ELIGIBLE ARTICLES.

SEC. 503. ELIGIBLE ARTICLES. (a) The President shall, from time to time, publish and furnish the International Trade Commission with lists of articles which may be considered for designation as eligible articles for purposes of this title. Before, any such list is furnished to the Commission, there shall be in effect an Executive order under section 502 designating beneficiary developing countries. The provisions of sections 131, 132, 133, and 134 of this Act shall be complied with as though action under section 501 were action under section 101 of this Act to carry out a trade agreement entered into under section 101. After receiving the advice of the Commission with respect to the listed articles, the President shall designate those articles he considers appropriate to be eligible articles for purposes of this title by Executive order. (b) The duty-free treatment provided under section 501 with respect to any eligible article shall apply only— (1) to an article which is imported directly from a beneficiary developing country into the customs territory of the United States; and (2) (A) if the sum of (i) the cost or value of the materials produced in the beneficiary developing country plus (ii) the direct costs of processing operations performed in such beneficiary developing country 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; or (B) if the sum of (i) the cost or value of the materials produced in 2 or more countries which are members of the same association of countries which is treated as one country under section 502(a) (3), plus (ii) the direct costs of processing operations performed in such countries is not less than 50 percent of the appraised value of such article at the time of its entry into the customs territory’ of the United States. For purposes of paragraph (2) (A), the term “country” does not include an association of countries which is treated as one country under section 502(a) (3) but does include a country which is a member of any such association. The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out this subsection. (c) (1) The President may not designate any article as an eligible article under subsection (a) if such article is within one of the following categories of import-sensitive articles— (A) textile and apparel articles which are subject to textile agreements, (B) watches, (C) import-sensitive electronic articles, (D) import-sensitive steel articles, 88 Stat. 2070 (E) footwear articles specified in items 700.05 through 700.27, 700.29 through 700.53, 700.55.23 through 700.55.75, and 700.60 through 700.80 of the Tariff Schedules of the United States, (F) import-sensitive semimanufactured and manufactured glass products, and (G) any other articles which the President determines to be import-sensitive in the context of the Generalized System of Preferences. (2) No article shall be an eligible article for purposes of this title for any period during which such article is the subject of any action proclaimed pursuant to section 203 of this Act or section 232 or 351 of the Trade Expansion Act of 1962.