Q5. Who qualified the products? A5. A joint committee was formed with two co-chairmen: a Jordanian appointed by the Jordanian Government and an Israel appointed by the Israeli Government and an observer from the United States to approve all products eligible for duty-free into the U.S. market. The meetings of the committee will take place, alternately, in Jordan and Israel. Coordination will be made via the co-chairmen of the committee. The co-chairmen are responsible for filing and keeping all submitted material for a period of at least five years. The committee is allowed to alter or add to its rules or procedures. Q6. How would the U.S. Customs know the qualified products?
Q7. What is the Committee's Jurisdiction? A7. The committee is authorized to approve products to be produced in the QIZ in accordance with the QIZ agreement. The chairman will send the reply of the committee (approval or denial) to the applicant from his respective country. Q8. What happens in the case denial? A8. In case of denial, the applicant is allowed to appeal to a board of appeals. A Board of Appeals appointed by the parties will deal with appeals. The Board of appeals will convene within 30 days of the appeal. Q9. What does the Application look like?
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