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OF
U.S. DEPARTMENT OF COMMERCE
*
WITH
Office of the Secretary
Washington, D.C. 20230
STATES of
November 28, 1975
Honorable James E. Connor
Secretary to the Cabinet
The White House
Washington, D. C. 20005
Dear Mr. Connor:
This is in further response to your request of October 23 for
the views of this Department on the proposed "Compact of
Permanent Union Between Puerto Rico and the United States"
drafted by the Ad Hoc Advisory Group on Puerto Rico.
In view of the time constraints in which we have had to
consider the proposed Compact, this response will focus on
those areas which fall within the particular interest of
this Department, i.e., questions of trade and tariff
policies and the concept of a common market as described
in Section 9 of the proposed Compact. We defer comment on
those provisions of the proposal which fall within the
primary interest of other Federal agencies.
Several of the provisions in Section 9 represent little or
no change from existing law. For example, General Headnote 2
to the Tariff Schedules of the United States (TSUS) (19 U.S.C.
un 1202) already provides that Puerto Rico will be considered
part of the Customs Territory of the United States. With
the exception of coffee, articles imported into Puerto Rico
from foreign countries incur the same rate of duty as they
would were they imported directly into the United States
(48 U.S.C. §739) U.S. imports from Puerto Rico and Puerto
Rican imports from the United States enter duty-free (48 U.S.C.
§738) . Duties and taxes collected in Puerto Rico (less the
cost of collection), and the gross amount of all collections of
duties and taxes in the United States upon articles of merchan-
dise coming from Puerto Rico, are paid into the Treasury of
Puerto Rico (48 U.S.C. @740) Further, all taxes collected
under the internal revenue laws of the United States on
articles produced in Puerto Rico and transported to the
United States or consumed in Puerto Rico are paid into the
Treasury of Puerto Rico. (48 U.S.C. §734)
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"ocrText": "OF\nU.S. DEPARTMENT OF COMMERCE\n*\nWITH\nOffice of the Secretary\nWashington, D.C. 20230\nSTATES of\nNovember 28, 1975\nHonorable James E. Connor\nSecretary to the Cabinet\nThe White House\nWashington, D. C. 20005\nDear Mr. Connor:\nThis is in further response to your request of October 23 for\nthe views of this Department on the proposed \"Compact of\nPermanent Union Between Puerto Rico and the United States\"\ndrafted by the Ad Hoc Advisory Group on Puerto Rico.\nIn view of the time constraints in which we have had to\nconsider the proposed Compact, this response will focus on\nthose areas which fall within the particular interest of\nthis Department, i.e., questions of trade and tariff\npolicies and the concept of a common market as described\nin Section 9 of the proposed Compact. We defer comment on\nthose provisions of the proposal which fall within the\nprimary interest of other Federal agencies.\nSeveral of the provisions in Section 9 represent little or\nno change from existing law. For example, General Headnote 2\nto the Tariff Schedules of the United States (TSUS) (19 U.S.C.\nun 1202) already provides that Puerto Rico will be considered\npart of the Customs Territory of the United States. With\nthe exception of coffee, articles imported into Puerto Rico\nfrom foreign countries incur the same rate of duty as they\nwould were they imported directly into the United States\n(48 U.S.C. §739) U.S. imports from Puerto Rico and Puerto\nRican imports from the United States enter duty-free (48 U.S.C.\n§738) . Duties and taxes collected in Puerto Rico (less the\ncost of collection), and the gross amount of all collections of\nduties and taxes in the United States upon articles of merchan-\ndise coming from Puerto Rico, are paid into the Treasury of\nPuerto Rico (48 U.S.C. @740) Further, all taxes collected\nunder the internal revenue laws of the United States on\narticles produced in Puerto Rico and transported to the\nUnited States or consumed in Puerto Rico are paid into the\nTreasury of Puerto Rico. (48 U.S.C. §734)"
}