An economic development program providing the duty-free entry to the U.S. market of a wide range of goods from the Republic of Panama and other designated countries. The Caribbean Basin Recovery Act (CBERA) became effective on 1984.

Most products manufactured or grown in the Republic of Panama are eligible for CBERA duty-free treatment. However, there are some specific products which are excluded from duty-free or reduced-duty entry under CBERA , including: most textiles and apparel; canned tuna; petroleum and petroleum products; footwear except disposable items and footwear parts; certain leather, plastic, and rubber gloves; certain leather wearing apparel; and others.

Certain products eligible for duty-free entry may still be subject to federal excise taxes. CBERA duty-free products are required to comply with all applicable laws, regulations, and standards designed to protect U.S. consumers and industry from unfair trading practices and potentially unsafe products.

Eligeble items are identified by either an "E" or "E" with an asterisk in the Special column under column 1 ot the U.S. Harmonized Tariff Schedule. However, items with the "E" and asterisk in the "Special" column may be excluded from the exemption.

Rules of Origin

Merchandise will be eligible for CBERA duty-free treatment only if the following conditions are met:

• the merchandise must be imported directly from the Republic of Panama or other beneficiary country into the customs territory of the United States.
• The merchandise must have been produced in the Republic of Panama or other beneficiary country; this requirement is satisfied when: the goods are wholly the growth, product, or manufacture of the Republic of Panama, or the goods have been substantially transformed into a new and different article of commerce in the Republic of Panama.
• At least 35 percent of the appraised value of the article imported into the United States must consist of the cost or value of materials produced in one or more beneficiary countries.

The cost or value of materials imported into the Republic of Panama from a non-beneficiary country may be included in calculating the 35 percent value-added requirement for an eligible article if the materials are first substantially transformed into a new and different article of commerce and are then used as constituent materials in the production of the eligible article.

Articles, which are assembled or processed in whole from U.S. components or ingredients in the Republic of Panama may be entered free of duty. Duty-free treatment will apply if the components or ingredients are exported directly to the Republic of Panama and the finished article is imported directly into the customs territory of the United States.

Advance ruling from the U.S. Customs Service is available to ascertain the eligibility of a product for duty-free CBERA treatment, prior to actual production in the Republic of Panama or shipping to the United States.

To obtain updated information about CBI, CBERA, and related topics, you may contact the U.S. Customs Service and/or look for related publications by the U.S. Department of Commerce -International Trade Administration and the U.S. International Trade Commission.

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