103 STAT. 3104 PROCLAMATION 6030—SEPT. 28, 1989 (d) The amendments made by Annex IV(a) of this Proclamation shall be effective with respect to articles entered, or withdrawn from ware- house for consumption, on or after January 1, 1989. IN WITNESS WHEREOF, I have hereunto set my hand this twenty- eighth day of September, in the year of our Lord nineteen hundred and eighty-nine, and of the Independence of the United States of America the two hundred and fourteenth. GEORGE BUSH ANNEX I Modifications to General Note 3 to the HTS Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date that is fifteen days after the publication of this Proclamation in the Federal Register, general note 3(c) to the HTS is modified as follows: (a) by striking out, from the enumeration in general note 3(c)(ii)(A) of independent countries / designated as beneficiary developing countries for purposes of the Generalized System of Preferences, "Marshall Islands, Republic of and "Micronesia, Federated States of; and (b) by inserting in appropriate sequence the following new subdivision (viii): " (viii) Products of Freely Associated States. (A) Pursuant to sections 101 and 401 of the Compact of Free Association Act of 1985 (99 Stat. 1773 and 1838], the following countries shall be eligible for treatment as freely associ- ated states: Marshall Islands Micronesia, Federated States of (B) Except as provided in subparagraphs (D) and (E) of this paragraph, any article the prod- uct of a freely associated state shall enter the customs territory of the United States free of duty if— (1) such article is imported directly from the freely associated state, and (2) the sum of (I) the cost or value of the materials produced in the freely associated state, plus (II) the direct costs of processing operations performed in the freely associated state is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States. If the cost or value of materials produced in the customs territory of the United States is included with respect to an article the product of a freely associated state and not de- scribed in subparagraph (D) of this paragraph, an amount not to exceed IS percent of the appraised value of such 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 sub- paragraph (B)(2)(II) above. (C) Tima of subheading 1604.14.20 in an aggregate quantity entered in any calendar year from the freely associated states not to exceed 10 percent of United States consumption of canned tuna during the inunediately preceding calendar year, as reported by the National Marine Fisheries Service, may enter the customs territory free of duty, provided that such imports shall be counted against the aggregate quantity of tuna that is dutiable under the general subcolumn of rate of duty column 1 for subheading 1604.14.20 for that calendar year. (D) The duty-free treatment provided under subparagraph (B) of this paragraph shall not apply to— (1) tuna of subheading 1604.14.20 (except tima in an aggregate quantity entered in any cal- endar year from the freely associated states not to exceed 10 percent of United States con- siunption of canned tuna during the immediately preceding calendar year, as reported by the National Marine Fisheries Service); (2) textile and apparel articles which are subject to textile agreements; (3) footwear, handbags, luggage, flat goods, work gloves and leather wearing apparel, the foregoing which were not eligible articles for purposes of the Generalized System of Prefer- ences on April 1, 1984; (4) watches, clocks and timing apparatus of chapter 91 (except such articles incorporating an optoelectronic display and no other type of display); and (5) buttons of subheading 9606.21.40 or 9606.29.20.
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